Bankruptcy

UKSF

Hi,
I'm on here because I can't believe how hard it is to find the answer to what I believe is a straight forward simple question and it's getting me down a bit
I am on Income Related ESA and my future situation isn't likely to change.
I have debts totalling £27000 across 6 creditors and I'm about to offer them all a settlement figure of 15% of their associated proportionate debt out of a pot of £4000.
If they don't go for it, I will have no other choice than to go bankrupt.
My question is, if I go bankrupt and then choose to get myself back in to work by becoming self employed, how will that choice be affected if I do it during the 12mth period following on from when my bankruptcy application is granted ?
Many thanks in advance and I hope someone can help me. :)

sourcrates

Hi,

If you have surplus income of more than £20 per month it’s likely you will get an IPA for up to 3 years.

Flyright

You can become self employed as an undischarged bankrupt but you have to abide by the restrictions applicable, such as not obtaining credit of over £500 without disclosing your status and trading in the same name as the name you were made bankrupt in (or else disclosing the name in which you were declared bankrupt to all those you do business with).

UKSF

sourcrates wrote: »

Hi,

If you have surplus income of more than £20 per month it’s likely you will get an IPA for up to 3 years.

Flyright wrote: »

You can become self employed as an undischarged bankrupt but you have to abide by the restrictions applicable, such as not obtaining credit of over £500 without disclosing your status and trading in the same name as the name you were made bankrupt in (or else disclosing the name in which you were declared bankrupt to all those you do business with).

Hi both and thankyou.
My debts are all unsecured and prersonal and nothing to do with a business. I haven't been in work for a number of years and was just looking at possibilities for myself regarding maybe starting my own business because I'm not committed to having to meet an employers needs for me to work set hours due to the nature of my personal situation.
I have heard about the IPA but I was wondering if I would have to keep updating my income figures on an ongoing basis and what legitimate business expenses I could claim against my income, for example re-investment to grow the business. That sort of thing :-)

John_G_Jones

Could you not go self-employed now? It could let you repay without going bankrupt.

It seems a strange way round to go bankrupt first if you may not need to.