Bankruptcy as sole trader

Jwood275

Hi,

I've just joined the forum as I am considering bankruptcy. I have a huge debt that I have no real hope of paying and the creditors are unwilling to accept my offers of repayment and are threatening to send round the bailiffs. I was director of a limited company which is now dissolved but I earn a living as a sole trader. I have no assets either personal or for the business but it is my only means of income. Will bankruptcy affect my ability to operate as a sole trader?

Thanks,
J

skintandfat

I was allowed to continue as a school trader after I went BR.

I am in Scotland and things are more civilised up here

Check before you do anything

National_Debtline

Hello there.

So long as the business is viable you should be allowed to continue to trade as a sole trader. Please do bear in mind that as a bankrupt there could be significant limitations to access to bank accounts, you are also not allowed to borrow more than £500 - this could make trading difficult if you rely on credit. You may also find it difficult to seek business insurance as a bankrupt although it's not impossible.

We really hope you find this useful,

National Debtline.

GlamGirlie

There is nothing to stop you trading but you are likely to be declined any attempts to borrow money, and some banks will not allow you to open/operate a business account.

However, if you try to run a business a/c through a personal a/c you are likely to find this breaches banks' T&Cs and you might get asked to close your personal a/c as well.

thinkpositive1

Jwood I have had to consider the same issue. Traded as a limited company but have dissolved it and now trading as self employed / sole trader.

I am in an IVA and due to fluctuating and less income in recent times I have considered whether bankruptcy may be a better option. I don't think it affects your ability to operate as a sole trader but even on an IVA it is a nightmare trying to find a bank that will let me have a sole trader account and I am not seeking any borrowing facilities at all.

Direct dot gov and the Insolvency Service websites both have quite a bit of info on this - worth you checking out I think.

Jwood275

Thanks for the replies. I understand it would be hard to get any credit but with my current situation I wouldn't even try anyway. The business operates without any credit as it doesn't have any real outgoings so I don't think it's going to be too much of a problem if I'm allowed to trade.

oplus

Nobody and nothing can stop you trading in your own name, apart from the grim reaper of course.