| If I go bankrupt can I continue to run my business? | | | | company. Therefore under the terms of the law, if |
| For senior business managers or owners, Bankruptcy | | | | you declare bankruptcy you can continue to run your |
| is not an option if you want to continue managing | | | | business. |
| your business. | | | | However, the issue that you will face is that once |
| Where you have debts which you have no hope of | | | | bankrupt, all of your bank accounts including any |
| repaying, bankruptcy can be an extremely useful | | | | business accounts will be closed. This will mean that |
| solution, which over 6000 people a month use to | | | | you will lose your business banking facilities such as |
| solve their debt problems. | | | | your overdraft and credit card. |
| For those people who are not a home owner, or do | | | | It will be possible for you to open a new personal |
| own your home but have little equity in it then you | | | | bank account after you are declared bankrupt. |
| will not lose your property in bankruptcy. You will also | | | | However, this will be a simple account known as a |
| be able to retain reasonable household goods and | | | | card cash account. You will not normally be given a |
| personal possessions. However for those running a | | | | debit card or an overdraft facility with this type of |
| business it is not such good news. If you are running | | | | account. |
| a business as a director of a limited company or as a | | | | If you believe that your business will not be able to |
| sole trader, you need to be very careful before | | | | operate without credit facilities such as an overdraft, |
| deciding to go down the bankruptcy route. | | | | then declaring bankruptcy may make continuing to |
| The effect of Bankruptcy on company directors | | | | operate your business impossible. |
| You cannot declare bankruptcy and continue to act | | | | The effect of Bankruptcy on employees |
| as the director of a company or be involved in its | | | | As with a sole trader the law does not stop you |
| management. This means that if you are a company | | | | declaring bankruptcy and working for a company |
| director and want to remain in this position, | | | | even in a senior position If your title within the |
| bankruptcy is not an option for you. | | | | company is known as director, but you are not |
| It is also not an option to simply resign as a director | | | | registered as such at company's house, then you can |
| and then to keep on running your business as before. | | | | still declare bankruptcy. |
| Under the terms of your bankruptcy, this activity is | | | | There are some positions particularly in the finance |
| not allowed. | | | | arena where your contract of employment may may |
| As such unless you are able to introduce a new | | | | mean that you can be dismissed if you declare |
| director or can leave the management of your | | | | bankruptcy. If you believe that this may be the case, |
| business to other competent individuals, on declaring | | | | it is always sensible to check before declaring |
| bankruptcy you would effectively be required to | | | | bankruptcy. |
| close your business. | | | | Bankruptcy is an extremely good way of dealing with |
| The Individual Voluntary Arrangement was introduced | | | | a serious debt problem for many people. However, if |
| into English law to act as an alternative to bankruptcy | | | | you are a company director or run a sole trading |
| for company directors and therefore overcome this | | | | business , you need to think carefully and take |
| problem. | | | | further expert advice before proceeding with this |
| The effect of Bankruptcy on sole traders | | | | option. |
| As a sole trader, you are not a director of a limited | | | | |