Sole trader bankruptcy specialists. Our experts can help you avoid it
If you’re a sole trader struggling to solve your business’ financial challenges, it pays to seek professional help from sole trader bankruptcy specialists. We’ll guide you through the solutions available and help you decide what’s best for your future.
We offer insolvency solutions for sole traders and partnerships that allow you to clean up your debts. In many situations, you can continue to trade as normal. You can find out more about these solutions here.
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What is sole trader bankruptcy?
Sole trader bankruptcy is a legal process. You can apply voluntarily as an individual. Or you could be forced into it by a creditor when you or your business is in an insolvent position and cannot recover.
You’ll hopefully be aware that as a sole trader you’re personally liable for your business’ debts. This means that bankruptcy can impact your personal wealth, as well as your business’ assets. If you own any property, such as a family home, this tends to be sold to help with payments to your business’ creditors.
How can we help with sole trader bankruptcy?
If you or a creditor believe this is the only possible path for your business, a petition for a Bankruptcy Order needs to be presented in court. If you’re applying for sole trader bankruptcy for your own business, please seek the advice of a licensed insolvency practitioner. Not only can we look at ways to avoid bankruptcy completely, we can also help you complete the complex forms that need to be submitted as part of the bankruptcy process.
If the bankruptcy order is approved, the court will appoint an official receiver to take control of your assets. The receiver will then organise for the valuation and sale of these assets to pay your creditors.
At the end of the bankruptcy period, which is usually 12 months, any remaining debts are written off. The bankruptcy will remain on your credit rating for six years and you’ll be unable to hold some positions inside a business, such as director.
Sole trader insolvency and bankruptcy is often a stressful time for everyone involved. As licensed insolvency practitioners, we’re specialists in this area. We can give you expert advice on your current challenges and could help you recover your financial position without the need for bankruptcy.
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