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Self Employed / Sole Trader and Bankrupcy

Last year my wife and I lost our business. We were both directors and had a loads of personal debts and huge negative equity.

Additionally my wife had a Personal Guarantee for one of our suppliers and has now already been made bankrupted by them.

I am not too sure why but I am still afloat.... not for long I am sure until someone takes action.

I am considering my future as the employed position I am currently in is not satisfying financially and personally.

Could going back to a sole trader status be an option? I fully expect bankrupcy to take place soon, would this stop me from trading?

I don't require credit as such as part of my business activities, nor overdraft facilities, but may through time receive 30 days credit from suppliers for small amounts... Will I be able to do so?

Can I use a trading name? eg. Joe Bloggs trading as joe Bloogs whatever?

I read somewhere that as a bankrupt I would need to strictly work under my own name?

Keep up the good work all, this forum has been so much help to both of us over the last few months...

Comments

  • IF
    IF Posts: 34,349 Forumite
    10,000 Posts Combo Breaker
    Hello and welcome cm, Someone will be along to answer your questions...as i'm not quite sure.
    Best wishes
    If...x
    I know this has helped people, if you click on link in the meantime.

    http://www.bdl.org.uk/
    "If wishes were horses, then beggars would ride"
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    just bumping this one up:)
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Courierman wrote: »
    Last year my wife and I lost our business. We were both directors and had a loads of personal debts and huge negative equity.

    Additionally my wife had a Personal Guarantee for one of our suppliers and has now already been made bankrupted by them.

    I am not too sure why but I am still afloat.... not for long I am sure until someone takes action.

    I am considering my future as the employed position I am currently in is not satisfying financially and personally.

    Could going back to a sole trader status be an option? I fully expect bankrupcy to take place soon, would this stop me from trading? No you are quite able to trade after bankruptcy, the OR's encourage it as if you are earning you may be able to pay some payments towards your creditors.

    I don't require credit as such as part of my business activities, nor overdraft facilities, but may through time receive 30 days credit from suppliers for small amounts... Will I be able to do so? This would count as credit, it is ok if each creditor is below £500, you do not directly have to tell them you are bankrupt. If the credit your received from a single entity was above £500 you must tell them you are bankrupt or not take the credit.

    Can I use a trading name? eg. Joe Bloggs trading as joe Bloogs whatever?

    I read somewhere that as a bankrupt I would need to strictly work under my own name? Not quite correct, if you trade in any name other than what is on your bankruptcy order then you must tell everyone you do business with that you are bankrupt. But if you declare the name on the bankruptcy order you do not. for instance if you were joe bloggs, you could not trade as say south east plumbers but you could trade as joe bloggs plumbers or "joe bloggs trading as south east plumbers", this is so that if anybody wanted to they could check your bankruptcy status out.

    Keep up the good work all, this forum has been so much help to both of us over the last few months...

    hope that helps
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
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