if i am bankrupt can my partner take over the business

blokes2

hi,
if i am made bankrupt, can you partner take over my business and pay me a wage while i do the work, instead of me doing the work and all the money coming direct to me , thus avoiding a bancruptcy order, just a point someone made to me in the pub last night

fc123

blokes2 wrote: »

hi,
if i am made bankrupt, can you partner take over my business and pay me a wage while i do the work, instead of me doing the work and all the money coming direct to me , thus avoiding a bancruptcy order, just a point someone made to me in the pub last night

You will have to cease trading then go BR.
OH sets up Ltd Company and you can be paid from Ltd Company.
Alternatively, you can trade as a sole trader from a cash account in your own name post BR.

It can get tricky if your current business has assets, stock, leases with personal guarantees etc. I would advise saome professional advice before jumping in if that is the case.

Nervousmother may be around tomo...she has gone through BR as SE.

nervousmother

It depends on your business, what stock and assets it holds, not much info here, if say you owned a construction company and had large plant equipment the OR would be interested in selling to pay your creditors,

If all your business consists of is you some small tools & a order book for jobs, then if it was me I would get the OH to open a ltd company and employ you before going BR. They would be able to open a business bank account and the BR would have little effect on business. Make sure the OH does some work for the business though like the book keeping and invoicing, they could then pay themselves a wage (keeping you on a smaller wage) reducing the amount of income you receive for IPA reasons. By them doing work for the business they wouldnt be acting as a shadow director.

It is still possible to run a business whilst BR, the only major problem we have had is running a business bank account through the co op cashminder..
We had to wait about 3 months for the revenue to issue another UTR number, and about the same time for them to give us a PAYE number too. But that is the revenue slow.

Like i say though, it depends on what your business does, you would not want the OR to think you had dispossed of business assetts before going BR (at one point the were talking about trying to sell our client list, we had to argue it was not worth anything to anyone as the clients would come back to us anyway)
Good luck with what way you decide, if you want anymore info you can PM me but I would need to know what you do.

fiveyearplan

blokes2 wrote: »

hi,
if i am made bankrupt, can you partner take over my business and pay me a wage while i do the work, instead of me doing the work and all the money coming direct to me , thus avoiding a bancruptcy order, just a point someone made to me in the pub last night

I don't see how this would help you not needing to go bankrupt. The debt would still be there. Is it (the debt) in your personal name or a limited company name? Either way the debt would still exist and someone would still be liable.

ps - I went BR with a ltd company, had a sole trader business and was on PAYE by the time of my BR.

maxmycardagain

blokes2 wrote: »

hi,
if i am made bankrupt, can you partner take over my business and pay me a wage while i do the work, instead of me doing the work and all the money coming direct to me , thus avoiding a bancruptcy order, just a point someone made to me in the pub last night

are you a ltd company?

if you personally go BR you cant continue as a director OR "take charge of the day to day running" of the ltd company

if ltd, you can be both a director (unpaid) and paye employee, but not a director post-BR

maxmycardagain

fc123 wrote: »

You will have to cease trading then go BR.

OH sets up Ltd Company and you can be paid from Ltd Company.
Alternatively, you can trade as a sole trader from a cash account in your own name post BR.

It can get tricky if your current business has assets, stock, leases with personal guarantees etc. I would advise saome professional advice before jumping in if that is the case.

Nervousmother may be around tomo...she has gone through BR as SE.

no he wont, a SE BR can carry on trading, thousands do and have, and his BR wouldnt affect how his LTD comp traded apart from him having to resign as a director

blokes2

hi thanks for all that.
i am not a LTD at present and never have been , i am self employed. I am a musician and the only "tools i have my sound equiptment.
although i am serious financial difficulty and will never be able to pay everything back , this summer sees the best work i have had for 4 years. thats why i asked the original question

fiveyearplan

blokes2 wrote: »

hi thanks for all that.
i am not a LTD at present and never have been , i am self employed. I am a musician and the only "tools i have my sound equiptment.
although i am serious financial difficulty and will never be able to pay everything back , this summer sees the best work i have had for 4 years. thats why i asked the original question

I sent you a pm.