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doldrum
Starting Member
6 Posts |
 Posted - 30 April 2010 : 14:58:07
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Hi there, I am new to this forum. I am in a complicated family debt issue and although it is not in the best interests of my pursuant, if the issue ends up in court, if I am ordered to sell my house it might be in my best interests to go bankrupt as this will ensure that my other creditors are not prejudiced.
My question is my business. In the scenario that I went backrupt, could I legitimately maintain my business in another country. My business is tourism and so my products are not sold in this country. I understand I cannot promote a business in the UK, but what about overseas? I have no business assets in the UK, nor abroad and I live puerley off of the turnover, renting facilities from supliers. Could I even sell the business to my wife as she is not implicated in the case?
I hope someone can help me.
Many thanks.
z. |
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InsolvencyQandA
Starting Member
United Kingdom
10 Posts |
Posted - 30 April 2010 : 15:36:52
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Hi z.
My first question is the company incorporated in the UK
If so then you need to be aware of the following as they are duties and responsibilities of a bankrupt.
1)You must not be concerned (directly or indirectly) on promoting, forming or managing a company or act as a company director (without permission of the court)
2) You must not carry on business in a different name from which you are made bankrupt without telling all those with whom you do business the name in which you were made bankrupt.
You can appoint another director but during your bankrupty you must not be involved in the running of the company or it may be deemed that you have broken your duty. Although you can remain an employee of the company.
In relation to a foreign registered company i am looking into that and will post a further reply later
Regards
Matthew
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 30 April 2010 : 15:50:06
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Hi Doldrum
My understanding is that the restriction simply says that you can't be involved in the promotion management etc of a company. It does not specify the whereabouts of the company, so arguably the rules apply to a UK bankrupt irrespective of where the company is based.
However, I would be interested to see what further info InsolvencyQandA finds
If you were to sell the business to your wife, and were subsequently made bankrupt, the OR or Trustee would have the ability to investigate the sale/transfer and challenge it if he believes it was done at an undervalue and this could mean you being subject to a bankruptcy restriction order if it was considered to be an attempt by you to put your assets beyond the reach of your creditors
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 30 April 2010 : 16:02:05
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My limited research (on a quiet Friday afternoon) is that the Company Director's Disqualification Act provisions only apply to businesses (not necessarily limited companies) based in GB, but it does specifically include companies incorporated outside GB if they have a place of business in GB
(and it does say GB, not UK) - hope that helps
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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doldrum
Starting Member
6 Posts |
Posted - 30 April 2010 : 16:43:17
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Ok thanks for the ideas so far. Basically the word company is not really correct as I have not registered it as such. It is a fledgling business that is growing, and looks promising for the future, as I have attracted the business of two or three potential suppliers of tour groups which could increase my turnover quite a lot in the near to mid range future. Basically all i want to protect is the good name of the 'company' and ensure that this years clients are looked after properly with the potential to grow in business in subsequent months and years. I currently operate from home, but all of my tours are based in non european countries. I have no assets whatsoever, and whilst I understand that I could not sell it at a lesser value than an OR would agree with, it doesn't really currently have any saleable value other than what income in provides me in excess of turnover which would currently be less than 5K per annum. The new deals would see turnover rise to potentially in excess of 70K per annum so potentially an income of 35K.
So, could I move the web domain to be hosted overseas? As this is my "shop" currently, it is the only thing I have to look after, that and some booked clients. |
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doldrum
Starting Member
6 Posts |
Posted - 30 April 2010 : 16:47:15
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| also, i am solvent apart from this dastardly family member who is demanding rediculous sums of loosely loaned money. i understand i could risk loosing my home, but this is not really the giant problem. i don't have a massive equity in it currently so the only thing i really want to protect is the name and growing goodwill of this business venture. |
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RHB
Senior Member
1159 Posts |
Posted - 02 May 2010 : 08:39:51
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| how much money do you owe this family member? Is it documented as a loan between you? Could you maybe give him/her a cut in the business instead? |
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doldrum
Starting Member
6 Posts |
Posted - 02 May 2010 : 08:53:41
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40+k. well, i was 'given' it loosely with the loose agreement that i would pay off debts to allow me to clear the decks for a new business venture. i have offered them a payment schedule equivalent to a mortgage term of 15 years for the same amount but they are refusing this proposal. there is no written agreement but their solicitor tells me they are legally able to make an immediate and full full "repayment on demand". i saw a solicitor who confirmed that this is a possible route. i cannot afford to pay a solicitor as i do not have enough disposable income as with my wife and my own earnings the solicitor told me we are above the thtreshhold for legal aid. (we jointly earn about 40k before tax).
if i was made bankrupt by the family member, my house has about 28-20k of equity. i currently have business creditors of around 11K so this would need to also be considered, so it is not really in the best interests of the fmaily member to do this, and the only way i can see them getting their money in full plus some interest is by accepting my offer. i think their solicitors seems to think otherwise however and seems to be pushing for impossible terms, i guess in under the guise that he is trying to make me insolvent. |
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doldrum
Starting Member
6 Posts |
Posted - 02 May 2010 : 08:55:15
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oops...just seen a typo..re housing equity please read 18-20 not 28-20! |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 02 May 2010 : 11:11:41
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Hi
The equity of 18 - 20k may be actually smaller than that.
An estate agents valuation could be significantly highher than its true value.
In addition the equity is half yours and half your wife's. So unless the loan was to both of you then the maximum they could pursue is 50% of the equity. With the roght presentation and groundwork you may find that your share of the equity is nearer to 4 / 5k.
You do need to clear up the business though. It is either a Limited company registered at companies house or your are a sole trader. You can continue to trade as a sole trader but if you accept deposits you would need to advise folk that you are currently Br - not the best plan.
You cannot be a shadow director as this is illegal,
You can be a director of a Limited company overseas - HOWEVER you cannot do ANY business in the UK at all during this year.
I would suggest you have an indepth call with one of the forum experts to go over your options and prepare a strategy moving forward.
The other scenario is that the family member place a charge on your house - but of course that locks you into the property for several years before you have any equity again.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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doldrum
Starting Member
6 Posts |
Posted - 02 May 2010 : 17:17:15
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Hi Paul,
Thank you very much for our conversation today, you have put my mind at rest as much as can be expected at this difficult time. I can now see a clear strategic path and look forward to working with you to bring that to a succesful conclusion.
Many thanks,
D. |
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business after banckruptcy
