I would tend to agree with the advice that you have already received, completing an income and expenditure breakdown is the best place to start. It will be important to establish liability for the debts and to ensure that debts to the business and personal debts are recognised. In a similar fashion asset ownership can be established, if the £15000 cash is held by the business rather than personal savings then this money may not be available to repay your personal liability debts. One thing I strongly advise against at this stage is making any unnecessary purchases or moving funds without discussing with a debt adviser first. If you were to pursue the bankruptcy option then this could be viewed as a means of avoiding repayment to your creditors, this can carry harsh penalties, a Bankruptcy Restriction Order could be placed. Essentially that could mean that you would be classed as bankrupt for anywhere up to 15yrs. In order to provide accurate answers to your questions an adviser would need further information about you and your business. Is it a Limited Company and you pay yourself a wage as a Director? Is the £15000 in the bank the only funds available to you i.e. are you drawing any money as income from the business? As you can see a fairly complex and in depth assessment of your circumstances is required in order to ensure that you receive the correct advice.

Bankruptcy

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