bankruptcy at 27 years of age

misscampbell

I am 27 years old, £23,0000 in debt and in a position where I am wanting to be able to start up my own business.

I am considering going bankrupt to alleviate an increasing or unmoving debt. This would allow me to break a cycle unfulfilling administration jobs that have no relevance to my training, and will subsequently allow me to pursue a career in my field of design.

Any one who has been in a similar position, or knows of anyone who has; feedback would be greatly appreciated.

Many thanks.

DrFluffy

Is it still the case that a bankrupt cannot own a buisiness, ever? I know you can't practice at the bar, but wasn't sure if the 'new' bankrupcy rules still mean you can't own business...

Mrs_Sparkle

Think very carefully about this before you take the plunge. I'd say it would affect your business. I for one can never take the option of going bankrupt as I would lose my job.

Also, perhaps you should try to sort out your relationship with money before you start your own business? A lot of us are here because we haven't dealt with our attitude to money and spending before now. Hope that makes sense.

oakdale_minx

hi - why not do an SOA? It's on a sticky at the top of the board.

Maybe there might be some other answers other than bankruptcy. If you do go bankrupt, there might be all sorts of barriers if you want to start your own business that aren't there at the moment.

Goldielocks

You cannot be a Director of a company as an undischarged bankrupt.

all_hours

Goldielocks wrote:

You cannot be a Director of a company as an undischarged bankrupt.

Can you be after you're discharged?

lynzpower

Actually, thinking about it All hours, Im sure Ive read you cant be a director if youve ever been bankrupt -
off for a google

lynzpower

This is to do with disqualification

http://www.insolvency.gov.uk/directordisqualificationandrestrictions/whatisdisqualification.htm

Goldielocks

all_hours wrote:

Can you be after you're discharged?

Taken from the Insolvency website:

What are the restrictions on a bankrupt?

The following are criminal offences for an undischarged bankrupt:

1. obtaining credit of £500 or more either alone or jointly with any another person without disclosing your bankruptcy. (Note: this is not just borrowing money - it includes your getting credit as a result of a statement or conduct which is designed to get credit, even though you have not made a specific agreement for it. For example, ordering goods without asking for credit and then failing to pay for them when they are delivered);

2. carrying on business (directly or indirectly) in a different name from that in which you were made bankrupt, without telling all those with whom you do business the name in which you were made bankrupt;

3. being concerned (directly or indirectly) in promoting, forming or managing a limited company, or acting as a company director, without the court’s permission, whether formally appointed as a director or not.


These are restrictions placed on you as an undischarged bankrupt. I see no reason why you cannot become a Director once you are discharged. In fact that's one of the reasons they bought in the Enterprise Act 2002 - which changed the length of bankruptcy to one year as opposed to the old system which was a lot longer (3 or 5 years I can't remember?). It means that people who have tried to set up their own business and have failed, can get back on their feet quicker.

G

msmicawber

What is hof design? Is it something you could develop as a second job to help shift the debt while continuing in mundane administrative jobs? Once your debt is cleared and you've come to grips with your money issues, assuming the hof designing has taken off, then you could look at starting your own business.

There's a large number of DFWs who are in debt because of starting their own businesses. If you're not good with money anyway, I don't think you can afford to take the risk. I imagine you'd have to borrow money for start-up costs of your business, including feeding and housing yourself until you start making profits. I doubt you're in a position to borrow more money anyway with £23,000 of debt.

Please post your SOA and let's see how quickly you could clear your debt as I think that's your best next move. You're only 27, you've got plenty of time to do everything you want to do without making your situation worse for yourself first.

martyn4764

msmicawber wrote:

What is hof design?

Er, I think she meant "my field of design"