i am in processing of bankruptcy proceedings with partner following collapse of IVA and redundancy, however i have 2 questions!
1)I am now self-employed and am worried about what will happen to my business bank account - although there is very little money in the account - i do need the account to operate my business.
2) myself and partner have saved a small amount of money (as have been worried about redundancy for some time) and we have this money set asided to pay living expenses until i either earn enough through self employment or find a new job, i am only talking about £3k but this is required to pay mtg, utilities and costs of a new baby due to arrive in next 2 weeks. can someone offer any insight as to what i should expect when we sign our forms and finalize everything?
1) your current business bank account, assuming you are a sole trader, will be frozen. It's the banks decision as to whether or not they will allow you to continue to use the account post bankruptcy but it is unlikely. You will be able to open a basic account in your name post bankruptcy so your future invoices and other business associated documentation would need to display "brendan t/a whatever whatever". You then have to get any cheque payments made out to "brendan" and deposit the funds in the t/a account.
2) I have no doubt that unless you remove the funds prior to BR the £3K will be claimed by the OR as an asset. If you remove the funds you will need solid reasons why you have done this.
I take it your home is in negative equity and that you plan to keep it. If you don't plan to keep it you should stop paying the mortgage. If you do have equity in the property you may need professional advice to protect the property as much as possible.
what i should expect ?
Posted - 17 September 2008 : 14:19:41
