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diane.hs
Starting Member
4 Posts |
 Posted - 02 October 2009 : 15:35:19
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| My business partner and I have a business account and an existing small business loan with a balance of £5300, both are in joint names - if he declares himself bankrupt what happens to the bank account and the loan? |
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debtinfo
forum expert
2826 Posts |
Posted - 02 October 2009 : 20:15:54
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| hi is it a partnership business or a ltd company |
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diane.hs
Starting Member
4 Posts |
Posted - 05 October 2009 : 11:49:23
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it is a partnership
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 05 October 2009 : 13:52:09
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Unfortunately, as it is a partnership, both you and your partner are jointly liable for any debts in joint names. If he was to declare himself bankrupt and therefore was unable to repay the outstanding debts, you would become liable for the full outstanding balances.
John Blackadder |
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diane.hs
Starting Member
4 Posts |
Posted - 05 October 2009 : 13:57:59
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The lease is in his name - what about court orders in his name is he solely responsible?
Would Customs & Excise chase us both for outstanding VAT and PAYE?
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 05 October 2009 : 14:23:54
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The same rules apply for any partnership debts, including Crown debts.
With the lease, it is dependent upon in whose name the lease was granted. If it is solely in his name then you can not be held responsible for any breach.
As far as the Court Orders are concerned, it depends on which debts the creditors have obtained these. If they are partnership debts then you are liable. If not, your partner is liable.
Having said the above, was it a proper partnership?
John Blackadder |
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diane.hs
Starting Member
4 Posts |
Posted - 05 October 2009 : 15:04:05
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There was no partnership agreement and I didn't sign anything to say I was in partnership with him. The current account is in joint names (overdrawn £3K), the loan was signed for by both of us (£5300 outstanding), the correspondence from the VAT is addressed to the business. What if I offer HSBC half - would the other half remain with him?
He was actually diagnosed with Primary Progressive Multiple Sclerosis on 23.04.09. We did take out PPI on the loan but the insurers have said that they won't cover it because he was having tests for the symptoms he was exhibiting in 2007 (but not specifically for MS). An MRI scan in March 2009 revealed MS and doctor told him on 23.04.09. Do you think insurers are trying it on?
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My business partner and I have a business account
