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Max Lowry
Max Lowry, Advocate
Category: Bankruptcy Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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I have a statutory demand against me for £13K and being

Resolved Question:

I have a statutory demand against me for £13K and being threatened with Bankruptcy petition. I am the sole director of a new company and home owner (equity in my home is over £100K) which I would like to protect. I am fighting against the the petitons
against me as I believe I have solid case to prove I do not owe this debt...but if I was to lose my case does this mean I lose my new business and home?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Max Lowry replied 2 years ago.
Hi, your company would still be able to continue but you would need to appoint a new director. The law does not allow a bankrupt person to be a director. The company's assets belong to the company.
You are however at risk as to anything which you have a legal interest in for example a car, a house, an expensive watch or painting. These assets would vest in your trustee in bankruptcy. However, if you only have a £13k debt you could dispute the petition against you but raise money from your equity to pay off the debt if you lose. It would be cheaper to raise the money before hand because if you are made bankrupt you not only lose your director status but also will have to seek an annulment of the bankruptcy and the money you will need to raise must be from third party funds (otherwise the government will impose a tax on you in the bankruptcy).
I hope this helps.
Max Lowry and other Bankruptcy Law Specialists are ready to help you
Customer: replied 2 years ago.
Thanks Max much appreciated