I have a business which I bought as a partnership with my late wife

by Readers Question

10:40 AM, 15th October 2015
About 3 years ago

I have a business which I bought as a partnership with my late wife

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I have a business which I bought as a partnership with my late wife

I bought a business 13 years ago with my wife as a partnership. A family member gave us £40,000 as a deposit to start up and we got a business mortgage for the rest.second

However, the family member went bankrupt 7 months later and we became liable for the £40,000 so after plenty of court hearings they put a second charge on the property.

My wife lost her battle with cancer 2 months ago and I do not want to carry on with the business and want to sell up.

The problem I have is the business valuation will only just cover the mortgage what will happen to the second charge ?

Many thanks

Michael



Comments

Neil Patterson

10:47 AM, 15th October 2015
About 3 years ago

Dear Michael,

On behalf of all of us I am very sorry for your loss.

You said that the business was a partnership so I am assuming it is not a Limited Liability Partnership?

If it is not then the responsibility to repay the charge is not limited to the company and therefore you will still be liable to repay the debt. Do you have an accountant that you can discuss this with as obviously we do not have all the information to hand to properly advice you what will happen next.


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