Hi all

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

Regards
Nic

On Tue, 23 Nov 2004 09:45:09 +0000, Nic wrote:

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

Err... you can't I think, and quite rightly too.

If the business owes £££ then that debt belongs to the business -
imagine the dodges if you could sign the business over and keep the debt
where it is - people would asset strip like mad.

As far as I know the solvent partner would have to negotiate a
settlement with the Trustee in bankruptcy to purchase your share of
the business. He/She would however, I assume, then inherit all the
debts and liabilities associated with the business, while you are left
sorting out your personal debts.
Is that what you wanted to know?

Paul Robson wrote in message ichucks.freeserve.co.uk...
On Tue, 23 Nov 2004 09:45:09 +0000, Nic wrote:

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

Err... you can't I think, and quite rightly too.

If the business owes £££ then that debt belongs to the business -
imagine the dodges if you could sign the business over and keep the debt
where it is - people would asset strip like mad.

I think you got me wrong. The debt is mine, the business doesnt owe it I do
personally. but I am having to use business money to pay back my personal
debt. This is slowly dragging the business down. I need a way to safeguard
the business which my partner helped build but as of now has no legal
ownership in it. I will willingly forfeit my share to him as I dont see why
he has to lose out due to my personal mismanagement of my own debt.

regards
Nic

"Paul Robson" wrote in
message
news
On Tue, 23 Nov 2004 09:45:09 +0000, Nic wrote:

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

Err... you can't I think, and quite rightly too.

If the business owes £££ then that debt belongs to the business -
imagine the dodges if you could sign the business over and keep the debt
where it is - people would asset strip like mad.

"N.Thurlow" wrote:

I think you got me wrong. The debt is mine, the business doesnt owe it I do
personally.

Is your business a Ltd Company?

Archie

N.Thurlow wrote:
I think you got me wrong. The debt is mine, the business doesnt owe it I do
personally. but I am having to use business money to pay back my personal
debt. This is slowly dragging the business down. I need a way to safeguard
the business which my partner helped build but as of now has no legal
ownership in it. I will willingly forfeit my share to him as I dont see why
he has to lose out due to my personal mismanagement of my own debt.

regards
Nic

what kind of business? Sole trader, partnership limited company?

Nic wrote:

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

See an insolvency practitioner. They will be able to help you save the
business. It may not involve transferring it to someone else.

"Jonathan Bryce" wrote in message
...
Nic wrote:

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

See an insolvency practitioner. They will be able to help you save the
business. It may not involve transferring it to someone else.

But watch the cost - and watch the advice! They are for example:

Likely to advise you to go for an IVA (fees to them circa £4K) if they can
rather than bankrupcy (fees to then circa £500).


Actually, just realised i;m well out of date - when I went bankrupt 3 years
ago I had the choice of a 3 year bankrupcy and lose everthing
or a 5 year IVA paying off a percentage of debts.

So how has the new 1 year bankrupcy affected IVA's? Surely no-one is going
to go for one when you can do just a year?

"Nic" wrote in message
om...
Hi all

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

IANAL... you have to dispose of the business through the bankruptcy as one
of your assets. It's not clear if the business is also indepedently
insolvent (as it would be if it's a seperate legal entity). You might have
to liquidate any legal entities that own the business as well. Then your
mate may be able to buy the assets of the business without the debt from the
trustee.

On Tue, 23 Nov 2004 09:45:09 +0000, (Nic) wrote:

Hi all

Does anyone know anything about bankruptcy law. I wish to file for
personal bankruptcy but save my business. How can I sign it over to
my partner without him being liable for all the current business debt.
This I will file in the bankruptcy court. He is able to finance the
business himself and it is a viable business if only it didnt have to
pay for my personal debt. Any ideas would be appreciated.

IANAL

AFAIK your shares (which may be 100%) in the business would count as
part of your personal assets. Therefore, should you declare
bankruptcy, your share in the business could be sold to offset your
debts. Your partner could buy your shares at a price acceptable to
the official receiver. This could well be way below the true value of
the business, because it will be assessed against what it could
actually realise if it were liquidated.

--
Cynic