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small business bankruptcy
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Can you please give me detailed information or links regarding small business bankruptcy. I had a very small family run cabinet making business that unfortunately went sour, financially speaking, due to lack of adequate business compiled with business operating expenses. Needless to say, this was my first and only business that was short lived. What I need to know is my options on bankruptcy now on these debt alone. Can I choose just to bankrupt these business debt, excluding my personal debts? Please tell me any and everything you can regarding this matter. Best Regards, MJ
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Oh dear, am sorry to hear about your problems.
Firstly, it would depend whether you are talking about a Limited Company, or a Sole Trader (ie you trading as yourself or anoer name perhaps)
The probem you hav is that Bankruptcy takes into account EVERYTHING - you cant pick and choose which debts to include and whih ones not to, if one goes in THEY ALL go in, the same goes for your assets. Think of it as a great big pot that your entire finances get thrown in, everything you own (house, money in bank etc) goes in and everything you owe gets paid from that. A trustee will be appointed after bankruptcy and they will put a charge on your house, so that means that any equity in it then beongs to them to disperse to the creditors (people you owed money to).
I hate to say this, but PLEASE go get advice (go to an accountant or insolvency practiotioner NOT a solicitor) prior to going bankrupt, there are ALWAYS other alternatives, and they are normally ones that will not involve you handing over the next god knows how long of your financial life to a trustee who willcharge the account he holds for you fees in the region of �12000 per year to look after.
Good luck
Firstly, it would depend whether you are talking about a Limited Company, or a Sole Trader (ie you trading as yourself or anoer name perhaps)
The probem you hav is that Bankruptcy takes into account EVERYTHING - you cant pick and choose which debts to include and whih ones not to, if one goes in THEY ALL go in, the same goes for your assets. Think of it as a great big pot that your entire finances get thrown in, everything you own (house, money in bank etc) goes in and everything you owe gets paid from that. A trustee will be appointed after bankruptcy and they will put a charge on your house, so that means that any equity in it then beongs to them to disperse to the creditors (people you owed money to).
I hate to say this, but PLEASE go get advice (go to an accountant or insolvency practiotioner NOT a solicitor) prior to going bankrupt, there are ALWAYS other alternatives, and they are normally ones that will not involve you handing over the next god knows how long of your financial life to a trustee who willcharge the account he holds for you fees in the region of �12000 per year to look after.
Good luck
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