Help. Applying for Bankruptcy :(

Siobhan7

Hi

I am about to apply for bankruptcy. I have been in touch with Step Change throughout this whole ordeal. Been getting my finances in some kind of order before I apply for it (as well as saving up for the fee!)
My question is - I took out a business loan back in November, it was just a start up loan and due to one thing and another, the business hasn't been successful as I wanted it to be (it was at first but the reason I am in this mess is because of a huge legal dispute with a car dealership and due to that I became behind in bills and had to downgrade the equipment meaning we have had to rebrand and not had the finances to pool into the promotion)

Anyway - My other half has actually put a lot more money into the business than me and because I started a new job, I had no time for it so I signed the whole lot over to him.
I'm worried that because the loan is in my name, they will take the business equipment away. The entire business is in his name and I get no income at all from it (and neither does he)

Am I worrying about nothing or will they definitely take the equipment away?

Flyright

From what you describe this appears to be a transaction at undervalue so the OR is highly likely to be interested in pursuing the matter.

Brock_and_Roll

Flyright wrote: »

From what you describe this appears to be a transaction at undervalue so the OR is highly likely to be interested in pursuing the matter.

Exactly. Presumably the business equipment has significant value and the OP has "signed it away" (presumably for no payment) so this is clearly a transaction at undervalue that any IP worth their salt will spot and investigate.

It does not mean that the equipment will be taken away however. It may mean that the other half will be required to buy the assets at a price to be argued over (depending on the extent to which he can prove that the business is half his a in terms of ownership and investments.