Business Debt With Ex-Business Partner

[chilliphoto]

Hi,

Ive had a bit of a chaotic year, after having my business partner con me out of near enough 8k i have had baliffs looking for him with my name attached for a debt of 5k for business rates, which to be honest i was stupid enough to believe he was paying.
The baliffs refuse to go after him because as ive been told by the baliff i am closer and i inherit his debt so to speak, now he is still trading under a new business name and i because of my level of loss have been forced to sign on until i can find some work i am skilled in, which after being a photographer since 16 i'm now in my mid 20's is very difficult. I tried to set up payment with them and now they demand the full fee in 48 hours, which having no savings i am forced to borrow off my sister.

Is there any way i can goto small claims for this debt? or is there anything i can do to even get half back as it was in both our names, or am i solely responsible now?

Thanks

[ploddertom]

Re: Business Debt With Ex-Business Partner

What status did you trade as?

[chilliphoto]

Re: Business Debt With Ex-Business Partner

We were not a ltd company we were sole traders, both our names were on the rent, and on the business bills etc

[ploddertom]

Re: Business Debt With Ex-Business Partner

The bad bit first.
Being sole traders means the Council can chase both of you together or separately - Joint & several liability. They can indeed make you pay the whole debt and when it is passed to the Bailiffs they may attend both your business address and your residential address. If you wish to make your partner pay his share under this scenario then you would ave to take an action out against him but would imagine you are wasting both time & money doing so.

The good bits.
I assume you are claiming some type of benefit and are unemployed, in which case you may be classed as vulnerable according to the National Standards for Enforcement Agents Useful Links - Legal Beagles Consumer Forum click on Item 2 and scroll to page 9. To claim this you need to provide some documentary evidence and send to both Council & Bailiffs. Some Benefits may have an Attachment to them for minimum payments. More likely if successful they would switch their attention to your ex-partner.

As for the debt owing. You need to speak to someone at the Council and ask the following questions:
1 - how many Liability Orders they have against you
2 - the dates they were obtained
3 - the addresses they were for
4 - the period of time each covers
5 - how much each one was for
6 - how much is still outstanding
7 - the dates they were passed on for enforcement

Whatever happens do not allow the Bailiff entry to your home and whenever possible do not speak to him on the phone unless you can record the call.