Self Employment & BR

JennyGiraffe

Hi,

Does anyone have any experience of going through BR self employed? What sort of feedback/reaction did you get from the OR about carrying on, and were they interested in any funds within the business or future profits?

Thanks

ohwell

Hi Jennygiraffe,

I have just gone bankrupt and had the or interview this week. The OR allowed me to keep my van and equipment even tho my earnings from it are not fantastic at the mo and I am also employed in a completely different job part time. They wont usually take tools of the trade etc, however you have probabally already heard this. They will be happy for you to carry on I would expect especially if this is your only income. Any future profits will all go towards your IPA. You will need to provide account details I would think. Regarding funds within the business, I just dont know sorry. I have only been trading for a short while. I hope this helps and good luck.

JennyGiraffe

Hi,

Thanks for your reply.

I'm just wondering whether it's like their version of a 'fresh start' for the business, i.e they take any money in it already and then leave you to effectively start again. I know they wont take the computer etc but it's more the money I'm owed and any money in the bank that I'm worried about as I would need this to carry on trading, without it the business would fold.

ohwell

Crumbs I cannot answer that. there maybe someone on here more qualified than me to answer, however I would seek some advice, cccs or payplan.

nervousmother

My hubby went BR and he is self employed.
He was told to 'close down' the business on the day of the BR but could re-open it the next day (in the same name) any funds what were in the bank on the day of the BR went to the OR. (this included money he had saved for the tax man)
He earns more money at different times of the year, This Jan was a very busy period and put alot in the bank, but he knows February and March wont bring in any income at all....Im not sure how they will work out an IPO,

He also lost his business bank account, and cant open up another, at the moment he is putting funds into a co-op account and i think they may be turning a blind eye. however he was told if it was spotted they would shut down the account. (why cant he have a business account? he never had a overdraft on it before???)))
Anyone who owed him money before the BR now owes it the the OR.
He has started again, almost from scratch, they showed a bit of interest in his office equipment but when he said how little it was worth their interest wained. However they do think his 'customer list' is worth some money and may try to sell it. If they do he wont have any way of making an income. He will be discussing this on Tue with the receiver.
His business provides us with a decentish income, he put alot of work into it. In effect you do start your business agian after BR,
hope this has been of use.

JennyGiraffe

Hi nervousmother,

Yes that is useful, pretty much confirms my fear! I wouldn't have the cashflow to be able to start again as we do a lot of work for the council and they are so slow at paying, yet the staff need paying in the meantime, so by losing the funds in the bank account it would make it impossible.

Seems really wrong that four other people are going to lose their jobs, and probably their final months wages, just because of me making what turned out to be a bad decision 3 yrs ago.

I'd already tried looking for a business bank account, the only one I could find you can pay cash/chqs into but you only get a cash card to get it back out, so no DDs, cheques, debit card etc. If this would help your husband not use his Co-op account let me know and I'll post a link.

Thanks

Confused_Mother

JennyGiraffe wrote: »

Hi nervousmother,

I'd already tried looking for a business bank account, the only one I could find you can pay cash/chqs into but you only get a cash card to get it back out, so no DDs, cheques, debit card etc. If this would help your husband not use his Co-op account let me know and I'll post a link.

Thanks

I am also in a similar situation, could you please give details of this bank account. Would they use a credit check to obtain this as I have a terrible file. Thanks in advance.

JennyGiraffe

Hi ConfusedMother,

The site is https://www.lessthanperfect.co.uk - it was recommended to me by the business manager that I spoke to at the Co-op - the basic business account that they offer is suitable for bankrupts, and then there's a slightly better account that some people with adverse credit but not bankruptcy might be able to get.
They do charge a fee for setting it up but offer a money back guarantee if for any reason you're refused.

Hope this helps.