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1973nl
Starting Member
5 Posts |
 Posted - 18 March 2009 : 12:04:56
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Hi All
I am new here but have been posting on the IVA forum. My main reason for not wanting to go BR was the fact that I am a director of a Limited Company.
I have a couple of questions, hopefully one of the experts on here can answer.
I work freelance doing IT work and am the sole director although I only hold a 51% share in the company. My wife holds the other 49%.
If I were to take the BR route, obviously until discharged I could not be a director. Could I step down as director and my wife take over as director and the running of the company?
What would I have to do with my shareholding? Also, could I become an employee of the company paying normal tax and national insurance?
Once discharged could I swap everything back around again?
Another question, as a BR or discharged bankrupt can you work in a financial services i.e. Banks etc
Sorry for the ramble but my head is in bits at the moment. I have applied for an IVA but it looks likely to be rejected.
Thanks all in advance
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John
New Member
United Kingdom
73 Posts |
Posted - 18 March 2009 : 13:15:19
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Hi
yes you could step down and have your wife become a director and you then become an employee until discharge. And yes this could be reversed post discharge.
If your 51% shareholding has any value from assets or capital or both, either your wife would have to purchase these shares from you at the market rate.
This money would go to the OR.
Or if the only asset is capital then 51% of that capital will be claimed by the OR.
If there are no assets or capital you may, whilst bankrupt, retain those shares.
Bankruptcy itself does not restrict you from working in a bank but most banks won't allow it.
John White
England Jackman & Spacey |
Edited by - John on 18 March 2009 13:17:49 |
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1973nl
Starting Member
5 Posts |
Posted - 18 March 2009 : 13:44:50
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Thanks John for the quick response.
At the moment there are no real monies in the company only tax that needs to be paid, so I guess I could probably keep hold of the shares.
Do you know if banks would employ a discharged bankrupt? I can understand them not not doing whilst BR but what about once discharged?
Also, is discharge automatic after 12 months? How do people get an early discharge?
Sorry for the questions, I haven't considered BR before, but now it could be an option.
Thanks again |
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John
New Member
United Kingdom
73 Posts |
Posted - 18 March 2009 : 15:15:32
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Hi
regarding employment in the banking industry post discharge - this is unlikely but it is of course the decision of the individual bank.
Discharge is automatic after 12 months.
If the case is a simple one and the particular OR's office dealing with the case are keen to get case files off their books then the commencement of an early discharge is a possibility from month 4 to month 9.
After that would not really be worthwhile as it takes 8 weeks plus from commencement to finalise it.
John White
England Jackman & Spacey |
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1973nl
Starting Member
5 Posts |
Posted - 18 March 2009 : 21:48:14
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Thanks again for the reply John.
As I say, I am currently freelancing, so my employer is my Ltd. I am currently on site at a bank, is there anyway they would find out if I went BR? If I had to notify my employer, that would be my Ltd and not the bank as I am not their employee.
Any ideas as this could affect the timing of me going BR?
Thanks
Another quick question |
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John
New Member
United Kingdom
73 Posts |
Posted - 18 March 2009 : 22:03:16
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Hi
as you say if your employer you're safe as it is your own company.
Do you have to sign any kind of contract with the bank and if so are there any bankruptcy clauses?
John White
England Jackman & Spacey |
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Topic |
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Limited Company Question
