Going Bankrupt!

[chez1373]

Hello Everyone,
Im after some advice please ive just strated childminding dec 2007 i have 2 children on books but i have been informed by CAB to go Bankrupt do you know if this will effect my Minding business?
Any help and advice welcome

[Monkey1]

Sorry hunny i dont know. I would try the citizens advice or perhaps call the tax office. Hope thats a help x

[LittleMissSparkles]

I'm sorry I dont know either xxx

[Spangles]

Don't know much about this sorry. I don't think you can have a bank account if you are declared bankrupt but I don't think it should stop you having a childminding business?

Do you know an accountant who could advise you?

[chez1373]

Ive asked th etax office and they were umming and arring couldnt give me a definate answer so im really worried as ive not been this happy with a job in two years
Thanks for the reply Nice to know there is some where for childminders to go for help and advice

[manjay]

I don't think it should affect your business as such but it I would think you need more professional advice. I think there are probably too many ins and outs for us to advise you on. Don't know where OFSTED stand!

Also things to consider may be would you have to move out of your home if you are a home owner, will you be able to have a bank account, if not will parents always be willing to pay you in cash.

As Monkey says I think you definitely need some in depth advice about the legal implications on your business

Good luck

amanda xx

[LittleMissSparkles]

I know someone who went bankrupt and still worked although not for themselves, i think you should be ok to continue minding but credit wise you will be affected, my friend cant have a bank card or anything xxx

[chez1373]

You can have a basic bank account with a limited amount of banks,
I dont have a bank account at the min i use my partners account its very complicated, I was in the Army for 7yrs and left when i had my son, Unplanned!!! So left with nothing and had lots of bills to pay after 2 years of scrimping and saving its not got any better so was adviced by cit advice to go bankrupt
Hope this give you a better idea of my situation

[Mollymop]

Hi Ya!:)

I can understand you might feel concerned about going Bankrupt and it effecting your childminding business, but i don't think you should have any problems carrying on with your childminding as usual.

I do know you can not acts as a company director. You can not take any part in the promotion, formation or management of a limited company (LTD) without permission of the court.

So going bankrupt can stop you owning your own Limited company business but I think you will find it is different being a childminder as you are classed as self employed and haven't got a Limited Company (LTD)

Plus the courts will definately want you to carry on earning money. You haven't had to lease a place out for your business, etc, and you are not going to be a risk to creditors being a childminder.
You may have a problem though, when you loose your house as you will have to ask permission to Childmind from who ever you rent a house from, but it shouldn't be a big problem.

Hope I have helped you feel better.

Love Sandra XXX

[chez1373]

Thanks sandra,

Im at the cit advice in the morning to fill in the paperwork so will keep asking them for better info,

I live in a rented house and i dont own any property i do have a car but its not worth a lot at all.

Thanks again

[LittleMissSparkles]

You can have a basic bank account with a limited amount of banks,
I dont have a bank account at the min i use my partners account its very complicated, I was in the Army for 7yrs and left when i had my son, Unplanned!!! So left with nothing and had lots of bills to pay after 2 years of scrimping and saving its not got any better so was adviced by cit advice to go bankrupt
Hope this give you a better idea of my situation


no one on here would judge you Chez, you didnt have to explain but thanks forsharing with us

xxx

[Blaze]

If you go bankrupt you can not run your childminding business! It might be an idea to enter into a repayment programme (NOT an IVA)! One company you could call:

http://www.clearstart.org/l-debt.php?utm_source=yahoo&utm_medium=cpc&utm_term=national%2Bdebt%2Bline&utm_campaign=debt_helpline&OVRAW=national%20debt%20line&OVKEY=national%20debt%20line&OVMTC=standard&OVADID=941259531&OVKWID=7920026031

As they are a lot more experienced with these matters then CAB.

You will not be allowed any form of credit, only a basic bank account (with no chequebook or overdraft). However once you leave the program you will have a perfect credit rating & it does not effect your having a mortgage or running your business whilst you are in the programme.

Tasha:)

[Pauline]

Sandra has said more or less what I was going to say, as far as I know you should be ok but it would be wise to get some professional advice, perhaps CAB will help you more?

We are all here to help if we can so just let us know how you get on and we will certainly be able to help with the childminding side of things, if you need any advice :)

Good luck

come and just have a moan if you need to, it helps!! :)

[Mollymop]

At least, then, you won't have the problem of loosing your house, and you already have permission to childmind in the house.

