SA Bankrupt Business Partner - Liable for Loan Agreement?

[pianissimo]

My business partner and I took out a business loan. My business partner then moved overseas and has decided to not come back to Australia nor pay any of his financial obligations. I changed the business to my name and therefore changed the business to a sole trader - therefore I have a different ABN now.

The paperwork for the contract was signed only by my business partner, apart from me signing as a witness. I also signed on the joint bank account but no details of my name were on the contract. Of course the partnership ABN was listed on the paperwork.

I am guessing that I am liable for the loan agreement, but I am wanting to confirm that that is truly the case?

Many thanks

 

[Ivy]

Hi there,

If you weren't named on the loan, then I can't see why you would be personally liable. However, what is the security for the loan? Was it your joint business? Or another asset?

 

[pianissimo]

Hi there,

If you weren't named on the loan, then I can't see why you would be personally liable. However, what is the security for the loan? Was it your joint business? Or another asset?

Well, when we applied for the loan I gave them my work details, my partner gave his information - I'm assuming they ran the numbers and gave us the loan. The loan was for the particular items that formed part of the business.