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Personal Guarantees Archives - Bankruptcy UK



Divorced, pub debts and now bankrupt ..

If you have a Pub and go bankrupt are your debts paid off even if you got paid out in a divorce settlement i.e. would i have to pay the creditors from my settlement? I’m anxious to avoid losing the settlement to the Official Receiver.

There are a number of issues here. Are you a Director or Self Employed? Are they the pub’s debts or your personal debts? Do you have a lease in your personal name or, if not, have you signed any personal guarantees with the pub chain?

We can’t really give a definitive answer until we know more, but if you are personally liable then the divorce settlement is under threat. We have had a spate of similar enquiries recently and in all but one of these, Personal Guarantees had been signed and the individuals were personally liable. If you have somehow avoided this and are a Director rather than Self Employed then you might have dodged a bullet, but we need to know more.

Bankruptcy UK will guide you seamlessly through the bankruptcy process as we have been doing since 1998. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

Do I include the debt from my limited company in my bankruptcy?

No you don’t as a limited company is a separate legal entity. The only exception to this is if you have signed Personal Guarantees for company loans, something the banks do more and more often these days. Please note, you will also need to stand down as a Director of any limited companies during the term of the bankruptcy. If you call us we will email these forms to you.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

Two questions about bankruptcy ….

1. If my limited company closes will it affect my personal credit rating. 2. I only own 50% of the business, could I buy myself out of 50% of debt?

A limited company is a separate legal entity to an individual and debts registered against the company do not reflect on the Directors’ credit ratings, nor are they personally responsible for the debts. The exception to this is where Personal Guarantees are signed with a bank – if the debts are defaulted on, the individual is personally liable and it will definitely affect their credit rating. Regarding the second question, this depends on whether you signed Personal Guarantees or not. If not, you do not personally owe anything to anyone.

Call us for a informal chat about your circumstances or for bankruptcy help on 0800 5977 977 or 01425 600129.

Liquidation And The Bankruptcy Process

Telephone business advice and support for business owners and directors looking for support and assistance. 0800 5977977

As a limited company, if we decide to decalre bankruptcy what are the consequences


You need to remember that you and the limited company are separate legal entities and you would only be liable if you signed Personal Guarantees. You would need to stand down as a Director for the term of the bankruptcy. You could re-appoint a stand in Director during this period or close down the company completely. This is a service we offer – you are welcome to call us on 02380 119066 or 0800 5977 977 if you would like to chat about this.



Bankruptcy UK

Bankruptcy UK