Going Bankrupt

[lknights1987]

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?

 

[KAC]

Is your business a sole trader, a partnership or a limited company?
Are you married and is the property and mortgage in joint names?

 

[Mr D]

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.

 

[Lisa Thomas]

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.