Run small business after?

Tetle

I have my appointment with the court this week to be made bankrupt.

I have always been interested in baking and I after making a few cakes for friends I would like to do this a job and work for myself. I have got all the health and safety stuff sorted.

But what do I do about the business side of things? Can I run a business? Should my hubby (my debts are pre-us and the bankruptcy is nothing to do with him) register the business and I work for him?

I'm assuming I would need to have a work bank account, paypal etc that kind of stuff.

Any advice would be appreciated. I am in NI in case that makes a difference.

National_Debtline

Hi Tetle


We don't cover Northern Ireland (where bankruptcy law differs a little from the other parts of the UK) but the following link may be useful to you:


http://www.detini.gov.uk/index/what-we-do/deti-insolvency-index/insolvency-bankruptcy/insolvency-effect-of-bankruptcy.htm


You may be able to get more detailed advice from Debt Action NI:


http://www.debtaction-ni.net/


Regards


Dennis
@natdebtline

Tetle

Thanks...Debt Action NI have actually been taking us through the entire process and I cant speak highly enough of them.

They didnt seem too sure about business after however.

skintandfat

You can not be a director of a company, you CAN operate as a sole trader whilst BR

Tetle

Excuse my ignorance is there a good breakdown somewhere of what the difference is?
I assume its about volume of sales / profit? I would imagine I wont be turning over big numbers so sole trader sounds good.

alastairq

Limited Companies have Directors.

Tetle

^ I was hoping for a touch more info than that.

TheGardener

The difference is simply that - if your company is Ltd by guarantee then you are a director - if you are a Sole Trader there is no 'limited' and you as the individual accept all responsibility for the business including debt liability - in the event of BR then a Ltd company director is personally protected from the debts and a sole trader isn't. Ltd Companies have to be registered and submit accounts to the relevant authorities.
If you are a BR - you can not be a company director until discharged but you can be a sole trader. It's nothing to do with how much money you make.

Tetle

Ok thanks - thats a bit clearer now.

So would there be any benefit either way to chose me as a Sole Trader or my partner as owner of a Ltd company that I would work for?

lilybankrupt

Tetle wrote: »

Ok thanks - thats a bit clearer now.

So would there be any benefit either way to chose me as a Sole Trader or my partner as owner of a Ltd company that I would work for?

You'd have to be really careful with the Ltd company idea - unless you really were an employee and had no say in setting up / running / business direction you would probably be viewed as a 'shadow director' which is where you are in effect running the business but not formally named as a director. This is frowned upon / even illegal. If your partner were the director I suspect you would have a hard time proving you were purely an employee?

Tetle

Right Sole Trader it is by the sounds of it then.

Any idea how I go about and register all of this? Do I get a separate bank account, I dont even know if im going to get to keep my personal one (which the child benefit, and maintenance goes in).