It can be difficult to escape sole trader debt, as you’re personally liable for the debts of your business and don’t enjoy the limited liability that’s available to company directors. This means your assets, including your home, are at risk if you’re unable to pay suppliers, tax liabilities, or staff.

Your personal credit rating is also affected when you get into business debt. This can severely limit future borrowing as any defaults or formal debt procedures that you enter remain on your credit file for six years.

Escaping sole trader debt

You can escape serious debt in various ways as a sole trader.… Read more