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Starting a business with a DRO
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DavidLister
Posts: 2 Newbie
in IVA & DRO
I posted this already in the business forum and was advised to try here instead.
Last month I was approved for a debt relief order, and after reading through all the rules I noticed a few things which could potentially ruin my plans for starting a business.
According to the letter I received it says I'm not allowed to do business in any name other than the one on the DRO, I must get permission from a court before starting a business and inform anyone I do business with that I'm the subject of a DRO.
Does this apply to ALL debt relief orders, or just those who have got into debt through their business? (mine was personal debt which built up thanks to 0 hour contract jobs).
I'm currently out of work and claiming ESA and have been for 2 years, but wanted to try starting a small web design business from home as I can't always leave the house due to my health so getting a job isn't really an option.
I was planning on just registering as a sole trader, as it seems the easiest option for starting off then register as a LTD company in a year or so if everything works out.
The problem is, I would like to use a name for my business other than my real name and am concerned that if I tell any prospective clients that I'm the subject of a DRO it may put them off.
I have no problem using my real name in any correspondence with clients, but don't wish to name my business after myself. Also, how likely is it that the court will approve me, and how do I go about asking them?
Has anyone got any experience with this or have any advice for me?
I'm not sure my business will even work out, I'm basically just trying it out to see if I can sell my services to anyone for some extra cash and something to occupy my mind from being at home all day. If it does work out, I don't care if it means my DRO is cancelled because I'll be able to pay it back anyway. I just don't want to be breaking any laws and end up getting fined or something.
Last month I was approved for a debt relief order, and after reading through all the rules I noticed a few things which could potentially ruin my plans for starting a business.
According to the letter I received it says I'm not allowed to do business in any name other than the one on the DRO, I must get permission from a court before starting a business and inform anyone I do business with that I'm the subject of a DRO.
Does this apply to ALL debt relief orders, or just those who have got into debt through their business? (mine was personal debt which built up thanks to 0 hour contract jobs).
I'm currently out of work and claiming ESA and have been for 2 years, but wanted to try starting a small web design business from home as I can't always leave the house due to my health so getting a job isn't really an option.
I was planning on just registering as a sole trader, as it seems the easiest option for starting off then register as a LTD company in a year or so if everything works out.
The problem is, I would like to use a name for my business other than my real name and am concerned that if I tell any prospective clients that I'm the subject of a DRO it may put them off.
I have no problem using my real name in any correspondence with clients, but don't wish to name my business after myself. Also, how likely is it that the court will approve me, and how do I go about asking them?
Has anyone got any experience with this or have any advice for me?
I'm not sure my business will even work out, I'm basically just trying it out to see if I can sell my services to anyone for some extra cash and something to occupy my mind from being at home all day. If it does work out, I don't care if it means my DRO is cancelled because I'll be able to pay it back anyway. I just don't want to be breaking any laws and end up getting fined or something.
0
Comments
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These are standard restrictions. You can see a summary here
https://www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx
I think you can start a businesss without court permission. It's just that you would need permission to start a limited company.
If you want to use a variant of your name for your business, I suggest you run it pat the DRO Team at the phone number on your Debtor's Notice.
I've always found them very reasonable to talk to.0
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