No matter if you have your own business or you are employed by a company, chances are that bankruptcy implications will come into play now or at a later date.
If you are worried about how bankruptcy may effect your long-term career prospects, please get in touch with One Advice as we can offer you further bankruptcy advice, call today on 0800 048 1752.
If you are self-employed then your business will be closed down. Any assets from your business are usually claimed by your Trustee and you will have to hand over your accounting records.
Any employees of the business will be dismissed immediately. They may be able to pursue a claim with the National Insurance Fund for any outstanding wages, holiday pay and redundancy payment. They may also be able to claim for any money which is not paid by the National Insurance Fund through the bankruptcy order.
Your income will be looked at and your Trustee will decide if you can afford to make payments to your creditors, after expenses such as household bills have been accounted for.
If you can afford to make contributions to your creditors, then you will have to sign an Income Payments Agreement (IPO) which means that you consent to make fixed monthly payments towards tour debt for a maximum of three years. Even if you do not agree to the IPO, the Trustee can apply via the Court meaning that you will be ordered to make these payments.
If your earnings change at any point during the bankruptcy order then you must always tell your Trustee so that any amendments to these arrangements can be made.