Would I become bankrupt &is it that bad?

guns511

Hi I am in the process of saving up to start my own business next year and my parents aren't sure about me doing it because they say they might loose their home? ( I live with parents..I'm only 19 lol)

Say the business did fail would my parents loose their house or any assets?

Would I loose any assets such as my car etc and if so I would be made bankrupt as the business would probably have debts of around £40k if it shut down and I don't have £40k worth of stuff lol.

If I do get made bankrupt is it that bad? If it clears after 6 years then I would be 25-26 when it clears by which time most people don't own a house yet so I wouldn't be loosing out on much..or do I have to pay off the £40k before it clears?


OR would only the business assets be taken and the business put into liquidation instead of me loosing out on it.


Thanks guys

National_Debtline

Hello guns, welcome to the forum.

guns511 wrote: »

Hi I am in the process of saving up to start my own business next year and my parents aren't sure about me doing it because they say they might loose their home? ( I live with parents..I'm only 19 lol)

Say the business did fail would my parents loose their house or any assets?

I don't see why this would happen. You state that you are saving up to start the business, so presumably your parents are not funding it, nor providing any personal guarantees for it. Therefore your business - and any debts you incur from it - would have no impact on them whatsoever.

Living under the same roof as them would make no difference to this.

Would I loose any assets such as my car etc and if so I would be made bankrupt as the business would probably have debts of around £40k if it shut down and I don't have £40k worth of stuff lol.

This is very specific - what leads you to predict such a precise level of debt in the event of the business failing?


If I do get made bankrupt is it that bad? If it clears after 6 years then I would be 25-26 when it clears by which time most people don't own a house yet so I wouldn't be loosing out on much..or do I have to pay off the £40k before it clears?


OR would only the business assets be taken and the business put into liquidation instead of me loosing out on it.

This will depend on how you set up the business. Are you planning to set up a limited company and act as its director? In this case, any debts the company runs up can only be recovered from company assets, not from you personally.

If, on the other hand, you are acting as a sole trader, then you would be personally liable for any debts incurred running the business.

There's an awful lot of useful guidance on starting your own business at the GOV.uk website - I would recommend you check it out:

https://www.gov.uk/business

Best of luck in your endeavours

Dennis @NDL


Thanks guys