Business going broke, will landlord chase?
Comments
-
She has no other bills except ones through the limited company which is 2 months rates and gas and electric. Surely when the ltd company closes those debts would be written off?
I know councils are bad news for debtors but wouldn't she be protected via the ltd company?0 -
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.0
-
sorry, what is a BR?0
-
She has no other bills except ones through the limited company which is 2 months rates and gas and electric. Surely when the ltd company closes those debts would be written off?
I know councils are bad news for debtors but wouldn't she be protected via the ltd company?
The company can't just close, unless it has paid all its creditors. For winding up the company, see here particularly point 5.
Even if you DIY, there will be costs involved. See here on how to liquidate your company.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
-
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?0 -
Not sure on that, we are seeing the solicitor Friday but if it's going to be £20k there is no way we could pay this unless it can be paid over a good few years. The landlord is 89 would you believe so I doubt he would want that at his age.0
-
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.0 -
So basically it comes down to the landlord and how vindictive he wants to be! I know he wants the property back asap anyway to sell it for redevelopment. My partner is the only business in the property, it has a large number of empty flats above it also. It's worth £1.2m, so £20k will be a drop in the ocean.
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.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
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.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards