PERSONAL INSOLVENCY
As an entrepreneur it is likely that lenders will require you to personally guarantee the loans of your business even if this is carried out through a limited liability company. As a result, if your business becomes insolvent, this may mean that you also become personally insolvent. Personal insolvency may lead to bankruptcy, but the law gives you a “second chance”. If you comply with the requirements of the law, most debts are considered as fully paid in three years from the start of the bankruptcy and you can be automatically reinstated from bankruptcy.
An alternative “quasi-bankruptcy” procedure (personal insolvency plans) allows insolvent individuals to retain control of their estate, mainly of their home, if creditors or the court agree to a five-year repayment arrangement. With the successful completion of the plan, all unsecured debts are considered as repaid.
Our experienced insolvency practitioners are here to guide you through your options to achieve the best result for your own circumstances.