bankruptcy questions

[butterflies]

My husband has a few questions if any one can help,

1, I currently am self employed while reading your info it states that you are not allowed to be a director of a company how does this effect me?

2, What will happen to my business bank account?

3, Are tools and equipment listed in assests?

4, What happens to vehicle that is registered to my company?

I currently work as an electrician.


Thanks Mr Butterflies

[MelanieGiles]

You can only not be a director if you enter bankruptcy proceeddings. In an IVA you are free to carry on your company directorship.

If your bank account is held with the same bank to whom you also owe other money it is likely to be terminated. If you are trading as a limited company the bank may allow the account to continue, but if you have persnally guaranteed an overdraft or loan then the facility may be withdrawn.

Tools and equipment are to be listed as assets in both bankruptcy and IVA proceedings, but items classed as "tools of the trade" are exempt.

If the vehicle is registered to a limited company, it belongs to that legal entity and not yourself.

[butterflies]

Thanks for your reply Melanie, but can you just make some things clear,

If a person is entering personal bankruptcy and is self employed and has registered there company as a limted company what is thier position.

Bank account is a basic business bank account with no overdraft facility, no credit cards or anything else.

Thanks

[MelanieGiles]

They are no longer self-employed but a director and shareholder of a limited company. The limited company has to acquire properly the business of the sole-trader as the company is now a separate legal entity in its own right. So far as bankruptcy is concerned, the Trustee will want to value the shareholding in the limited company to see if it has any value.