Bankruptcy and self employed

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Smartguy3106
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by Smartguy3106 » Thu Apr 19, 2018 11:02 am
Hi,
After Iva rejected by one creditor, I applied bankruptcy and approved few days ago,
I am self employed, small business, helping me a lot and contribute my expenses everyday living and priority bill.

Yesterday OR called and asked few questions, she was quiet not helpful and told you might need to close trading. And I am too far from you, I will ask local OR to take over. I got worried as I have no business debts, all bills updated, and lot of help, if they close my business I will be in more trouble and stress. Already I am in financial stress.

Then local adviser of OR called, she was quiet polite but she said OR is on holidays, so will call you tomorrow. But will discuss more tomorrow with OR. And might send agents to value assets, I told her not much only my tools and broken items. But waiting today again but still no contact.

I spoke to business landlord and she has no problem to continue after bankrupt.

I thought bankruptcy was last option, and everyone recommended, help from business debtline.

Did not sleep last night, so thought to get some advice here, please, got young children and rented house, no property or assets.
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Foggy
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by Foggy » Thu Apr 19, 2018 11:10 am
Everyone who petitions for BR has to go through these hoops and under the microscope. I think she probably meant you might have to cease trading if you operate on credit accounts from suppliers --- everything will have to be cash transactions and some suppliers might close accounts. If you can get around that, there should be no problem. But, as with everything, it all depends on the whole picture, which the OR is trying to piece together.
Smartguy3106
Posts: 3
by Smartguy3106 » Thu Apr 19, 2018 11:26 am
Thanks, but I have no suppliers, and no credit account,just buying through cash or debit card.

They say will tell your customers you are bankrupt, who have pending repairs. And value agents will visit your business to sell, look like they don't believe me, but I told them truth what I got.

Read stories here and there, OR call and they are polite and ask few things and send accounts, but here things are very worrying me, specially closing my business and put me and family on street,





Foggy wrote:
Everyone who petitions for BR has to go through these hoops and under the microscope. I think she probably meant you might have to cease trading if you operate on credit accounts from suppliers --- everything will have to be cash transactions and some suppliers might close accounts. If you can get around that, there should be no problem. But, as with everything, it all depends on the whole picture, which the OR is trying to piece together.
Smartguy3106
Posts: 3
by Smartguy3106 » Thu Apr 19, 2018 5:42 pm
Thx all, sorted and OR allowed to continue , very polite and understood my position, will just need to clarify my accounts and bank statements,

Thanks forum
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Foggy
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by Foggy » Thu Apr 19, 2018 6:16 pm
Good news. Please let us know how you get on.
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kallis3
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by kallis3 » Thu Apr 19, 2018 6:26 pm
Excellent news!
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Lisa Thomas
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by Lisa Thomas » Fri Apr 20, 2018 9:21 am
For the benefit of other sole traders out there - if you go Bankrupt the Official receiver or any trustee appointed has to give permission fo you to continue trading.

To make this decision they will consider, amongst other things, - what type of trade is it (risky etc)? Is it profitable (if not they will want you to stop trading to prevent further debts form accruing)? What assets do you own to trade and do they have any material value to warrant repossessing and selling for the benefit of the Bankruptcy estate instead?
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Foggy
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by Foggy » Fri Apr 20, 2018 10:41 am
Thank you, Lisa .
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