i am self employed. i got a loan of £20,000 to start up my shop in march and it has now just closed as we are in too much debt and cannot afford to pay anything. we are still trading online but not making anywhere near enough to cover it. if i decided to go bankrupt would my personal and business debts all go in together? could i carry on trading on line or would i need to sign the business over to someone else?
if you are a sole trader then yes your business and personal debts are all wrapped up in bankruptcy as it were. Your shop would likely be closed down very quickly. You would be able to continue to trade online but it's questionable as to what would happen to your stock as the OR may claim it if it is paid for and if it isn't ten your suppliers may reclaim it.
If your business is you Trading As ( i.e. not a limited company) then you are able to continue to trade during Br provided that you maintain the same trading style.
However any stock would be lost to the Official Receiver unless a third party were able to make an offer to the OR for the stock. Secondly have any of your suppliers got a "Retention of Title" which means that the goods are theirs until you have paid in full?
What type of business are you in ?
You could do worse than speak to a specialist because there may well be other options available to overcome the difficulties.
Paul Johns Assisted Bankruptcy Specialists Reviva UK
For a Free Impartial Review before taking the leap call me @ Reviva UK www.revivauk.com
Thanks for the advice. I spoke to somebody yesterday who gave me some advice then of course I thought of loads more questions! If I sign the business over to my husband who is no longer living with us then would this business come into bankruptcy? I opened a pet shop but also started an eBay shop. The retail shop did not take off but the eBay shop isn't doing too badly. Obviously I would need money from the eBay shop for my rent etc but would I then not have an income but have contributions towards bills from my childrens dad? This would enable me to carry on trading but in his name as I am not allowed to trade on eBay or have a paypal account if I don't have a business bank account which I would obviously lose in becoming bankrupt. Thanks very much for your replies!!!
I suspect that we had a phone conversation yesterday and perhaps it would be useful to continue the conversation so that you can get the rest of the answers
if you haven't still got my number i would be happy to call you again.
Paul Johns Assisted Bankruptcy Specialists Reviva UK
For a Free Impartial Review before taking the leap call me @ Reviva UK www.revivauk.com
I didn't think to store your number but it would be great if you could call me again. I understand all the basics that you told me its just little what ifs and stuff I need to know. Thanks!
would my personal and business debtsbe combined?
Posted - 28 October 2008 : 15:32:29
