are they legally allowed to try and recoup money

[clamar]

I ran a business with a partner which I subsequently left and the other partner carried on running it. The business had accumulated numerous debts and as a result the other partner entered into an IVA. Over 2 years later a company which was owed money have decided to chase me for the money owed even though a county court judgement was made against the other partner to pay the debt and it also comprises as part of his IVA but they state they haven't had any money from it yet. My question is are they legally allowed to try and recoup the money from myself when it is part of an IVA, to my knowledge when you enter a debt into a IVA the debt only exists as part of the IVA. They want to add me on as a second defendant. Please advise.

[catullus]

Hello Clamar

I'm afraid that, on the facts that you have given, it is very likely that you are liable.

I assume that you were running a partnership (as opposed to limited company) in which case the debts are incurred in your joint names meaning that you are both liable.

Your ex partner has addressed his debt issue through an IVA, That completes his responsibilty to the creditors so long as he sticks to the terms of the IVA.

You still have that debt issue and the creditors are entitled to ask you to pay the debt in full. If you did pay the debts off then, in theory, your ex partner would owe you 50% of what you had paid (assuming that you were equal partners)

[MelanieGiles]

Hi clamar and welcome to the forum

If the partnership was not formally dissolved when you left, then you are technically liable for debts which it has and may still be continuing to incur. An IVA does not bring and end to a partnership in the same way as bankruptcy proceedings would, although I imagine that your business partner is not continuing to trade now? You are not a second defendent - you are a partner with joint and several responsibility for the debt. I suggest you seek legal advice with regard to this matter as soon as possible.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ray_a]

Hi Clamar

I agree with the other points mentioned above.

Looking at my IVA paperwork it appeared that no payments were made to my creditors and I suspect tht these would be paid when the IVA supervisor takes the view that a dividend can be paid.

It does like that you have a problem though as the partnership creditors if the partnership was not disolved properly can go for you.

In saying that it is possible for you to come to an arrangement with them which will take into account the loss arising on the amount lost via your ex partner going into IVA.

Generally Creditors will be sympathetic.

Good Luck

Ray