Partnerships & Sole Traders
Unlike a limited company where the debts of the business remain with the company, a sole trader or a partner is automatically liable for all the debts of the business. When an unincorporated business fails the sole trader or partner will not only face the loss of his business and income but will also risk the loss of any personal assets such as his house and savings.
It is therefore important that you establish the up to date financial position of your business and realistically consider the prospects of the business continuing. You should seek professional advice sooner rather than later so as to fully understand the options available and increase the prospects of saving the business.
We understand that every business is different and our experienced team is qualified to assess your individual circumstances and guide you through the best options available to you. We will give you friendly and practical advice that is right for you on a no obligation, no cost basis.
The options available to you will include:
- Re-financing and reorganising your business in order to trade through your current difficulties. It may be that you are able to re-mortgage your property in order to consolidate your debts on a sensible and more affordable basis. We can help you achieve this.
- Entering into an Individual Voluntary Arrangement (IVA) with your creditors in satisfaction of your debts. In an IVA the interest on your debts will be frozen and you will pay only what you can afford. At the end of the IVA your remaining debts will be written off in full and you will be debt free. An IVA should not interfere with the running of your business or put your business at risk. We can prepare proposals for an IVA for you and deal with your creditors on your behalf.
- If an IVA is not appropriate and your business can not be saved, Bankruptcy may be the best option for you. We will advise you on the best option and if it is Bankruptcy, we will help guide you through the process.
Please remember that doing nothing is never a good option as your problems will only get worse and your business will be put at greater risk. The sooner you take advice the sooner your problems will be resolved.