That would really depend on how the Company was set up, ie if it was a Limited Company or if they were both Sole Traders and if there were any personal guarantees put into place.

If you enter into bankruptcy they can include all debts that have been incurred by the business such as the council tax etc but I would strongly advise them to seek professional advice.

If the Company was Limited they could call Business Debtline on 0800 197 6026 or via their website at www.bdl.org.uk

If they are both Sole Traders they can contact a debt advisor who will look into their situation and advise accordingly and find them a solution that suits their needs.

With bankrutpcy, it should not affect you if you are in no way involved with the Company. In bankruptcy, it is the job of the Official Receiver/Trustee to realise any assets, including his share of any assets that are owned with someone else. If only he is going bankrupt they can only look at his share of the equity. For the majority of people this is 50% of the equity but it can depend on how the mortgage payments have been paid, deposits made when purchasing the property, along with any alterations to the house etc but again this is something you can take advice on.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're looking for an alternative to Bankruptcy, Debt Advice Foundation provides a free, confidential helpline and can advise you of all your options. Click here to find out more.