Self employment and bankruptcy

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Mattybaldy

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Post by Mattybaldy » Sat Aug 07, 2010 1:53 pm
Hello guys,

With a little over three weeks until the end of a 12 month payment break, it's looking likely that my IVA will fail. Having given up on trying to find a 'normal' job, I decided to become self employed instead. Unfortunately, I am not yet making enough money to meet the IVA payments which are £370 a month.

If I am declared bankrupt as a result of the IVA failure, will I still be allowed to be a self-employed sole trader?

Is there any other alternative to bankruptcy should my IVA go down the tubes?

Thanks in advance.

Matt.
 
 

kallis3

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Post by kallis3 » Sat Aug 07, 2010 1:58 pm
Hi Matt,

I think you will be ok, but one of the experts is better helping with the self employment question.

You could look at doing a DMP, or negotiate with your creditors yourself.

I think they are the only options other than bankruptcy.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

carole2662

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Post by carole2662 » Sat Aug 07, 2010 3:59 pm
My daughter was allowed to trade but not be a director of the company. She also was not allowed to sign cheques on the business acount.
 
 

Mattybaldy

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Post by Mattybaldy » Sat Aug 07, 2010 5:08 pm
Thanks guys.

I should point out that I am an individual trading as... rather than a company of any kind if that makes any difference.

I had hoped to be able to continue with the IVA, but I am earning nowhere near enough to make the payments at the moment. Unless there is a huge surge in business in the next couple of weeks I have had it. It doesn't help that the holiday period has quite a bad impact on my line of work.

Damn shame as I am 2 and a half years into the IVA.
 
 

Mattybaldy

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Post by Mattybaldy » Sat Aug 07, 2010 9:09 pm
Sorry, but I'm bumping this as I've not had a definitive answer yet. ;-)
 
 

MelanieGiles

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Post by MelanieGiles » Sun Aug 08, 2010 12:55 am
Bankruptcy should not stop you from earning a living - but you will need to declare the fact that you are bankrupt to your suppliers and seek permissiom for credit in excess of £500 from the Trustee.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Mattybaldy

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Post by Mattybaldy » Sun Aug 08, 2010 2:16 pm
Thanks Melanie.

Fortunately, I pay cash for everything I buy from my suppliers, so the credit thing won't be a problem.

If I were to be made bankrupt (as seems likely) will my creditors not try and take my assets such as my van and my equipment etc?
 
 

Skippy

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Post by Skippy » Sun Aug 08, 2010 2:37 pm
If you're self employed you are allowed to keep the tools of your trade. If they are of excessive value the OR can sell them and you will be given money to buy cheaper replacements.
 
 

Mattybaldy

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Post by Mattybaldy » Sun Aug 08, 2010 2:56 pm
Thanks Skippy, that's good to know.

Can anyone recommend how I go about filing for bankruptcy? I really don't have the first idea how to go about it.

Is there a particular website I can visit?
 
 

kallis3

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Post by kallis3 » Sun Aug 08, 2010 3:11 pm
http://www.insolvency.gov.uk/index.htm

Has all the info and the forms to fill in which you can do online.

It will cost you £600 but if you are on certain benefits that is reduced.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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