Debt options for sole traders and partnerships from Access Debt Solutions
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Debt options for sole traders and partnerships

The business is in difficulty - What are the debt options for sole traders and partnerships?

The answer depends very much on the type of business you have been running and the potential liabilities incurred . . .

Sole traders

This is where it is just you in business on your own. You are personally liable for all business debts, which from a legal standpoint are treated no differently to your personal debts. Just because you trade as a business name, doesn´t mean to say that you can separate yourself from the business debts.

Access Debt Solutions provides free debt advice via our business health check form - to take advantage of this service click here.

Partnerships

Partners are jointly and severally liable for all business debts. This means that all partners can be pursued for the total debt; it is not possible to divide it into partners´ shares. If creditors cannot obtain payment of a debt from one partner, they will seek payment in full from the others.

If one partner goes bankrupt, although the debt will be written off for that partner, creditors can still pursue the remaining partners (or former partners) for the whole debt. In effect, what this means is that partners with most assets have the most to lose.

Access Debt Solutions provides free debt advice via our business health check form to take advantage of this service click here.

Debt options for sole traders and partnerships

Turnaround and informal arrangements

Corrective action such as company and capital restructuring, reducing costs, concentrating on core products, sale of part of the business, and increasing financial control can help towards making a company profitable. Informal arrangements can then be made with creditors to pay the debts off.

Access Debt Solutions are experts in this field, for free confidential advice contact us.

Individual Voluntary Arrangements (IVAs)

Individual Voluntary Arrangements can provide a way to avoid bankruptcy if you can raise a sum of money that your creditors will agree to accept in full and final satisfaction of their debts.

From a business perspective IVAs allow you to continue to trade and generate income and they allow creditors to claim tax relief against bad debts. Unlike bankruptcy, you can still be a company director or retain your professional status.

If you think that an IVA is for you, complete the online IVA application form or give us a call now on 0800 694 0484 to discuss.


For further information on Individual Voluntary Arrangements click here.

For information on avoiding bankruptcy click here.

If you require debt options for companies rather than for sole traders and partnerships then click here.