Bankruptcy Restriction and Sole Trader Business

Gr00vebird

Thank you for taking a moment to read this thread, any thoughts, experience or even opinions are welcome.

I ran a business which went bust after 10 years, as a result I've gone personally bankrupt too.
The official receiver is looking into misconduct as there seemed to be so much money flowing in different directions that i can't fully account for (nothing sinister or bad here, i just can't recall or account for every transaction from so long ago)
Its looking likely that they'll push the claim for misconduct
As far as i know the penalty for this (apart from not being an MP, or an insolvency practioner!!) is that the only real restriction is not being allowed to be a director during my 12 month bankruptcy term can actually be extended to between 2-15 years
I don't think there is much worse than that but i'd like to know more?

So i'm unsure of the implications of this as i'm thinking of continuing to work running my own small business and looking for a way to do that. I felt its pointing to being a sole trader as a solution, with a standard current account and no credit facility.

However does anyone know any problems with this idea. Perhaps i'm prevented from being a sole trader in my 12 months of bankruptcy, or perhaps i'm not allowed to do so beyond the 12 months whilst under extended restrictions for 2-15 years

if the official receiver does want to push the extended restrictions point i also feel there is little point in disputing it and therefore taking the "voluntary restriction undertakings" as i hear this reduces the term?

as said, any thoughts appreciated

debt_doctor

Hi,

If subject to a BRO / BRU then you will be limited by the same restrictions as within bankruptcy for a further period of time - as you say between 2 - 15 years.
You can be a sole trader during this time but you must not be involved in the formation or running of a Ltd Company, cannot be the trustee of a Charity and cannot borrow more that £500 without disclosing that you are under a BRO/U.
DD

skintandfat

I ran my sole trader company whilst bankrupt.
I told the wholesalers who didnt bat an eyelid (I always pay their debt) and they knew.
One even moved to another wholesaler and opened up a new account for me with the full knowlege of my BR (still in the 12 months)

Be open and honest