Sole Trader income payments

TheGardener

JCS1 wrote: »

Get business debtline and your accountant to read this


https://www.insolvencydirect.bis.gov.uk/casehelpmanual/B/BookDebts.htm

I also think this is true mainly for Partnerships and Companies. However, I still believe that the OR will permit the OP to ensure they have an income. The OR will not leave the OP without an income to pay their essential living costs.

Flyright

I think the OR guidance is quite clear. Money owed to the bankrupt is a book debt and the OR will seek to recover it via their agent contacting the book debtor. I agree that the OR will allow a self-employed bankrupt to earn an income to meet essential expenses but the OP ought to be aware that the OR will treat money owed to the OP as book debts in the first instance.

JCS1

TheGardener wrote: »

I also think this is true mainly for Partnerships and Companies. However, I still believe that the OR will permit the OP to ensure they have an income. The OR will not leave the OP without an income to pay their essential living costs.

It's also for sole traders. I dealt with a few like this. Book debts are assets, there is no discussion.

For the OP is all comes down to timing, they need to time it so book debts are low (as they will be an asset) and there is money in the bank to live on.

NIC71

I’m sorry I think I need to clarify...
1/ I’m not Banktupt yet. I submit tomorrow.
2/ Anything I’ve earned up to this point has been invoiced and paid to me. So the OR will see this. All is declared on the form too.
4/My accountant has done year end accounts, so accurate income/expenses will be submitted.
5/ The question was regarding invoices sent after I have submitted my bankruptcy application.
Thanks so much for all your advice. I do appreciate it.