Is it possible to set up a business e.g. cafe as a sole trader while you are bankrupt or can you set that up before you apply for bankruptcy? and will you have to pay your creditors anything out of the income of the business?
Yes you can. Many folks continue as self employed during bankruptcy, but you cannot be the Director of a limited company. It would not be wise to set up the café prior to bankruptcy as assets might be seized and any lease agreement terminated. This would be avoided if you set up the cafe after bankruptcy, though you need to remember that you are not allowed to have more than £500 credit during the term of the bankruptcy. This means that someone else might have to fund the project.
Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.