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Lynn.ccp
Starting Member
1 Posts |
 Posted - 29 September 2009 : 17:43:48
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| I have a small furniture business ( sole trader)in rented property. I have no assets except what is in the business.Will I be able to carry on trading? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 29 September 2009 : 20:02:09
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Hi
there are a few things to consider here.
As a sole trader you will be able to continue trading while bankrupt, BUT you absolutely must tell anyone lending you money - and certainly anyone leaving a deposit for furnoture that you are currently bankrupt.
If the property is leased it will be treated differently to rented as the Official Receiver needs to be involved in a formal lease because of the financial liability. If it is on an informal rental agreement then this can be overcome more easily.
lastly and probably the most difficult to deal with is that at the point of bankruptcy your assets ( i.e. stock ) belong to the official receiver and as such are not yours. You would be given the opportunity to purchase them back at auction value.
What type of furniture ( new, used, antique, pine etc etc ) and what is the trade value of the stock?
this will give a picture of the size of the problem
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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lynn5854
Starting Member
United Kingdom
6 Posts |
Posted - 30 September 2009 : 10:47:55
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Hi Paul, my stock is mostly pine and fairly depleted! We have not been able to make more when it has been sold, so don't have much left. I do however have quite a nice kitchen showroom which has taken me a long time to make and fit.. if I lose that most of my trade would cease.We specialise in solid wood handmade furniture and obviously people want to see examples of what they are buying. I know we can turn this business around.. I am advertising on 2 sites and have had an excellent response, I have several quotes pending which look quite promising, but most will be for after xmas.My busness is about 5 mins from where the rover car works was.. when they crashed most of the business in the area either closed or had severe dificulties ( hence the IVA! )There is very litle footfall where I am, I am not in the ideal location for my sort of business, but can't afford to move because of finances, but things are picking up a bit and I am sure will get better over the next couple of years.I also employ three people on a part time basis and couldn't make the furniture without them!
Re. my lease, the lease actually ran out 10 years ago, but is being " held over" the landlord has refused to remove my ex's name from the lease so I havnt renewed it.
How would I work out auction prices, this would then give me a better idea as to how much my stock may be worth.
I really would appreciate any advice you could gie me, I am feeeling a bit apprehensive at the moment, I don't want to lose my staff.. they depend on me and we have all worked together for more than 20 years, because we are so specialised I don't think it would be easy for them to find other employment.
Many thanks Lynn.
l,elliott |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 September 2009 : 13:39:06
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Hi
thanks for the update , you also mention an IVA? Are you currently in one as this would change things .
Additionally if you make the furniture there is the question of equipment which depending upon age etc which may have a value and might not be considered tools of the trade because of the value.
The lease element may now not be a huge problem but because of the size of the business we also need to discuss VAT registration in bankruptcy, employing staff, and how to continue with them etc.
I would strongly recommend you speak to a preofessional who has experience with both business and personal insolvency and they would be able to go over everything to make sure that nothing is missed and help you chart a way forward.
The best place to start to find someone would be a professsional forum expert. I would suggest you need to sit down with someone and go through things face to face over a coffee and get a plan for moving forward.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 September 2009 : 13:40:45
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The bespoke side of your business does have its ups and downs and obviously the Rover situation has had an impact.
We helpef a specialist carpenter earlier this year through a similar situation and without the stress of the debts he is going from strength to strength.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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lynn5854
Starting Member
United Kingdom
6 Posts |
Posted - 30 September 2009 : 14:27:09
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Hi Paul, my IVA was failed as I was in arrears, and they are making me bankrupt.My machines are old and would only be worth scrap value,but they are all essential. I am not VAT registered, turnover is too low at the moment. Can I just re-employ my staff after the bankruptcy?
One other problem, my accounts are not up to date by 2 years as I couldnt pay the accountant. Should I pay him and try to get things sorted out asap?
Many thanks Lynn.
l,elliott |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 September 2009 : 15:29:10
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I would really recommend that you get full advice rather than just peacemeal.
Do you have a bankruptcy hearing date yet?
I also suspect that unless handled properly the business is likely to be closed down.
The accounts will also need to be completed at some point but probably not worth paying to have them done yet.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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lynn5854
Starting Member
United Kingdom
6 Posts |
Posted - 30 September 2009 : 16:37:37
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Hi Paul, no-no hearing date yet, appartently it is with the solicitors.
Problem about advice is no funds..would I be able to free face to face advice anywhere?
Thanks Lynn.
l,elliott |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 September 2009 : 17:30:05
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Hi Lynn
People are usually more worried about paying for advice than the consequences of getting it wrong.
Most professionals won't charge to meet and discuss the situation.
The reason for this is that we often need to fully understand the whole picture before specific advice can be given.
For example we usually get paid with coffee & buscuits at the meeting - and we are dilligent about collecting without fail.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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lynn5854
Starting Member
United Kingdom
6 Posts |
Posted - 30 September 2009 : 17:59:31
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Hi Paul, I'm sure that I could manage a piece of cake even!! Do your firm have ( or recommend)anyone in Birmingham? Thanks Lynn.
l,elliott |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 30 September 2009 : 21:10:54
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Hi
Now you are talking. Not allowed cake at home so love to get out.
I am in the Midlands on Tuesday, but could also be there on Friday if needed.
If you need to contact us directly you can do so via our web page.
take care
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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lynn5854
Starting Member
United Kingdom
6 Posts |
Posted - 01 October 2009 : 13:23:12
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Hi Paul,
Tuesday or Friday would be great.
Many thanks Lynn.
l,elliott |
Edited by - lynn5854 on 06 October 2009 12:20:31 |
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debtinfo
forum expert
2826 Posts |
Posted - 01 October 2009 : 21:06:55
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| prob best to edit these details off public view lynn and pm paul |
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jeff2009
Starting Member
2 Posts |
Posted - 07 November 2009 : 12:21:12
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| **Spam, post deleted** |
Edited by - Skippy on 24 February 2010 09:20:36 |
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Topic |
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I have a small furniture business ( sole trader)
