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Steve65
Starting Member
34 Posts |
 Posted - 04 January 2010 : 15:22:19
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I am planning on going BR in the next couple of months but just getting a few things in order first.
I stepped down as a Partner of a financial services company in November and I am likely to have my contract terminated by the Network that the Partnership comes under due to my debt problem but going through form 6.28, it asks about involvement in a managerial capacity in the last 5 years and so I have to put down that I was a Partner. I am being replaced by another Partner and my name is being taken off the bank account etc. The account is in overdraft but that debt is being taken on by the existing and new Partner.
Having read something on here about Partnerships, if I am no longer authorised and have no dealings with the Partnership, does it still get closed down because of my BR even if I no longer trade? The company has no assets.
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John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2010 : 15:56:04
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Hi
is it a company or a partnership as you refer to it in both ways?
If it's a limited company you were a director.
If it's a partnership you were a partner in a business (not a company).
The rules are different dependant on your answer.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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Steve65
Starting Member
34 Posts |
Posted - 04 January 2010 : 16:06:17
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Hi John
Apologies for the confusion in my post. It was a Partnership.
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John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2010 : 16:19:19
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When you stepped down as it were did you go through any formal process at all?
Is the matter recorded anywhere or is this just a verbal agreement?
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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Steve65
Starting Member
34 Posts |
Posted - 04 January 2010 : 16:32:20
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The Network that the Partnership comes under for compliance and FSA reasons was informed that I have stepped down as a Partner. This was done by email and I have emails with their reply. I am now officially classed as a Mortgage Adviser to the Partnership as I am no longer a Principle person and as such had to sign a new contract to reflect that. If a letter from the Network was needed as further proof, that could be arranged if needs be.
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John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2010 : 16:41:36
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Hi ok thanks
firstly you are looking at section 1.17 of the 6.28 which is not relevant to you so just enter N/A.
Section 2.1 asks if you have been in a partnership, or a sole trader, within the last 2 years.
Therefore this section is of course relevant to you.
Complete the section and have something in writing from the accountant to show that the liabilities exceeded the assets at the time you stepped down.
Enter a note in section 13 of the SoA (additional information) referring to this document and why.
I would doubt the OR would do much more than check this with the accountant and leave it at that.
Two further points to note.
You must wait 3 months and one day from the date you stepped down to declare bankruptcy from your home address. Any less and you should declare from the trading address of the partnership which of course could be an entirely different court.
Secondly, the replacement partner is not liable for any debts the partnership has incurred pre his joining. Make sure you enter the details of the business overdraft in section 4 unsecured debts, just to be sure.
Hope this helps.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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Steve65
Starting Member
34 Posts |
Posted - 05 January 2010 : 11:57:06
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Thanks John for that. I would prefer to actually declare BR from the work address ( I wasn't aware I could) as my girlfriend doesn't want her address where I have just moved to, being published in the London Gazette but how would declaring bankruptcy, impact on the business that will continue running from that address, if at all?
On another point, I am currently paying £5pm token payments to all my creditors which I have arranged myself. I took advice from the CCCS and they said that I should pay £1 but I have tried to pay more. The CCCS said after going through a budget planner with me, that my essential outgoings exceeded my income over a 3 month average and that I had a negative. My outgoings were £1258pm (This obviously excluded my debts) and my average income was £785pm for the last 3 months leaving me with a deficit of £473. This has improved slightly and having moved in with my partner, my outgoings will be around £800. I have another telephone interview with them tomorrow to go through my new budget planner but I remember when I phoned them recently for something else, they advised I couldn't go bankrupt as I couldn't actually have a deficit in my expenditure and that it had to equal zero at worse. I thought the whole point of BR was the fact that I couldn't pay my debts because of my low income these last 6 months and I am actually insolvent. Have I missed something somewhere?
Barclaycard seem to be playing hardball and through Mercers (their Debt collection agency) they're threatening visits to what was my home address (I don't know if I should advise anyone of my creditors of my new address, as all my mail is forwarded anyway)but it dawned on me yesterday as I was filling in my BR forms about Q3.6 have I tried to improve my postion with a creditor. I had a second Barclaycard and as the balance was alot smaller, I agreed to pay them 1% (£47pm)but I've got a horrible feeling now that this was a mistake and it could cause problems for me when I do go BR.
