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How bankruptcy affects me

Bankruptcy and my business

Going bankrupt can have a serious impact on your business. Look into this before you make any decisions.

How bankruptcy affects your business depends on whether you:

  • Are a sole trader, or
  • Have a limited company

Bankruptcy as a sole trader

You may be able to continue trading after going bankrupt, but:

  • There is no guarantee of this
  • The official receiver may decide to sell your business

You can usually keep the tools you need to do your job. But when it comes to stock:

  • Stock your business owns is considered an asset
  • The official receiver may choose to sell it

You may have to let go any employees you have.

You must hand over all business records to the official receiver.

Bankruptcy and a limited company

There are rules during Bankruptcy, including:

1. You cannot be director of a limited company

2. You need court permission to take part in any:

  • Promoting of a limited company
  • Forming a limited company

3. To manage a limited company:

You must inform everyone involved in your bankruptcy before you trade in any business under any name.

Get free bankruptcy advice

Get debt advice if you are a sole trader looking at bankruptcy.

Bankruptcy can affect your membership of any professional bodies.

Contact Business Debtline for help if you are trading as:

  • A limited company
  • Partnership, or
  • Limited liability company