Cit advice should be able to tell you more.
My mum and sister are going thrrough a Bankruptcy at the moment and I have been there for them, as it is a very stressful time for them. So i do feel very sorry for you.. Big hugs go out to you.

But from what I know from going to solicitors and cit advice and court letters that my Mum has received lately - it is people that have got a LTD company that loose their businesses only because they have assets in it - that is all the creditors and courts care about, getting as much money back out of you as they can. And they are not going to get any out of you with your childminding. But if they don't let you do it anymore they won't gain anything but they will loose out as they might want some small amount of money off you every month for a year after you go bankrupt and they won't get anything if you are unemployed.

Good luck, let us know how it goes

Sandra XXXX

[LittleMissSparkles]

Good advice from Tasha get some advice before going bankrupt xxx

[Blaze]

http://www.adviceguide.org.uk/nm/d_bankruptcy.pdf

(Sorry...right link now)!!!

The above gives you the ins & outs of being bankrupt.
Tasha:)

[Minnie Minx]

i'm with tasha, i've managed to find this on the web

If I declare personal bankruptcy but also own a business, what happens?

A: This applies if you are self-employed. Your business will normally be closed down and any employees will be made redundant. You will also not be able to be a company director again without court permission.


sorry if this is bad news maybe an IVA would be a better option for you

www.iva.co.uk (http://www.iva.co.uk)

xx

[Blaze]

If it was me I'd try & avoid an IVA & see if you be in a repayment programme, however, if this isn't suitable then an IVA is preferrable over bankrupcy...get further advice on your situation.
Tasha:)

[Mollymop]

How did you get on at Citizens Advice this morning. Did they give you more info?

Love Sandra XXX:)

[angeldelight]

Yes hope it went ok

Angel xx

[Banana]

Just wondering how you got on with this.

Another place you should speak to are these people

http://www.nationaldebtline.co.uk/

thats if you still need any information.

As far as I am aware I would agree with what Sandra has said. Bankruptcy effects individuals differently depending on their circumstances. Once you go bankrupt you are usually unablke to run a limited company as a director as your previous business would have had assets involved due to it being limited. As a childminder you are not running a limited company and the courts - as mentioned, would rather have someone able to work to repay some of the money that favour someone who is unemployed. Childminding is your lifeline and the way you will be able to pay any money back. Again im not an expert but its my understanding that this is how it would work. I could be wrong but think this is roughly how it works.

Hope you are ok and keep us updated if you need anything

xx

[Rubybubbles]

no one on here would judge you Chez, you didnt have to explain but thanks forsharing with us

xxx

was going to say the same! were here to listen even if we don't really know how to help lol!

My MIL went Bankrupt after having her son (now 9!) as she was running a pub and everything just went to much.

It was very emotional time but there is light at the end of the tunnel. I was going to say maybe an IVA if don't want to go bankrupt? A friend in the Army had one of these and after 5 yrs it finished but he managed to get a morgage 6 months after so it didn't really affect his rating after.

[littlesprogs]

I agree with tasha.

Once you've declared yourself bankrupt you cannot un your own business LTD or not.
My BIL went bankrupt and wanted to start up his own business but couldnt for a number of years unfortunately when he did finally manage to get his business up and running he ended up in prison after being set up by a so called friend so he still cant have his own business for a number of years lol.

I would try every other option before declaring bankruptcy.

Good luck x

[deeb66]

Catching up with some of the older threads.

Did you manage to get this sorted out?

[mum2two]

Hi. Although I'm new, and just looking at various threads, thought I'd answer this one for you, as I've been through it.

I went bankrupt last Jan, as was worried like you, but you can still childmind after bankruptcy, as you are classed as self employed.

I've since been discharged, (early :thumbsup: ), and have had no problems minding. It's just a bit of a nightmare declaring your income & expenditure for the recievers whilst your still bankrupt, as I was always all over the place, kids starting & stopping, increasing hours, then decreasing, & you have to inform them of every change in your income.

Hope it all goes ok for you.

Kelly x

[devoncm]

hi, my oh went bankrupt and although he was working he couldnt afford to pay anything back due to all the out goingshe had for household bills etc. you do get a bad credit rating for a while but he was able to pay around £60 to get his credit rating up again so you will be able to pay something to clear your bankruptsy hope this helps