Bankruptcy & Starting a buisness after!

JoeBloggs_3

Hi,
I am considering going bankrupt, as it is the only way I can see that I can get by in life nowadays.
One of the problems of doing so, is that I am setting up a business, incurred nothing but expenses so far, and havent actually started trading.
I understand that by declaring myself bankrup will mean I will lose all my bank accounts especialliy this business account, as I have a credit card with the same bank, they are already one of my creditors.

Has anyone had any past experience of this? And is it easy to continue my business with a new business account? And does anone know of any such banks that would help me?


I am a sole trader, and wasnt planning on going Ltd until the business had kicked off fully.

Hope you can help!


Joe.

allofadither

Hi JB,

As far as I'm aware you will not be granted a business account once BR. You can still be self-employed but I'm guessing you may have to settle for one of the basic bank accounts to start with and then trade up to a business one later if the bank agrees. Sorry it's not better news...maybe someone else with experience on here can advise.

Browntoa

don't think you can go limited ??

http://www.debtadvicebureau.org.uk/bankruptcy/main_effects.html

There are certain jobs you cannot have if you are an undischarged bankrupt: Company Director (or concerned directly or indirectly in the management of a company),

For a sole trader the effects can be even greater. Whilst bankruptcy does not necessarily mean the busines will close, continuing to trade will be made more difficult:

• If the business needs credit, the requirement for the debtor to disclose that he is an undischarged bankrupt will make suppliers unlikely to provide credit;
• The bankruptcy order will be advertisied locally, which could damage the reputation of the business in addition to that of its proprietor;
• The debtor cannot trade under a name other than the one under which he was made bankrupt;
• If items of business equipment are used by the debtor's employees rather than the debtor personally, exemption from sale cannot be claimed and the trustee may order them sold. This also includes stock in trade which the trustee can sell on behalf of the bankrupt's estate.

JoeBloggs_3

Thanks browntoa/ Allo.
That is good news to be honest. At least I can carry on trading on my new business venture thats a relief! Wasnt planning on going Ltd just now, and this can wait until Im clear of the bankruptcy order.
As its an internet based business im trying to establish, Im not too concerned about the local news, and more than happy to keep the same business name.
As I dont intend on stocking personally, and simply getting my suppliers to ship direct to my customers once they recieve payment, credit will not be an issue either.

Still a lot of pros and conns to think about, and still looking into whether I can get my creditors to lower my monthly repayments somehow. As a couple of them are fixed loans, paying about £200pm on these two alone. And thats on a combined debt of about 3.7k. Then I got CCs with about a further 2k on, which the min pymnts could be met no worries, so not too worried about these.

Anyway, thanks again for the help

Jonto_3

You must continue to trade under the same name that you were made bankrupt under and you cannot hold a directorship whilst being an undischarged bankrupt. CDDA states that.

Bollinge

You can obtain a personal basic bank account with a Visa Electron debit card from The Co-op Bank. It's called a Cashminder account. Use that for the business.

You can trade as Joe Bloggs Internet Consultants, and get your customers to pay you cheques made out to Mr J Bloggs. Pay in at any post office. You will have internet banking, but if you need a cheque you will have to go to a Co-op Bank for each one 'cause they won't give you a cheque book.

If you want, open another basic bank account with another bank for your own funds.

Once you are discharged credit cards are available. Please see other posts on these boards.

Broken_hearted

I would open a few accounts if you are cashing a lot of cheques as the bank may question why and start charging business rates.

JoeBloggs_3

Bollinge wrote: »

You can obtain a personal basic bank account with a Visa Electron debit card from The Co-op Bank. It's called a Cashminder account. Use that for the business.

A lot of wholesalers wont trade to you unless you hve a business account established, under the business name. I dont think the Co-Op account would be sufficient.

Bollinge

JoeBloggs wrote: »

A lot of wholesalers wont trade to you unless you hve a business account established, under the business name. I dont think the Co-Op account would be sufficient.

Would they trade with businesses called J. Sainsbury, Thomas Cook, H. Samuel, for example?

DKLS

JoeBloggs wrote: »

A lot of wholesalers wont trade to you unless you hve a business account established, under the business name. I dont think the Co-Op account would be sufficient.

All the wholesalers I have ever used, Havent cared which account I paid from, I have used cash, business CCs, personal CCs, and personal cheques to pay for goods. And a few have knocked the vat off for cash.

JoeBloggs_3

Hmm, must have struck lucky! I have found that a lot request it to prove you are a genuine trader, and you are not just applying to get goods at wholesale. It is standard policy amongst all the wholesalers I have dealt with on exclusive/ specialised products.