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Hi

just a hypathetical question....if my IVA was rejected (which I hope isn't!) and I decided to declare myself bankrupt, could I sell my business before declaring myself bankrupt or would I have to wait for the OR to close me down?

Hi Kezza

There would be nothing to stop you selling your business, but obviously the sale proceeds would need to be held to the order of your creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks Melanie,

How do you work out what a business is worth? Because I take it you wouldn't be able to sell under value

kezza,

Bear in mind the OR won't shut down your business just for the sake of it.

They will mainly be interested in any assets of significant value.

If there are none or the OR decides not to bother with them, you may be able to continue trading especially if there is a chance of generating some income to benefit your creditors.

-Best

'5 years sticking my head into the Lion's mouth of debt !'

Kerry

There are lots of ways of valuing businesses - profit levels, turnover levels, asset values. As a very experienced insolvency practitioner, I tend to operate on the following formula -

How much is someone prepared to pay for it, and do they have the funds available? Might sound a bit blase, but it generally serves to get the highest offers. We also employ agents to provide professinal valuations of the assets and business undertaking.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk