I keep hearing conflicting reports about business (self-employed sole trader) after bankruptcy. I understood you must continue trading under the old name (rather than setting up a new business). Now I hear that "If you are self-employed, your business is normally closed down"). Which is correct?
As a sole trader you can continue to be self employed after petitioning for bankruptcy but you must continue in the same trading name. In order to change the trading name in bankruptcy you must seek the permission of the court and have a good reason.
There are business that are closed down at the point of bankruptcy but these would include businesses where there was a lease ( the lease value and debt now reside in the bankruptcy and the OR would usually visit the oremises to close down the business )
The business may also be "closed down because the official receiver now owns everything of value so if there were stock, fixtures and fittings, or other assets the OR is likely to collect them and dispose of them at auction. You would always be offered the chance to "buy them back" but the OR would want to know where the £ came from.
You would however be allowed to retain specific tools of the trade.
I keep hearing conflicting reports
Posted - 14 September 2009 : 18:32:54
