go bankrupt or iva for the remaining debt

[dml]

i am currently running a franchised business and i am looking to sell it but still owe approx £55,000 in a government loan scheme.my business is getting sold for £60,000 which will cover the rest of the debt the business owes.i am in my 3rd year and have lost money every year.can i sell my business for £60,000 pay off the debt and go bankrupt or iva for the remaining £55,000,your advice would be much appreciated cheers dave

[catullus]

There is a lot more information that would be needed to give you a full answer but, fundamentally, assuming that the bank through which you took out the LGS has no security over any of the business assets, and also assuming that the business is in your own name, the sales proceeds of the business should be shared amongst all your creditors and not just the bank.

This is quite a complicated issue and the timing of a sale with an IVA/bankruptcy could be crucial and I rather doubt that it will be possible to get all your answers here.

You really should take some advice from an IP and, in this case, one that you can meet face to face, This really can't be dealt with over the telephone.

As to the choice of IVA/BKR, an IVA is only likely to be an option for you if you have sustainable income after you have sold the business.

[MelanieGiles]

Very good advice - especially to take advice directly from an insolvency practitioner. I assume that we are talking about a Limited Company here?

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