Going Bankrupt

Discussion in 'Legal' started by lknights1987, Feb 6, 2018.

  1. lknights1987

    lknights1987 UKBF Newcomer Free Member

    25 0
    If you own a business and have to go bankrupt will you loose your property that you have a mortgage on?

    Will you be able to set up another business?
     
    Posted: Feb 6, 2018 By: lknights1987 Member since: Mar 7, 2013
    #1
  2. KAC

    KAC UKBF Enthusiast Free Member

    797 176
    Is your business a sole trader, a partnership or a limited company?
    Are you married and is the property and mortgage in joint names?
     
    Posted: Feb 6, 2018 By: KAC Member since: May 7, 2017
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    7,042 740
    If you go bankrupt the property depends on the equity. Low or negative equity then may keep the house, same with buying out the equity for the bankruptcy.

    You cannot normally be a company director while bankrupt but some people do run a self employed business.
     
    Posted: Feb 6, 2018 By: Mr D Member since: Feb 12, 2017
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    1,893 236
    You really should speak to an IP before making such a serious decision to see if BKY is the best option for you.

    If you have equity in your property it is at risk of being repossessed and sold or a third party having to find funds to buy out the Trustee's interest.

    There are other ramifications too:
    • You may not be able to continue trading
    • Assets are at risk
    • Some debt survives bky
    • credit rating damaged 6 years
    • Windfalls will vest in estate whilst bkpt
    • you may have to pay income contributions for 3 years
    • you cannot be a Director
    Also consider an IVA, Debt Relief Order and Debt Management Plan.
     
    Posted: Feb 7, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #4