Contact Dodd Rescue...

*

*


Appointment venue



Wrong. There are a number of common scenarios where a director's personal assets may be at risk if a company falls into some sort of formal insolvency procedure. The most common ones are continuing to draw dividends from a company long after its profit reserves are exhausted, or trading on for too long after it's clear that the company has no reasonable prospect of recovery. The most important word in the above paragraph is "may". This is a complex situation and you therefore must speak

Bankruptcy

bankruptvy

Remember that formal insolvency processes are complicated, and only explain a tiny part of the entire procedures. Remember also that these rules also may apply to individuals working within partnerships so please speak to Dodd Rescue so that we can explain further.

Bankruptcy is the formal recognition that an individual is unable to pay their debts. It follows a strict legal process through the Courts. Individuals can petition for their own bankruptcy, or the process can be carried out by the people to whom they owe money ie a “creditors petition”.

As it is a Court process, fees are payable, but reductions in costs can be obtained by individual petitioners if they can prove they are unemployed or in receipt of other forms of benefit. The procedure starts with a bankruptcy petition, and if the Court considers it appropriate, a bankruptcy order will be made.

A bankrupcty order normally last for 12 months. During this time the bankrupt cannot obtain credit in excess of £500 (without the credit providers permission).

You can continue with self employment (subject to certain conditions). Continuing your employment will depend on the type of job that you hold.

Your bankruptcy will be a matter of public record on the Individual Insolvency Register.

If you are in doubt as to what bankruptcy means then the Insolvency Service provides extremely useful help and guidance at www.insolvency.gov.uk.

To find out more about how we can help please call either Carol, Jackie or Jeanette on 01768 864466.