Hi..If we go bankrupt because we cannot pay inland rev will we be unable to continue being self employed independent disributors which is our main source of income. We have an IVA which is on hold while we sort things out with HMRC. Can give loads more details...thanks!
You can continue trading as long as you're not a director of a limited company. However, your IVA will need to fail first and you'll need to present a certificate/letter of failure to the court with your bankruptcy petition.
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
you might also want to review the contract you have with the distributor organisation to ensure you are OK.
You would also need to declare any stock you held at the point of Br - and this would be handed to the OR or purchased back from them.
Last point worth cheching out is the banking. You will not be able to get a business bank account so you would almost certainly need to bank - and therefore trade - in your own name. I.E. you couldn't bank checks made out to Forever Living / Amway etc etc , so you need to get the ducks in a row first.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
Hi Thanks for your answers. So even though we owe tax from that income we got from the distributorship, would we just start paying income tax in the future from scratch from the day we go BR? Also if our IVA is failed do we have to declare ourselves bankcrupt or are we made BR and is there any advantage one way or another? My husband had a huge vinyl record collection that he has been selling over the last year which has kept us afloat, this is coming to an end now. The money we have had from the sales is on our bank statements, will this cause us any problems? We have no assets as we rent the house. We originally went for an IVA because of fear of BR (not understanding what it is plus being very depressed and stressed) + we thought our distributorship would be closed, we have asked the parent company about this recently and they say we can continue trading so long as our account is in order - it is! Thanks again [/quote]
can we be bankrupt and S.E. distributors?
Posted - 04 September 2008 : 15:09:19
