someone went into a partnership whilst under and iva. didn't tell his business partner, should he have done.
he is now not in the partnership but owes the business money for the return of excess drawings. can he be sued for this whilst under the iva.
Being in an IVA does not preclude a person from entering a partnership. The other partner should have used due diligence and checked the potential partners background.
I don't think a court action would get very far, but there is nothing stopping one.
If he is still in the IVA the new debt could possibly be included, or the whole thing might derail the IVA totally.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
No need for apologies, John. We are all entitled to our opinions and I often play devil's advocate for the sake of arguement.
He should have come clean, John, yes, and morally obliged to do so ..... but if everyone were expected to rely upon disclosure there would be no such things as credit checks.
Courts have recently ruled that several loan companies have had to forfeit loans due to their failure to make relevant checks .... they overlooked the fact that the borrowers did not declare their inability to repay.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If a partner enters an IVA the other partners must be notified as must the creditors of the partnership. If his did not happen then either he was not entirely truthful with the IP or the proposal was flawed from the start.
