What happens to your business in bankruptcy?

There is nothing to prevent a bankrupt from being self-employed.  So you can, subject to certain restrictions, start to trade again.  You will be responsible for keeping accounting records for this business and for dealing with the tax and VAT requirements for the new business.  You will need to register again for VAT if you meet the registration requirements.  You should not continue to use your pre-bankruptcy VAT registration number.

If you are self-employed, your business may be closed down and any employees dismissed.  Any business assets may be claimed by the trustee unless they are exempt (e.g. tools of your trade or vehicles used for business purposes) and you will have to give the official receiver all your accounting records.  You are still responsible for completing all tax and VAT returns.

Your employees may be able to make a claim to the National Insurance Fund for outstanding wages and holiday pay, payment in lieu of notice, and redundancy. Employees can claim in the bankruptcy for any money owed that is not paid by the National Insurance Fund.  For further details, you should contact the Redundancy Payments Service on 0845 145 0004

Getting in touch with an insolvency expert for free debt advice is as easy as picking up the phone.  Call the Leeds Debt Advice Helpline on free phone 0800 169 1536