Any suggestions?
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RHB
Senior Member
1159 Posts |
Posted - 05 January 2010 : 12:04:27
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| If it is a personal bankruptcy would he not need to put his current address John? |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 January 2010 : 21:16:26
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Hi
firstly, whether you have disposable income or not has no bearing on being in a position to declare yourself bankrupt.You have to demonstrate through the Statement of Affairs that you are insolvent, i.e. your debts outweigh your assets, nothing more.
I would keep the new address to yourself until bankruptcy has been declared.
You have inadvertantly paid more per month to one creditor than the others. This will not cause you any problems it was a genuine mistake and at the time of the agreement bankruptcy was not your planned route.
Q3.6 includes the words "with a view" and " in case you became subject to bankruptcy proceedings" which means a deliberate act. The question is generally asked to see if you have repaid a relative or friend deliberately in favour of other creditors. Which you have not so don't worry.
Depending on how much we are talking about the OR can, if they wish, recoup that money from Barclaycard so as to distribute the amount pro rata but I doubt he'll bother.
You haven't done anything wrong, none of this was planned so try not to worry.
Hi RHB:
If you are a sole trader or partner in a partnership you must declare bankruptcy from the trading address not your home address.
Obviously the two addresses could quite easily be in different areas as far as court jurisdiction in bankruptcy is concerned.
Likewise you must declare bankrupty from the address which has been your "centre of main interests" for the greater part of the 6 month period immediately preceeding the day the court receives your petition.
Therefore, despite the fact that Steve is no longer a partner in the business, he has been for the greater part of the 6 months preceeding, until his resignation (or stepping down) is 3 months plus 1 day passed.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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debtinfo
forum expert
2826 Posts |
Posted - 05 January 2010 : 21:33:17
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| He must put his current living address if it is a individual bankruptcy, he must also declare any addresss where he has traded from recently, People in the OP's situation will usually have at least two addresses on their bankruptcy order |
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debtinfo
forum expert
2826 Posts |
Posted - 05 January 2010 : 21:36:20
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here is a full list of what must be in the the title description
4.18 Title of proceedings and any defects in that title
The petition must provide information about the debtor to ensure that he/she is correctly identified [note 4].
The matters to be stated are as follows :-
his/her name, place of residence and occupation (if any),
the name or names in which he/she carries on business, if other than his/her true name, and whether, in the case of any business of a specified nature, he/she carries it on alone or with others,
the nature of the business, and the address or addresses at which he/she carries it on,
any name or names, other than his/her true name, in which he/she has carried on business at or after the time when the debt was incurred, and whether he/she has done so alone or with others, and
any address or addresses at which he/she has resided or carried on business at or after that time, and the nature of that business.
If the debtor has at any time used a name other than that referred to in (a) above, that fact shall be stated in the petition [note 5]. These particulars determine the full title of the proceedings
If anything is not included ther the OR will apply to the court for an ammendment of title and re advertise |
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Steve65
Starting Member
34 Posts |
Posted - 07 January 2010 : 09:45:47
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Now I'm confused as one says one thing and another says something else. Yes, this is personal bankruptcy, the Partnership will continue trading in the same name with a new Partner replacing me and I will have nothing to do with it anymore as I will lose my job under FSA rules.
If I was to use a home address, is it possible to use the address I left 3 weeks ago as all my things are still registered there but I just have it redirected by the Post Office (all except the Council Tax which I have cancelled the Direct Debit and they have written to me to ask if I'm living elsewhere)or do I have to use the address of where I am now, which is my girlfriends place but she's reluctant to have any BR registered there because of the address being advertised.
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RHB
Senior Member
1159 Posts |
Posted - 07 January 2010 : 13:53:01
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| I am sure you have to give your current address. |
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debtinfo
forum expert
2826 Posts |
Posted - 07 January 2010 : 14:18:36
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you will need to put your current address AND your previous address AND your previous trading address.
Any address you move to during your bankruptcy will also show on the IS online register |
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Steve65
Starting Member
34 Posts |
Posted - 07 January 2010 : 19:34:51
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Ok, many thanks again for the advice.
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Topic |
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Partnerships
