Continuing my business

jcarver007

Hi All,

Looking for some advice and have looked through the forum but could not find anything definitive

What is the chances of me carrying on my business after being made bankrupt or is it always the case its wound up (I'm a sole trader);

What can I do to help me keep the business going and the OR not wind it up?


The business is profitable year on year - I dont have my own premises, tools are hand tools, use a car for business and personal travel...But not enough to keep on paying the debts I have and run the business and day to day costs.

But due to some issues I had with an ex, stress, spending on her, garage conversion on her property for my kids to stay blah blah....I have found myself in dire straits.

Money owed on self assesment, some bank loans and overdrafts totalling 29k, a couple of credit cards totalling 5k.

Its a shame as my credit has always been great - never missed payments even now....but worried that it may get to the point where I cannot afford the rent, drop kids at school etc

I have also made changes to reduce outgoings - moved into renting a room (not good with two sons staying part of week), and moved into another businesses premises where I rent for a lot less than before - would these actions be looked on favourably?

Without the payments on loans, I would be able to afford to rent a flat or similar and put money aside to cover tax etc.

Any advice on the business would be greatly appreciated....

debtinfo

What do you do?

longtermplanner

I suggest you call Business Debtline http://www.bdl.org.uk/englandandwales.asp# - they are good at talking through the options for self emploeyed / sole traders.

jcarver007

I do ice sculptures and chocolate fountains for events.
Have talked to them and others and all seems a bit vague on whether you can keep the business or if there are factors involved.

debtinfo

ok then the key things then are going to be what specialist equipment to you have (and what is that worth), how much stock do you keep and what is that worth and finally what sort of vehicle do you have, do you own it out right and what is that worth.

jcarver007

debtinfo wrote: »

ok then the key things then are going to be what specialist equipment to you have (and what is that worth), how much stock do you keep and what is that worth and finally what sort of vehicle do you have, do you own it out right and what is that worth.

Hi Debtinfo,

thanks for the reply. Well I own my own car which I also use for taking my sons to school - its worth less than 1k. Tools consist of chisels and chainsaw so not much and I thought they leave your tools. Also a chocolate fountains worth around £600. Stock is 0 as I create to order.

debtinfo

Hi, Then it mostly seems good, car is of low value and seems that it is needed, and they do let you have tools so no problem there either. The one sticking point may be the chocolate fountain as that is not really a tool but equipment. Is that the new price or its value now, guess they are difficult to value. Even if they dont exempt it though you could probably buy it back for a percentage of its value as the cost of its removal and sale would not leave much for the bankruptcy estate.

Just a technical point i wanted to mention although it makes little difference to you. Technically you do not carry on trading, the old business comes to an end on the day of the bankruptcy and you are free if you wish to start trading again the next day but that is fundamentally a new business.

lilybankrupt

Not to hijack the OPs thread, but I'm wondering similar things about my business - I am an engraver. Would my engraving machine be a tool or equipment do you think? If the OR sold it I would be unemployed :-( which doesn't seem to make sense.

debtinfo

There is no definitive answer to what is classed as exempt and i just mentioned to the OP that it is something that may need to be argued over. so it is possible that the same applies to you lily and if letting you keep the asset is likely to mean an IPA then there is more justification for exempting it.

lilybankrupt

thanks - I will start my own thread, I'd welcome your advice :-)

debtinfo wrote: »

There is no definitive answer to what is classed as exempt and i just mentioned to the OP that it is something that may need to be argued over. so it is possible that the same applies to you lily and if letting you keep the asset is likely to mean an IPA then there is more justification for exempting it.

jcarver007

debtinfo wrote: »

Hi, Then it mostly seems good, car is of low value and seems that it is needed, and they do let you have tools so no problem there either. The one sticking point may be the chocolate fountain as that is not really a tool but equipment. Is that the new price or its value now, guess they are difficult to value. Even if they dont exempt it though you could probably buy it back for a percentage of its value as the cost of its removal and sale would not leave much for the bankruptcy estate.

Just a technical point i wanted to mention although it makes little difference to you. Technically you do not carry on trading, the old business comes to an end on the day of the bankruptcy and you are free if you wish to start trading again the next day but that is fundamentally a new business.

Thanks for the info...

So if the original business is wound up...does that mean that I cannot trade again with the original businesses name? I have built up a very good website and links and clients under that name.....I had heard elsewhere that often the business is allowed to carry on trading?