|
It is always helpful to have a
plan a and b and sometimes even a plan c and d.
The following options are examples
of what might be available to a sole trader working as a plumber
with 2 employees who is in financial difficulty.
Plan a
Propose an IVA, offering to pay monthly
instalments and the equity in his property, whilst continuing
to operate as a sole trader retaining the business as it is
with two employees.
Plan b
Propose an IVA, offering to pay
lower monthly contributions, together with the equity in his
property. To also downsize the business and lay off the 2
employees, thus reducing overheads and profits, but at the
same time, selling 2 vehicles, with the proceeds being paid
into the IVA.
Plan c
Close the business and obtain PAYE employment
and then propose an IVA offering the business assets together
with affordable monthly payments.
Plan d
Petition for his own bankruptcy
and continue trading in line with rules of Bankruptcy. With
all non exempt assets being realised by the Official Receiver.
Further details can be found at
the Bankruptcy section of this site.
To navigate straight to the bankruptcy
home page click here.
Plan e
Do nothing. Wait for a creditor
to issue a bankruptcy petition against him, or enable creditors
to have judgments issued, thus increasing the debt.
Obviously, Plan e is not advisable
and we strongly advise against
it.
|
