6 hour interview with OR and told expect a BRO

fatbelly

kew63 wrote: »

If he got a BRU would it be for years & years ?

Just so worried about this. We have answered the OR as truthfully as possible, and provided bucket loads of information so she can see he's telling the truth, but it comes down to whether he should have thrown in the towel and realsied his optimism was misplaced.

Thanks for any advice

Kew - I think that's all you can do at this stage. You can't change what's been done. You can only be honest and open about it, and why it happened as it did.

As I wrote before, most BROs/BRUs are for two or three years and they're still relatively rare considering the numbers going bankrupt.

We can't predict what will happen but we can support you through it - please keep posting.

fiveyearplan

I probably should have gone BR years ago if that was the case. Not knowing your whole situation I would probably fight the BRO. If you were trading and not using credit but still had enough money to live (albeit not pay your debts) I don't see why you should have stopped trading. What were you supposed to live on? Did they want you to sign on benefits? It doesn't make sense.

debtinfo

Hi, just thought i would give a bit of info on the thought process why BRO's are sought against traders for two particular common reasons.

First is trading whilst insolvent - That is when you know you are insolvent (or ought to have known) that you continue to trade. Usually people continue to trade in order to provide the basic needs for the famil and most people would think of this as reasonable. However since many business take materials on account or pay subcontractors in arrears it is thought that once you know that your future income will only cover your needs and not be able to pay suppliers etc then you should no longer take any new business on and you would effectivly be stealing from the supplier. (again when you know you have got to this point is the hard part as money from job A does not always go directly to supplier A) Businesses where you supply only your own labour are less likley to get a BRO because by continuing to trade you are not harming anyone else.

The second common cause for BRO in traders is Trading to the detriment of the crown - There are two reasons for this. First as above it could be seen as stealing from the crown if you collect VAT but use it for your own expenses rather than passing to HMRC. Secondly is that they try to provide a level playing field for similar businesses. For instance if a person is not paying VAT or income tax then they can provide a cheaper product to the customer whilst undercutting rivals