personal bankruptcy, What happens to my business

[dianag]

I am single, earning £435/month, have debts in my name in the region of £75K, have rented accomadation, not a property owner.
Started my retail company (small boutique in Essex) in 2004, had a loss of £36K in the first year, £7K profit second year and probably around £10K third year. I'm not a director of the company. What happens to the business if I apply for personal bankruptcy?

[MelanieGiles]

Hi dianag and welcome to the forum

The effect of a bankruptcy would be for your assets to vest in a Trustee, which would then be realised to pay off your creditors. This will include your interest in your business, whcih will most likely be closed down.

How have you got in the situation of owing so much money, when your income is so small? I imagine that you have been borrowing money to invest in the business, but if it is only providing you with a nominal income is it not better to cease trading and find salaried employmen?

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 Dianag

I am afraid Melanie is right and perhaps you should look at something else!

You could try and sell it if you can find someone to buy it.

Perhaps you could give us some more info and we could help you.

I do a lot of work with smaller businesses and I always feel very sad when they fail because i know a lot of work is put into them!

Take care

Regards

Ray