Sole Trader will we loose our house?

dellab1965

My Husband is a sole trader, due to not being paid for a large job running into thousands ( the guy has gone Bankrupt) we now have a serious cash flow crisis and simply cannot pay our suppliers etc. He wants to stop trading but as he is a sole trader not a ltd co will we loose our home and what is the best course of action for us to take, many thanks

sammy115

How much do you owe your suppliers? Will they accept a payment plan whilst you trade your way out of this problem. I am assuming you are on the list of creditors with the person who went bankrupt but that you have no realistic chance of getting any money off him.

Do you owe any money to HM Revenue and customs...Whether you lose you house or not really depends on the level of your debt but I would think not in all reality...

rog2

Hi dellab - speaking as an ex 'sole-trader' myself, I fully understand what you are going through at the moment.
It is very difficult to answer your question, regarding losing the house, without knowing all of the details - However, I can say that we managed to keep our house, but it meant that my wife had to 'buy back' my beneficial interest from the Official Receiver and am now stuck with a mortgage again.
In the first instance, you and your husband need to talk with one of the debt counselling charities - I think 'Business Debtline' www.bdl.org.uk tel. 0800 1976026 could be a good start as these 'debts' are all related to his business.
They will be able to go through all of the options that are open to you.

Good luck