want to go bankrupt but what about my business?

bertie_basset_2

hi,

i am thinking about going bankrupt as the debts i have are so overwhelming i cannot cope anymore. i have tried to sort them out myself by offering all my creditors a small fixed amount each month but all those small payments are adding up to a fortune and i cant afford to live as it is! the trouble is i have a taxi business, its not doing very well at all, but its the only income my husband and i have. there are no assets in the business, we have our office at home as we couldnt afford the rent, the vehicles we have are on finance. what will happen to my business if i go bankrupt? will they shut it down or can i continue trading.... i am a sole trader not a limited company .

any help would be much appreciated at this very worrying time xx x

kepar

Have you been claiming expenses against the use of your house, ie phone' electric etc.

If the business is not providing an income to live on now, why will it change if you go br?
Also you are using credit to survive, how will you manage post br.

Is there any equity in your house?

bertie_basset_2

my accountant puts down a % of expenses as i run the business from home. i did say my business wasnt doing very well, it does provide us an income but a small one. im not using credit to survive because i cant get any! i get a small % from the drivers that work for me- they are self employed, my husband is a taxi driver and we have his wages but its not a lot, we do get tax credits though- without them we would be !!!!!!ed! we would still have a small income afrter br from the business and my husband so surely this is better than nothing. i have 2 young children who i look after as well so finding anothr job to fit in with them would be difficult. my house has neg equity btw x

bertie_basset_2

anyone help me here? any advise please x

tigerfeet2006

Please give Business Debtline a ring and go through your options with them. The courts may reject your petition if you haven't taken professional advice.

http://www.bdl.org.uk/

Once you have taken advice and you decide that BR is the way to go then we can help with the forms and support you.

Are you Limited or SE?

debtinfo

okay then, the reason you probably have not had many responses is the lack of detail in your post, so some questions

originally you said i have a taxi business, later you say we, so is it your business or is it a partnership,

The other taxi drivers, do they pay part of each fare, a set fee, a radio fee etc,

do you own any of there cars

do you have a radio or computor dispatch system

is any of your equipment in their cars

What sort of business do you do, black cab, private hire, airport services etc

do you have any contracts with anyone, a school for example

How many vehicles do you have

are they all licensed

Are they all on HP

What sort of vehicles,

do you have any exclusive patch

sonic55_2

A whole load a questions have kindly been asked in a previous post. These will need to be answered.

An initial thought or two that may give a little guidance, although others in this forum will be able to add to, improve or clarify what I say:

1. If you go bankrupt your trustee in bankruptcy can apply to the court under Section 314 of the Insolvency Act 1986 for permission to allow you to continue trading the business. The trustee won't be impressed though if you trade the business and it makes a further loss!

2. I think, but will need to check, that bankruptcy automatically terminates contracts of employment (assuming of course that you have some employees?)