Starting up a small business after bankruptcy?

ShinyShiny_2

Hi everyone, I hope nobody minds me asking this here.

I've just been discharged from my bankruptcy this morning, and I've been hoping for a while now to set up a little online shop selling the bits and bobs I make/paint as part of my hobby. It's going to be a "pocket money" business at best - although as I understand it even if I only make £50 for the whole year I still have to be formally registered as self employed with HMRC. So, two questions really -

Now I'm discharged, is that really it? If I suddenly start earning again can the banks/OR decide to claw back anything from my new income?

Are there any legal issues/potential hitches with a freshly-freed ex-bankruptee running their own business?

I've been doing some research and as far as I can see I *should* be OK, but I'd like some reassurance from those in the know before I go getting myself into trouble.

maxmycardagain

I dont think there is anything to stop you, your biggest problem is processing payments, unless you have already got a bank account, and online bankig is a big help too.

Worcsman

ShinyShiny wrote: »

Hi everyone, I hope nobody minds me asking this here.

I've just been discharged from my bankruptcy this morning, and I've been hoping for a while now to set up a little online shop selling the bits and bobs I make/paint as part of my hobby. It's going to be a "pocket money" business at best - although as I understand it even if I only make £50 for the whole year I still have to be formally registered as self employed with HMRC. So, two questions really -

Now I'm discharged, is that really it? If I suddenly start earning again can the banks/OR decide to claw back anything from my new income?

Are there any legal issues/potential hitches with a freshly-freed ex-bankruptee running their own business?

I've been doing some research and as far as I can see I *should* be OK, but I'd like some reassurance from those in the know before I go getting myself into trouble.

I asked the same question some time back, the answer is quite simple and good news. After discharge, so long as you dont already have an IPA set by the OR or any BRO/Restrictions type thing, then anything you earn is yours to keep and the OR or your creditors wont be able to get their hands on it.

mel12

Even during bankruptcy you can trade as a sole trader, so theres no problem there. Thats probably all you'd need for a 'pocket money' business.

Once discharged, unless you have a BRO/BRU you can set up a limited company if you want to.

If you have an IPA you need to declare your earnings to the OR, if not then they're yours to keep.

The main challenges are likely to be in access to credit and banking facilities rather than legal restrictions:
a) access to a business bank account/ card processing facilities etc.
b) access to credit from suppliers.


You don't necessarily need either of these things to run a business though depending on what you're doing. Eg a lot of smaller online traders just take payments through paypal rather than taking card payments directly.

Ineedaname

mel12 wrote: »

If you have an IPA you need to declare your earnings to the OR, if not then they're yours to keep.

Even if you currently have no IPA you will still need to tell your OR about a change in finances/starting to earn during your BR year.

elliesmemory1

Ineedaname wrote: »

mel12 wrote: »

If you have an IPA you need to declare your earnings to the OR, if not then they're yours to keep.

Even if you currently have no IPA you will still need to tell your OR about a change in finances/starting to earn during your BR year.

Even if you are discharged???

kepar

Ineedaname wrote: »

mel12 wrote: »

If you have an IPA you need to declare your earnings to the OR, if not then they're yours to keep.

Even if you currently have no IPA you will still need to tell your OR about a change in finances/starting to earn during your BR year.

The OP is discharged , they can do what they like and not have to report to the OR.

Ineedaname

Missed that fact, but did caveat my post with "during your BR year" so was very clear in my meaning.

SurreyLass1

Natwest do a BASIC Business Bank Account, which they state is even suitable for people with poor credit histories - it is called the Foundation Account - hey dont advertise it, and you have to ask for it. It comes with NO overdraft facility, but does have a cheque book and a cash card. It might be worth going in to your local Natwest Branch, and trying to speak to the Business Accounts Manager.

My Dad has a V iffy credit history (though not BR - but lots of ????) and he was declined every where else, but the Foundation Account went through absolutely no problem at all. It cant be done online, has to be done in person in a branch.

Good luck - and congrats on your discharge!

ian_h

SurreyLass1 wrote: »

Natwest do a BASIC Business Bank Account, which they state is even suitable for people with poor credit histories - it is called the Foundation Account - hey dont advertise it, and you have to ask for it. It comes with NO overdraft facility, but does have a cheque book and a cash card. It might be worth going in to your local Natwest Branch, and trying to speak to the Business Accounts Manager.

My Dad has a V iffy credit history (though not BR - but lots of ????) and he was declined every where else, but the Foundation Account went through absolutely no problem at all. It cant be done online, has to be done in person in a branch.

Good luck - and congrats on your discharge!

Its not quote as exclusive as you imply details are here