Voluntary or involuntary BR?

tigerfeet2006

Can't wait till Mouse's sober reply today :beer: Hope it was a nice tipple.

Also look at talking to Business Debtline about your situation. If you do decide to go BR then they are going to want to know that you have taken professional advice.
http://www.bdl.org.uk/

Mouse1812

From the IS Technical Manual

30.4 Exempt property Certain types of property are considered to be exempt property, and do not form part of a bankrupt’s estate and therefore are not automatically available to the trustee to realise for the benefit of the insolvent estate. This includes;

• 'such tools, books, vehicles and other items of equipment as are necessary to the bankrupt for use personally by him in his employment, business or vocation’ URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter30/Part%201/Part1%20notes.htm#4"]note 4[/URL (see Part 2, paragraphs 30.29 to 30.39. For guidance on dealing with motor vehicles see Part 6 and
• ‘such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his family’ URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter30/Part%201/Part1%20notes.htm#5"]note 5[/URL (see Part 2, paragraphs 30.26 and 30.28).

The bit in red is important. If you then go and read paras 30.29 to 30.39 spot a problem at 30.36


30.36 ‘Other items of equipment’ – practical examples (amended May 2010)
Temporary but static structures such as a static snack bar in a lay-by could be considered to be trading premises and therefore would be treated as property that is not exempt, whereas a mobile vehicle such as an ice cream van could be claimed as exempt. This is because a mobile vehicle would fall into the category of motor vehicle which is necessary for his/her trading rather than being treated as a premises.
Technical Section has received legal advice that fixtures and fittings such as a baker's oven could be considered to be exempt property, although arguments could be raised to support a contrary view. The official receiver should consider the individual facts of each case when looking at items of fixtures and fittings.


So if you "own" a static burger bar you have a problem, but the equipment in it should be exempt.


The important thing is to study, read, re read and understand the rules. Then you can plan a survival course of action.

Mouse1812

tigerfeet2006 wrote: »

Can't wait till Mouse's sober reply today :beer: Hope it was a nice tipple.

Islay Malt

tigerfeet2006

I salute you on your taste, a Mouse after my own heart

Taxinfo_2

Thanks again mouse, this is most interesting, I shall delve deeper, never heard this before.

Does anyone know if you can trade at the same premesis? I lniw you can trade after bring BR but can you do it at your existing buisness premesis?

Cheers

Mouse1812

Taxinfo wrote: »

Does anyone know if you can trade at the same premesis? I lniw you can trade after bring BR but can you do it at your existing buisness premesis?

Do you own the premises or do you have a lease? If a lease what does it say about bankruptcy / what will be the landlord's opinion.

Taxinfo_2

Mouse1812 wrote: »

Do you own the premises or do you have a lease? If a lease what does it say about bankruptcy / what will be the landlord's opinion.

It's a lease, I don't have a copy of the lease handy but I will check, does it matter what the landlords opinion is? And would/could there be a get out clause for him?

Mouse1812

Some leases contain clauses to terminate the lease on bankruptcy. Some landlords won't want a bankrupt tenant.

Nothing in insolvency law to stop you trading from same place, but will landlord allow you to?

Bit like the bank account confusion: Most think the OR freezes your bank accounts, he/she doesn't, the banks do because they no longer want you as a customer.