My business is going Bankrupt

dalip

lilacgirl wrote: »

We havent looked into any IVA companies yet as I've got to call debtline back with our budget figures CCCS are now offering IVA's and whilst they do charge a small amount steer clear of companies like DFD:eek:

Me and the partner figured if the creditors refuse to accept what we have to offer then its def the BR route

we have a van which is owned outright (worth only £500 but it could keep the business afloat) do you think we could change the ownership of the vehicle into a friends name to stop the creditors taking it from us? Whatever you do,don't change ownership as if you do go down bc route the OR won't like this

a few years back we decided to go LTD and about 2 months after this we later decided against it for tax purposes, do you think its possible to reverse this and have us trade as LTD again to stop the crediors taking our personal possessions or would this be frowned upon by the courts/BR people?Sorry no idea but max seems quite knowledgable on this side of things

Cheers Lilac

Sorry but no experience of bussiness at all. Hope this helps a little though.D

maxmycardagain

lilacgirl wrote: »

We havent looked into any IVA companies yet as I've got to call debtline back with our budget figures

Me and the partner figured if the creditors refuse to accept what we have to offer then its def the BR route

we have a van which is owned outright (worth only £500 but it could keep the business afloat) do you think we could change the ownership of the vehicle into a friends name to stop the creditors taking it from us? Its safe if its a tool of the business anyway

a few years back we decided to go LTD and about 2 months after this we later decided against it for tax purposes, do you think its possible to reverse this and have us trade as LTD again to stop the crediors taking our personal possessions or would this be frowned upon by the courts/BR people?

if you go BR you cant act as a director of a ltd company, if you WERE already a LTD company you could liquidate it BUT you would only lose the ltd companies debts, not your own...

Cheers Lilac

if you need to know more just ask away

maxmycardagain

Lilac, is the business (either with or without round 2) viable, are you SURE?

if you go BR you wont have credit to run on, so unless sales are in cash it could be very hard. to trade on

debt_doctor

lilacgirl wrote: »

Just a thought...

Could I make our business (partnership) into a Limited company? and hope this way our business would be saved?

I'm just so confused as to whether to go IVA or BR

I've done our budget and at the mo we have -£250 ish to offer our creditors if we go down the IVA route

A partnership is a single legal entity and as such atracts just one fee and deposit in BR and not two.

The forms for a bankrupt(s) in a partnership are completely diiferent to the usual SAO. You could do it seperately ( if BR is your choice ) but why pay twice ?

Best

DD

maxmycardagain

does that depend on the trading status of their business though?

the OP seems to be saying her BF runs the business as a sole trader alone, while she has a job, so does she have 2 jobs then (officially), is the business a trading partnership.

she says they have business loans and personal loans so thats all intertwined too

debt_doctor

Hi Max,

Yes its entirely about their trading status. They must be registered as a business partnership.

DD

maxmycardagain

lilac, did you and the BF setup a legal partnership for the business?

lilacgirl_2

We didnt set up as a legal partnership only as a sole trader where the VAT are concerned and when ever banks have asked its always been the pair of us.

My name is on the business contract (we bought from someone who was retiring) to safeguard myself, he's never took a wage and I don't officially do any of the business work so have never took a wage either as i dont put any 'real' hours into the business.

I have always been a bit unsure as to where we stand, i only wanted joint names on the business purchase just incase we split up

we have 50/50 cash customers and account customers - how long would we have to stop trading while the BR goes through? about 75% of our customers are loyal and would wait but not for too long

lilacgirl_2

sorry just checked my VAT certificate and we are legally a partnership

would we have to stop trading altogether or could we continue?

could we choose to pay our suppliers and not our loan people? we've already opened new personal accounts with the abbey national and a business account is in the process with them to stop our banks taking payment for loans - we havent defaulted yet but we will as we are roughly £1100 down a month as the sales are not what we forecasted them to be - we were pretty sure of the new sales figures as the person we bought the 2nd round from had been doing the business 11 years and had steadily increased his turnover each year

dalip

:eek: Be warned abbey are not bc friendly. I had a joint acc with oh and abbey advised me to take my name off before bc.D