Some advice please on small business

[BASSETT]

Hi, I lease small newsagents as a sole trader which is failing due to fall in foot trade and the economy in general, have had it on open market for almost a year and have reduced the price twice. The decline in the past year has been frightening.

My partner runs it, (he wanted it) but doesn`t take a wage as he cannot afford to, I work full time elsewhere and am injecting cash into business every month.

I have a bank loan of 9k, arranged after the bank called in their overdraft and 7k due to HMRC after an accountants error.

I am currently paying HMRC monies each month from my own salary.

We are both at our wits end trying to keep business afloat but it is proving almost impossible and we are considering closing up and asking for early release from the lease, it only has 18 months to run.

Of course, this means that we have no chance of recouping any monies as nobody will buy a dead business and essentially walking away but with 16k of personal debt which I would have to pay off my salary.

I have no assets, rent my house and run cheap car, no savings either.

Just wondered if anybody could offer any advice or views.

[Crocdoc]

It very much depends on what you want the final outcome to be as there are various options . It would be possible to extend the repayment period by entering a joint Debt arrangement Scheme . Payment could be extended to a maximum period of 10 years depending on the level of disposable income. Alternatively and considering that you have no assets, Bankruptcy may be a route worth thinking about.

Edited July 4, 2012 by Crocdoc