Personal Assets and Liabilities

Unlike a director of a Limited company, a sole trader is personally liable for any debts owed by both himself personally and by
his sole trading business.

As a sole trader is personally liable for business debts, business creditors can attack personal assets as well as the business
assets when trying to obtain repayment of their debt.

In the same way, business assets of a sole trader can be pursued by personal creditors.

Due to this, when in financial difficulty a sole trader usually not only worries about the implications on his business, but also
losing his home and personal property.

The personal difficulties section of this site explains about personal assets and protective steps that can be taken to safeguard
them.

If you want any further information please contact us.