Insolvency Resources for Sole Trader
Welcome to the Findlay James Sole Traders Home Page
Trading in business as a sole trader can be a precarious existence, as you are solely responsible for the debts of the business, due to you and the business being one and the same. A sole trader is personally liable for all the business liabilities and as such earns the right of privacy over his or her financial affairs. This is fine when things are going well, but in the event business takes a turn for the worse, it can lead to the nightmare scenario of losing all your assets.
In contrast, a limited liability company has to publish accounts at Companies House in return for it's status as an artificial person, distinct in law from those who control and own it. The directors and shareholders are then not liable for the debts of the business unless they have signed specific guarantees. While an insolvent company can be placed into Liquidation or Administration, this is not possible for a sole trader.
If a sole trader business finds itself in cash flow difficulties, the available insolvency options are either an Individual Voluntary Arrangement (IVA) or a Bankruptcy Order (Bankruptcy).
Which procedure is appropriate depends on the circumstances that apply, for more information please see our technical notes and video presentations on this web site or on our consumer debt websites at www.insolvencydirect.com and www.freedom4u.com.
In the event you would like speak to a professional advisor to get advice on your specific situation, please telephone our head office, or email for a call back at a convenient time.
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Call us on 01242 576 555