Hi hope someone could give me some advise as I am so worried. I have a new business that is in trouble I have enough funds to keep it going for another month if things stay quiet. I borrowed £25000 to get it started this is an unsecured personal loan. I have also had to borrow more from my bank around £7000 again unsecured. My problem is the shop is still trading at the moment with rent of around £3000 a month. I have a tweleve month lease on the shop what happens if I have to close before the lease is up? I dont want to be stuck trying to pay the lease with no business because it is just impossible! Really need some help please as I just dont know what to do. When should I look at going bankrupt and is there another way out?!
I am afraid that you are going to be rather stuck with the lease, whether you cease trading at the shop or not, unless you can persuade the landlord to accept a voluntary surrender (unlikely) or find someone to assign it to.
Bankruptcy would remove you from the liability, and your Trustee would then probably disclaim the lease leaving it up to your landlord to then relet the property.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
how long have you got left on the lease as perhaps there is a midpoint that could be achieved with the landlord.
In these difficult times it may be possible to negotiate with the landlord for a reduced lease payment for a couple of months which may be helpful to the business.
It may not be necessary to go down the Br route yet and is certainly worthwhile reviewing the whole situation with an expert.
1. possibility of continued trading IF it is clear than the business can be turned around.
2. A dignified conclusion of the business and hand back of the keys to the landlord rather than keep going for a few months racking up more debt.
Please give an expert a call - you might want to start with Melanie - and see how you get on.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
Bad business debt help needed.
Posted - 07 May 2008 : 19:46:07
