Business going broke, will landlord chase?

If your partner takes the BR route - you need to ensure you have no financial links to her such as joint bank accounts etc - this is will go some way to protecting your credit history from the 'association' of a BR.

Check the T&C's for the energy accounts as to whether she agreed to personally guarantee them. I doubt it, but just in case. Also check the business lease, which she is personally liable for, in case the liability applies for bills too. You want to cover all bases.

You'd be wise to call business debtline as they see this situation every day. I found them very helpful. They might be able to give you an idea of the likelihood of court action and what that would mean.

I can't imagine the landlord waiving all he is owed but wish you good luck! I suppose if it all goes wrong she could go BR at that point. Is there no way you could attempt negotiation of a tidy end to it all, since he wants to sell the place anyway?

Tarambor wrote: »

The landlord can petition to have her declared bankrupt. Some creditors, especially individuals, will find that the cost of bankrupting a debtor is worthwhile in order to get at least some satisfaction that the debtor isn't going to be walking away scot free unscathed. It won't cost you anything in bankruptcy fees but it will cost you a lot in your life going forward for the next 6 years due to the fallout of being declared bankrupt such as having to go on pre-pay gas and electricity on a higher tariff, having to put down a deposit to have a phone in the house, more expensive car insurance as you have to declare you've been made bankrupt in the past on an application, any future borrowing being at a far higher rate of interest.

If there is no debt with utilities the supplies will continue as before they will not put in a pre payment metre.
Nor will you have to pay more for car insurance although they may want you to pay for the year instead on monthly.
I can honestly say my B.R has been totally stress free compared with the years prior.

silvercar wrote: »

Offer a deal, you relinquish the lease early in return for no debt owing. If the landlord is 89 he may well want this all sorted as a matter of urgency.

He might do, but as I found out when I asked my solicitor to quote, even one piece of paper officially ending the lease and all liabilities could cost £500+. And of course all parties would have to be in full agreement. Maybe you'll get lucky as this guy is old, but my experience of commercial property developers is that they wouldn't let age get in the way of their pain in the backsideness.