Continue business after been made bankrupt

[Kuk]

Hi i am currently running my business and am in a very expensive IVA for 5 years which cannot be reduced at the moment i am considering going bankrupt due to cash flow problems. The business is very profitable so i want to continue with this company but start from scratch with no account customers which have caused all the problems. What i want to do is open a business account in my wifes name and continue trading after i become bankrupt, but im unsure if it is legal to set up the account before im bankrupt or wait till after. We looked at all options but now have no choice and would apprieciate some good advice.
Thanks for your time.

[rugeleyboy]

is your current business in IVA?

have you thought about factoring your invoices? it's not always a wise move to make and it is something i would never recommend but it releases cash flow?

if your business is profitable,why have you got bad cash flow?? cant you spend a very worthwhile day ringing and pestering customers to get some cash in?

my customers hate it when we do it, but it's my money!!!

[fairline]

Don't go bust unless you really have to. It should be the very last option. If you do, you will live with the stigma for a long time.

Better to look long and hard at your current invoice system and improve them to get cash in quicker, maybe even factor some of the invoices. Offer a discount for prompt settlement, classify your customers, those that pay on time and those that don't. The ones that don't, increase the prices. There are lots of ways to improve cashflow and if the business is a good one, persevere and stick with the IVA. Before long it will be easier to meet the payments and you'll be thinking what a great deal you did!

[themas]

In principle, there should be no reason why you can't go on running your business if you are bankrupt, but there may be some restrictions placed on you. I think that, as a bankrupt, you would find great difficulty in opening a bussiness bank account (and any you have now will be frozen and closed after your bankruptcy). I think there is nothing to prevent you setting up the account in your wife's name before going bankrupt, provided you do it openly with no intention of depriving creditors of money and explain it to the Official Receiver.

However, I suggest you contact Business Debtline (0800 197 6026) for free advice on this and your debt problems generally.

[dinawatson691]

first thing you do is consult first, or ask any people that would have experience so that you know whether that legal or illegal