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loadsamoneynot
Junior Member
United Kingdom
172 Posts |
 Posted - 01 September 2008 : 18:23:58
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Hi,
I hope that there is someone out there who has experience of this topic -
I operate as a sole trader - the business is profitable and solvent but on a personal level, I am deep in personal debt.
If I was to go bankrupt, would I lose the business - or is there a way that I could get a family member to front the business and I continue working as a employee ?
Many thanks |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 01 September 2008 : 18:37:39
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Hi there,
Im sorry i cant help you, but hold on and someone who can will be along soon to answer your question.
Keep Smiling
Jo :)
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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John
New Member
United Kingdom
73 Posts |
Posted - 01 September 2008 : 23:28:06
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Hi
as a sole trader you will be able to continue to trade and in bankruptcy you must trade your business under the same trading name as you did prior to bankruptcy.
If the business has assets other than tools of the trade, or capital, the OR would look at claiming these.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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loadsamoneynot
Junior Member
United Kingdom
172 Posts |
Posted - 02 September 2008 : 18:50:09
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Hi John,
Thanks for that but how will it work ?
What happens when a client pays an invoice - how do you operate the bank account etc
Many thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 02 September 2008 : 19:38:03
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Hi
in bankruptcy you should be able to set up a cash account (no frills) with one of the high street banks (Barclays / Abbey / Nationwide).
So you would have to trade through your personal account and state on your invoice that payments should be made to you and not the business name.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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loadsamoneynot
Junior Member
United Kingdom
172 Posts |
Posted - 02 September 2008 : 19:47:23
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Thanks John but I;m not sure if that would work.
What if I set up the business as a limited company with my wife as sole director - would that work ?
Would that be legal ?
Many thanks |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 September 2008 : 19:51:52
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Hi Loadsofmoneynot and welcome to the forum.
Yours is an interesting case as you have a profitable business, but are in trouble personally. I would suggest talking to one of my colleagues on the helpline who will be able to point you in the right direction in order to preserve your business.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 03 September 2008 : 10:02:38
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Hi
Effectively your business would 'cease trading' on the making of the bankruptcy order and all assets would belong to the OR. All book debt, fixtures, fittings, stock etc. The fixtures, fittings and stock can be bought off the OR, and there have been cases where the OR will allow you to keep minimal book debt in order to finance an ongoing business. You then start trading afresh, but you do have to still keep to the bankruptcy restriction until discharged, such as not obtaining credit of £500 or more without declaring your status.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Advice Please
