I went into business and set-up a partnership with someone I have known for years. Both of us were equal partners, but I financed the company, while he did all the work. That was our agreement. He now has decided he no longer wants to be a partner in the company and has moved onto working for himself, which leaves me no one to do the jobs we have, and I am also liable for the company’s debts. I took out the loans to fund the business, they are all in my name. There are 2 loans of about £10,000 each. My question is what can I do? Without the revenue from the jobs, I cannot afford to pay the loans.
I am sorry to hear of your business venture, and unfortunately unless you have things in writing between you and your now ex-business partner, there is little you can do regarding the company. You may wish to seek legal advice on that matter.
As you signed for the 2 loans, you are responsible for those loans.
And unfortunately if you cannot repay the loans, the bank or lender can chase you for payment.
I would advise you to speak to the lender and explain your situation, and inquire what options they may have. Can they provide a payment holiday, rewrite or restructure the loan to reduce the payments?
Do you have any other debts, if so, how much in total?
Are these other debts in just your name? Are you in arrears with any of them?
Do you have any assets, such as a property, and if so, is in just your name?
Is there any equity or value in any property you may own?
Get back to me and we can look into this further and search out a solution.