Builder made bankrupt last year 7 March 2021 at 9:35AM in Bankruptcy & living with it 14 replies 841 views

Undervalued

Apologues if this is not the right place to ask this question but any help would be appreciated.

I have been quoted for some building work by a local firm (sole trader with about four staff). e.g Joseph Bloggs t/a Joe Bloggs builders. They seem to get largely decent reviews.

However, in doing some further research I have found that the proprietor was made bankrupt in the middle of last year at the request of a major builder's merchant. His home address also seems to have changed at around the same time.

Their terms of business are 5% deposit to confirm order. 45% when work starts and the remaining 50% on "satisfactory completion".

Should I be concerned?

I assume the individual is still legally allowed to trade?

Thanks.

DCFC79

Id get some more quotes.
Ask your neighbours for any recommendations ?
The DIY board might be more suited.

fatbelly

Generally an undischarged bankrupt would still be allowed to carry on with their normal business.
I would guess last March - June was a difficult time for cashflow for any builder. 
I wouldn't necessarily reject this one because of the bankruptcy but I can't comment on whether those terms are reasonable - better on another board probably

Flyright

It's worth remembering that whilst an undischarged bankrupt is allowed to continue to trade, the restrictions state that if they trade in a different name to that which they were trading when declared bankrupt they must disclose that information when engaging in a future business and they also have to disclose that information when taking deposits if they are trading in a different name.

Undervalued

Flyright said:

It's worth remembering that whilst an undischarged bankrupt is allowed to continue to trade, the restrictions state that if they trade in a different name to that which they were trading when declared bankrupt they must disclose that information when enaging in a future business and they also have to disclose that information when taking deposits if they are trading in a different name.

Thanks but how would I find that out?

Flyright

The restrictions are under Section 360 of the Insolvency Act 1986.  The individual insolvency register will give you the details of the bankruptcy including any trading names being used at the time of the bankruptcy.

Undervalued

Thanks.

However I don't seem to be able to find him on the register, either by name or trading name. So I assume he must have been discharged more than three months ago?

Flyright

All bankruptcies last at least one year so if he was declared bankrupt in mid 2020 he would not be discharged yet.  How did you find out he was made bankrupt? I assume from an entry in The Gazette?

Undervalued

Flyright said:

All bankruptcies last at least one year so if he was declared bankrupt in mid 2020 he would not be discharged yet.  How did you find out he was made bankrupt? I assume from an entry in The Gazette?

Interesting.

Yes, formal notice in The Gazette was the third or fourth search result when I Googled the name.

Notice gives both the full name, address  and occupation. It is less than a year since the order was issued but more than a year since the petition was filed.

Flyright

Does the Gazette notice state which Official Receiver's office is dealing with the bankruptcy?

Undervalued

Flyright said:

Does the Gazette notice state which Official Receiver's office is dealing with the bankruptcy?

Yes it does and it is the city in which he and I both live.