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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have recently been made bankrupt as a dental practice owner.

Customer Question

I have recently been made bankrupt as a dental practice owner. There is a charge on the entire contents to include equipment as security on a loan from 2010. Obviously the trustee will want to realise any assets and apart from a loss making leasehold practice, there are none as the bankruptcy is due to a failed IVA. The goodwill is the only asset.
Just before the order, the practice converted from sole trader to limited company with a friend as director. The trustee requests that the transfer be reversed or an offer made value of the business. The director will make a low offer. If this is not accepted and the trustee eventually works out how to sell the business, can I just walk out and contact some of the patients in order to rent a room somewhere to continue working? Your comments would be appreciated.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

my name is ***** ***** I will help you with this.

Alex Watts :

Do you have any contract with the company or Directors etc?

JACUSTOMER-xhaf7cqg- :

No.

Alex Watts :

Ok - then yes you can leave and start up on your own

Alex Watts :

There is nothing stopping you whatsoever

Alex Watts :

If there was a contract which restricted what you could do then you would be stuck

Alex Watts :

But there is not. So you can just leave and set up on your own

Alex Watts :

Can I clarify anything about this today please?

JACUSTOMER-xhaf7cqg- :

I am not concerned with with the limited company as the director is a friend. I am more concerned with the trustee of bankruptcy.There are a couple of issues with the trustee. Can I remove the patient's records with the server and they are also backed up externally, to work elsewhere. My governing body,the General Dental Council requires that I complete treatments or make arrangements treatment to be completed by another practitioner and some may take a year or two and obviously the goodwill is of value to me. How much control can the trustee have over this and will there be legal repercussions if I leave with the goodwill leaving an empty practice. If the try to sell the practice. I do not wish to be around when potential buyers come looking.The transfer to a limited company apparently contravenes Section 339.ie trasfer undervalue.

Alex Watts :

No you can't remove records, they belong to the Company, not you.

Alex Watts :

The trustee will have total control, you do not have any assets, they belong to the trustee

Alex Watts :

Therefore you need to be very careful.

Alex Watts :

You should seek permission before you remove any records.

Alex Watts :

Can I clarify anything else ?

Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.


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