Partnership debt advice please

Discussion in 'Scotland' started by Chatham, Jan 21, 2013.

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  1. Chatham

    Chatham UKBF Newcomer Free Member

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    Hi there

    My business partner and I have been in business together for 15 years. Recently we casually discussed amicably going our separate ways. Since then he has decided that this is something he definitely wishes to do and is prepared to take on our partnership debt by way of buying me out.

    Around half of the debt is bank overdraft which he would take a loan to clear, but that still leaves supplier debt of approximately half. He has committed that he will agree with our suppliers to take their debt on personally absolving me from all liability.

    I understand that in Scottish law we are joint and severally liable for our debt so does anyone know if there is any legal precedent or method by which he can take on this debt whilst leaving me free of liability?

    My thoughts were that the local suppliers with whom we have good relationships would probably be happy to provide some form of document or letter agreeing to his taking on the liability and 'releasing' me from it. However I don't see hmrc, council rates, etc. agreeing to the same. I'm happy for us to part ways amicably and do something new, I just want to ensure that, if I agree to the separation on those terms, there is a cast iron guarantee of some form that I will not be liable for the debts incurred whilst we were together should he fail thereafter or not honour the debts.

    I have searched online endlessly to no avail so would be very grateful for any assistance offered. My next call is to a solicitor but I wanted to have N idea of the options if there are any before doing so.
    Thanks in anticipation
    Posted: Jan 21, 2013 By: Chatham Member since: Jan 21, 2013
  2. Walkol

    Walkol UKBF Enthusiast Free Member

    554 125
    I would advise you post this in the legal section. It appears this sub-forum gets very little activity.
    Posted: Jan 23, 2013 By: Walkol Member since: Sep 14, 2012
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