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JGM
JGM, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 14635
Experience:  30 years as a practising solicitor.
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I have been made bankrupt and i work as a manager for my

Customer Question

i have been made bankrupt and i work as a manager for my wifes limited company will the order affect me
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: just with my wife who is the sole director i asked the insolvancy service and they say i should seek legal advise
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: Employee
JA: Anything else you want the Lawyer to know before I connect you?
Customer: at the moment no
Submitted: 12 days ago.
Category: Bankruptcy Law
Customer: replied 12 days ago.
I have the answer to my first question now, however I now need to know that whilst I am passing details of my creditors to the insolvency services, are my employees allowed to pay of a creditor and take ownership of my vehicle thus freeing it up for me to continue work without interuption
Customer: replied 12 days ago.
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Customer: replied 12 days ago.
I'm ok to wait
Expert:  JGM replied 12 days ago.

I am a solicitor in Scotland. You cannot be a director or a shadow director of a limited company whilst you are bankrupt. You said it is your wife’s company and then go on to refer to “my employees” so please be careful about what you are doing. However the answer to your question is that if a third party decides to clear one of your debts and the creditor accepts the funds, you would not be favouring one creditor over another becasue you are not making the payment. I hope that helps. Please leave a positive rating so that JustAnswer credits me for helping you today.

 

Customer: replied 12 days ago.
Thank you . Just to understand if I have debts to creditors and a third party decides to pay that debt it is ok to do so as long as the creditor is aware of my situation and accepts, and finally am I allowed to approach the creditors or is it the responsibility of the receiver or third party
Expert:  JGM replied 12 days ago.

It would be unwise to get too involved and approach creditors. The trustee would challenge the transactions as being unfair preferences under the Bankruptcy (Scotland) Act.

Customer: replied 12 days ago.
At present I am not allowed to spend money without authorisation of the insolvency service I can however ask my employees to pay tomorrow and talk then this would allow me time to prepare questions I'm looking for answers to
Expert:  JGM replied 12 days ago.

I’m not sure what you mean by questions. Do you mean the usual questionnaire issued about your affairs? All you asked was if someone else could pay a debt off for you and the answer is yes but you can’t have anything to do with it. If you do the transaction can be reduced?

Customer: replied 12 days ago.
I have a car and van in my name paid through the business
I need to keep both as part of my job , I also have mobile phones in my name paid for by the business those are the type if questions I need advise on.
Expert:  JGM replied 11 days ago.

You can argue that these items, whilst in your name, are beneficially owned by the company and should not form your personal estate.