sole trader, want to declare BR

manaquin

Ok, opened a sandwich shop 5 mnths ago, became ill 1 month and hospitalized for another month.
Company is a franchise.

Im in approx 70k of mainly business debt and 4k of personal debt inclusive

I spoke to the Business Debt line ( and i wasnt that impressed, the guy spoke really fast and was quite sharp with me) But also have a appointment with CCCS tomorrow morning.

Ok the only question i want answered is, it says you need to have sought advice regards BR. Would speaking to CCCS/Debt line be acceptable? Or do i have to pay extra to a BR solicitor?

thatsyourlot

Hi & welcome to the boards.

Sorry you felt that the business debt line were useless.. I am sure that you will find the cccs a great help.

I am a self employed sole trader (online business) & went br in august this year. I ony dealt with the cccs & found them really great to talk to.

At the mo, I am allowed to carry on with my online business & as the majority of my debts were personel rather than business, I cant really help you much with the business side of things.

I would not, however.. pay for a br solicitor. The forms are pretty easy to fill in via the internet but like I say, as its a business br, things are probably alot different than just personel br. Hang on in there until after you have spoken to cccs

I am sure that somebody with much more knowledge will be along soon to help you out better than me.

manaquin

hi thatsyourlot

Thanks for your message, it gives me some comfort. Basically, i dont want to run teh business anymore, as i feel although its only 5 mnths, its not working. plus my health has taken a really big kick, im still not recovered.

Im just frustrated as the only thing holding me back is this ' you must have sought legal advice thing'. As it sounds crazy to me, to stop an individual who knows he is in trouble to delcare BR yet let them get into more debt. My account says shes not a chartered accountant and so cant advise on BR. But the Business Debt line did, and CCCS say they can help too. I dont know, i just want to be able to draw a line and move on. I have no assets ( i rent a room, no car etc etc) so nothing really to loose, and im quite ok with the ipo/ipa and understand how they work clearly.

Its a horrible time, and im cringing everytime i see christmas adds!

PS i did speak with another accountant and although again she couldnt advise , she did mention that the fact im not a limited company made things less complicated as limited companies do need specific advice. im hoping someone on here has experience with this,

Tho even though you had personal debt, you did declare business debt as well Thatsyourlot? What did the court say to you about if you sought advice?

debtinfo

hi, if you have spoken to cccs, that is sufficient, you do not need a solicitor or accountant.

Have you ceased trading yet.

BTW welcome and feel free to ask any questions you need to

fiveyearplan

I had a limited company and a sole trader business and it didn't make it any more complicated. I had personal guarantees on most of my business debt and I was the only director/owner of the company so my personal bankruptcy was enough. Any business debt from that limited company fell into my BR.

manaquin

hi thanks both of you for your replies,

yes, i literally just read through the insolvency guides and it does say that business debt and cccs is ok, so that puts my mind at rest.

Ok im still trading, though the franchise company is having a meeting with me tomorrow to discuss the situation. Though i believe that they want this to stay open so as not to loose face, so i think its going to be pointless.

I have approx 1000 at the moment and bringing in 300 ish a day. im hoping this week i can cover the wages bill for the staff as i dont want to appear like ive strung them along. Though i have done a quick reckoner of last months income/out come ad i am running at a loss of 3k ish. Its def not working, and everything is suffering. I think im going to call it very soon.

manaquin

ps was also wondering i know in the guides that teh court could hear your claim or whatever the same day and declare you BR also. Is this typical? I mean if im going down with my papers and i delcare myself, should i withdraw money from my accts before this obviously

debtinfo

yes it is done the same day in most courts, some you have to make an appointment for, some you hand in your forms and come back the next week, each court is a bit different. contact your local court to find out how they work.

The reason i ask if you are still trading is that you should not cotinue to trade with knowledge of insolvency which you now have. Obviously you would not be expected to close over night but you have to be carefull of incurring new debts with suppliers, HMRC, business rates, rent if you know you will be going bankrupt. Like i said you dont have to stop overnight but if you know it is beyond help you should think about not incurring any more debt

manaquin

ok thanks for that. Il get in touch with the courts.

This week i want to ensure i have enough money to at least pay the staff, as i couldnt bare the thought i\that they didnt get paid, though i understand what your saying. The only debt thats got a red letter is the waste water with united utilities. i just paid teh business rates as they were 2 weeks+ over due.