Business Debts | Business Debts Advice

If you are Self Employed, Own a Business or are a Sole Trader and are struggling with your debts Debt Solutions can offer you help. We can offer you free, confidential, no obligations advice to self employed individuals and small businesses who are struggling with their debts, whether they be personal or business debt.

There are several Business Debt solutions that we offer to help your business as stated below. The most common being a Voluntary Arrangement. There are different types of Voluntary Arrangement depending on your business status and types of debts. There are

• CVAs (Company Voluntary Arrangement) - suitable for Limited Company debts
• IVAs (Individual Voluntary Arrangement) - suitable for Sole Traders debts
• PVAs (Partnership Voluntary Arrangement) - suitable for Partnership debts

Sole Trader Debts

A Sole Trader is an Individual who is running their own business and it is not a Limited Company. If you are a small business and are struggling with debt then no doubt you will be finding it very difficult. As you are a sole trader you cannot separate your business and personal debts. You are responsible for all the business debts which are treated the same as your personal debts so even if you stopped trading. An IVA may be a suitable Debt Solution for Sole Trader Debts.

For more information on Sole Trader Debts call our debt advisors on 0800 043 0200 or browse the site for more help on business debts. Get in touch here.

Partnership Debts

If your Business is a Partnership then all partners are jointly liable for any debts the business may incur. The debt cannot be split into partners shares, all partners are responsible for the total debt. So if in a scenario where one partner cannot meet a debt payment they creditors will seek the debt payment from the other partners. If one partner of the business is made bankrupt, although the debt is writen off for them the creditors can still pursue the other partners for the full debt.

For more information on Partnership Debts call our debt advisors on 0800 043 0200 or browse the site for more help on business debts. Get in touch here.

Limited Company Debts

In a Limited Company the debts belong to the company. This means that if the company is deemed Insolvent the directors and shareholders are not liable for the debts as they are all in the name of the company, unless they have personally guaranteed the debt. If the company could not make its debt payments it may need to stop trading and be liquidated. A Director or shareholder may not be personally liable for the companys debts but they can be personally liable for...

• any personal guarantees given on behalf of the company, for example to banks, finance companies, landlords etc.

• Their own PAYE and National Insurance (NI) deductions which are unpaid.
  
  
• any unpaid income tax arising where you have taken cash drawings from the company;
  
  
• any liability resulting from fraudulent trading

How can a Limited Company business sort out its debts?

For Limited Company Debts a CVA (Company Voluntary Arrangement) may be a suitable debt solution. A CVA is like an IVA, its is an agreement between the limited company and the creditors. It allows you to continue trading while paying back some or all of your debts.

For more information on CVAs and Limited Company Debts call our debt advisors on 0800 043 0200 or browse the site for more help on business debts. Get in touch here.