My wife and I are self employed but our debts have spiralled. It looks like an attempt at an IVA has failed. If we went bankrupt could we still keep our business-it does very well and is well established. many thanks
I`m new to the forum and no expert apart from the fact that I am self employed, and I`ve been made bankrupt last week by Revenue & Customs. I too attempted an IVA but the R&C would not support it, I was told by the firm trying for my IVA that once I am made bankrupt my business would end, although I could start another business straight away doing the same thing but it might be difficult to get another vat number without giving them a `bond`. My accountants say the same aswell. I`ve not heard from the OR`s yet so I`ll know the full facts as to how they`ll treat my case then...
in theory one can continue trading as a self employed person during bankruptcy however there are a number of issues that if dealt with prior will allow you choices.
at the time you go br the official receiver will:-
1. Own all your stock, however they may accept a market offer based on auction prices to buy it back
2. own your lease so will definately close your premises down. this can be overcome if there is no value in the lease ( quite normal these days) so provided that you get things in the right order you may be ok
3. own rights to your business name / web page etc etc etc , although they may well now put a value on these.
Fundamentally they are interested in assets that can be realised for the benefit of the creditors.
I would strongly suggest you have a conversation with an expert
in theory one can continue trading as a self employed person during bankruptcy however there are a number of issues that if dealt with prior will allow you choices.
at the time you go br the official receiver will:-
1. Own all your stock, however they may accept a market offer based on auction prices to buy it back
2. own your lease so will definately close your premises down. this can be overcome if there is no value in the lease ( quite normal these days) so provided that you get things in the right order you may be ok
3. own rights to your business name / web page etc etc etc , although they may well now put a value on these.
Fundamentally they are interested in assets that can be realised for the benefit of the creditors.
I would strongly suggest you have a conversation with an expert
My wife and I are self employed
Posted - 09 March 2009 : 21:31:40
