I Have My Own Business. How Does Going Bankrupt Change Things With The Business?

The following are some common examples of third parties having dealings with a bankrupt .

Property owned jointly with a bankrupt
Where a person owns property jointly with a bankrupt, the bankruptcy operates to split the joint ownership, and separate interests are then held in the property by the non-bankrupt co-owner and the Official Assignee.

Leases to the bankrupt
A covenant in a lease for forfeiture of the lease in the event of the lessee's bankruptcy is void as against the Official Assignee. On the other hand, the Official Assignee may, with the permission of the court, disclaim a leasehold interest which contains onerous covenants at any time within twelve months from the date of the bankruptcy order, or later if the court permits. In that case, the landlord may make a claim as a creditor in the bankruptcy for any damages incurred by the disclaimer.
 
However, the court may, before considering the Official Assignee's request, require the Official Assignee to put the landlord or others affected on notice of the request, and may impose conditions on any disclaimer. The Official Assignee is precluded from disclaiming a leasehold interest where a party affected has requested him in writing to decide whether or not to disclaim, and the Official Assignee has not replied within twenty-eight days indicating an intention to disclaim. A landlord who has distrained goods of a bankrupt lessee within three months before the bankruptcy order will share in the proceeds of sale of the goods on an equal footing with the preferential creditors of the bankrupt.

Partnerships
A partnership in which the bankrupt has been involved is dissolved by the bankruptcy, unless the terms of the partnership provide for it to continue.

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