What if I need business debt advice?
The legal status of your business determines how your debts will legally be treated and what type of business debt advice you require.
For example, a Sole Trader will be personally liable for all the business debts, which are treated no differently to their personal debts. Debt Advice Foundation can advise Sole Traders on the most appropriate debt solution for their circumstances.
Partnerships are treated differently to Sole Traders in that the Partners are jointly and severally liable for any debts (this means that even if one Partner goes Bankrupt, the remaining Partners can be pursued for the remaining liability in full).
Limited companies are separate legal entities, which means that company directors are not personally liable for the company’s debts (there are some exceptions to this – personal guarantees, wrongful or fraudulent trading, PAYE & Income tax liabilities after taking cash drawings and transactions under value).
For advice on Partnership and Limited Company debts, please visit the Business Debtline website.
Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on debt. If you need to talk to someone about debt, please call the charity’s helpline on 0800 043 40 50 to speak to an adviser.