Payment in kind while in bankruptcy
Options
peloton123
Posts: 1 Newbie
I am bankrupt, and (much to my regret) have an IPA, with close to 3 years remaining on it.
I am well aware that if I were to suddenly earn an extra £5000, I'd have to tell the OR and give it to them.
But what if I was to accept some product in exchange for advertising on a website I run? I.e. I run an advert and they give me a physical item in return?
Would I be expected to sell that item and hand the cash over to the OR?
What if I never *owned* the item though? What if the company were to LOAN me the item for the duration of the advertising period, and I give it back at the end.
So I have the use of it for (say) a year, and then give it back to them. How would the OR see that sort of arrangement?
Specifically, I want to acquire a new vehicle, and am unsure if there's any way I can do that without having to wait for my IPA to end.
Alternatively to the above suggestion, I'm a sole trader and run a sporting website. I can/do 99% of my work from home, but could it maybe be argued that going to events in the vehicle to promote the website is part of essential marketing for the business? The business would survive if I never left the house, but it'd do fractionally better if I showed up to events in a nicely-liveried shiny new vehicle. So if I got my wife to lease a vehicle (because I'm not allowed to take more than £500 credit), could I then pay her £300 a month to cover the cost of it without the OR being unhappy, as it's a business cost?
Could either of these possibilities fly, or am I stuck with my ratty old vehicle until I get out of my IPA? Any other suggestions welcomed, thank you!
I am well aware that if I were to suddenly earn an extra £5000, I'd have to tell the OR and give it to them.
But what if I was to accept some product in exchange for advertising on a website I run? I.e. I run an advert and they give me a physical item in return?
Would I be expected to sell that item and hand the cash over to the OR?
What if I never *owned* the item though? What if the company were to LOAN me the item for the duration of the advertising period, and I give it back at the end.
So I have the use of it for (say) a year, and then give it back to them. How would the OR see that sort of arrangement?
Specifically, I want to acquire a new vehicle, and am unsure if there's any way I can do that without having to wait for my IPA to end.
Alternatively to the above suggestion, I'm a sole trader and run a sporting website. I can/do 99% of my work from home, but could it maybe be argued that going to events in the vehicle to promote the website is part of essential marketing for the business? The business would survive if I never left the house, but it'd do fractionally better if I showed up to events in a nicely-liveried shiny new vehicle. So if I got my wife to lease a vehicle (because I'm not allowed to take more than £500 credit), could I then pay her £300 a month to cover the cost of it without the OR being unhappy, as it's a business cost?
Could either of these possibilities fly, or am I stuck with my ratty old vehicle until I get out of my IPA? Any other suggestions welcomed, thank you!
0
Comments
-
peloton123 wrote: »I am bankrupt, and (much to my regret) have an IPA, with close to 3 years remaining on it.
I am well aware that if I were to suddenly earn an extra £5000, I'd have to tell the OR and give it to them.
But what if I was to accept some product in exchange for advertising on a website I run? I.e. I run an advert and they give me a physical item in return?
Would I be expected to sell that item and hand the cash over to the OR?
What if I never *owned* the item though? What if the company were to LOAN me the item for the duration of the advertising period, and I give it back at the end.
So I have the use of it for (say) a year, and then give it back to them. How would the OR see that sort of arrangement?
Specifically, I want to acquire a new vehicle, and am unsure if there's any way I can do that without having to wait for my IPA to end.
Alternatively to the above suggestion, I'm a sole trader and run a sporting website. I can/do 99% of my work from home, but could it maybe be argued that going to events in the vehicle to promote the website is part of essential marketing for the business? The business would survive if I never left the house, but it'd do fractionally better if I showed up to events in a nicely-liveried shiny new vehicle. So if I got my wife to lease a vehicle (because I'm not allowed to take more than £500 credit), could I then pay her £300 a month to cover the cost of it without the OR being unhappy, as it's a business cost?
Could either of these possibilities fly, or am I stuck with my ratty old vehicle until I get out of my IPA? Any other suggestions welcomed, thank you!
I'm no expert and don't pretend to be, but I think I am right in saying any valuable possessions that come your way you have to declare to the OR and he or she will decide if you need to sell it and give them the proceeds of the sale. Hence why high court enforcement officers take goods to help cover the costs of a debt.
I remember over 10 years ago when I went bankrupt I even had to tell my OR if I did overtime, as it was deemed as extra cash for me, but as it wasn't regular overtime he didn't touch it.
It might pay just to give the OR a ring and be transparent, they will appreciate that and be more sensitive towards the situation.0 -
Can it not be a business asset owned by a company and leased back to you at a nominal price? That's pretty much what all the rock stars and actor do when the go BR - the flash cars, jewellery and houses are not assets of the 'star' - they belong to the management company so the OR can't touch them...
0 -
If you borrowed the item, I can't imagine the OR would be interested. If you rented it from your wife or whoever, again it's not an asset. The issue may come in the SOA as your income will have changed because of this. That said, the OR simply doesn't have the resources to check all self-employed bankrupts' accounts every month. How you run your business is your business!
How is your IPA measured? I assume the OR knows you are in business as a sole trader (following all the bankruptcy restrictions about trading names etc). Do they ask you to provide accounts on a regular basis?
Ridiculous as it sounds but this is a great way to get the IPA down, surely. Invest in your business for 3 years, reduce your profit and thereby your IPA! I suppose the alternative for the OR is you don't work, so they turn a blind eye.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards