Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

ByGIEDRE
#326823 i am planning to become self employed and do translations-i will need to pay sales person-will they treat that as expences?


they will make a decision ref the term of bankrupcy (1year or 3 years) based on what-bank statements or incomes, expences ?
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ByTalbotWoods
#326833 GIEDRE

Last month I asked you to provide some information regarding your application for bankruptcy, in particular your residency status.

This question was based on information YOU have given and its answer has a MASSIVE legal implication regarding if you can or cannot enter into bankruptcy in he UK.

Consequently we need to know the correct answer before we can offer further advice

Are you saying that you have not lived in the UK since 2004?

Or

Are you saying that you currently live in the UK and have done continually since 2004?
ByGIEDRE
#326843 2004-2008 in uk
2008-2010 Lithuania
2010-now UK
i gave birth in 20120 10 10 in Lithuania, I am on maternity and going back to uk this month.
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ByTalbotWoods
#326853 I was suspicious of this. The brakes are on regarding your bankruptcy for at least 6 months.

To enter into bankruptcy in England, you must

Have been ordinary resident in the UK for the best part of the past six months, or carried out a business in the UK for the better part of the previous 6 months.

Basically this means because you are now not in the UK and have not been for the better part of the past 6 months, your application will be rejected until such time as you have been back in the UK for 6 months as a resident.

If you no longer live in England and Wales, you are not prevented from making yourself bankrupt here by the EC Regulation on Insolvency Proceedings 2000, HOWEVER you must have lived or carried on business within the area covered by the county court where you are presenting your petition at some time within the 6 months prior to the presentation of your petition. If you are returning to live in the UK during the period of the bankruptcy you are not permitted to use this method, or the bankruptcy will be cancelled

Because of this, I suggest that you now seek professional advice, as this now moves out of the normal remit of this forum and residency issues have been well know for Bankruptcy Petitions failing.

The original question cannot apply, as if you are self employed and not a limited company, then this will be considered a partnership, so the person jointly working with you is not classed as an employee. If you take them on as an employee, then that is a business matter and not a PERSONAL insolvency matter
ByGIEDRE
#326863 but i am emplyed-i am just on maternity.
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ByJaneClack
#326873 and you are in Lithuania....

I am sorry but this is beginning to sound like there is a hole in my bucket. We can only advise on the information we have.

When and if you go bankrupt you will have to fill in a budget - you will discuss this with the Official Receiver as if you are self-employed you are likely to have your interview in the office and not over the telephone. He will tell you what things are allowed as expenses - basically though expenses should be deducted from your turnover and what is left over is subject to tax. So your income is less rather than putting business expenses on the budget.

Are you still on the books of the company you worked for - as if so and you are receiving maternity pay then you can claim this is your centre of main interest but if you are not being paid or registered still as a member of staff, your centre of main interest is Lithuania until you return to the UK.

Bankruptcy lasts ONE Year - what may be longer is a bankruptcy restrictions undertaking which can be from 2 to 15 years. A bankruptcy restriction undertaking basically extends the restrictions of bankruptcy and the Official Receiver will do this if he feels there is anything untoward, or there has been reckless expenditure or there are any circumstances which he deems need further clarification.

If you go to http://www.bis.gov.uk/insolvency you will find a section on publications which has all the answers to the questions you may have.
ByGIEDRE
#326933 i am employed in UK, just on maternity in Lithuania.
Baby is too little for kindergarten, so i was planning to quit work and become self employed after May.
I claimed benefits in uk.
My husband is in UK and working there too.
Am i enttled to bankrupcy?
User avatar
ByTalbotWoods
#326943 The fact you are not in this county, but you are living (albeit on maternity) in another country appears to FAIL the residency rules, which state that you must be ordinarily resident in in this country.

I am sorry we do not make the law, we just have to abide by it, whether we agree with it or not

I suggest that you now seek professional advice, as this now moves out of the normal remit of this forum and non UK residency issues have been well known for Bankruptcy Petitions failing.

Also I have further sough advice regarding your planned self employment and your employment of a sales person. The advice has come back that you need to seek professional advice on this as there are several considerations that we are not able to answer regarding the legal status and formats of the proposal. There is NOTHING stopping you setting up a company, and nothing stopping you employing staff, but that is purely a business development matter, not a debt matter.

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