Credit checks for IT contractot while in IVA/Bankrupt

[ContrataxLtd]

Thanks. Its just a one man band limited company....so if i chose to go down this route i would just put a family member in as director.

In theory yes but it's not something I'd advise, you should take professional advise before doing anything like this.

As I, and others have mentioned, there are consequences of this setup that may not make what you want to achieve achievable but a good insolvency practitioner should be able to advise and come up with a solution that may work for your specific circumstances.

Martin
Contratax Ltd

[Alan @ BroomeAffinity]

That'd make you a shadow director which, in law, is pretty close to an actual director.

[SueEllen]

Are credit checks normally done only against the directors of companies only?

Nope.

If a client wishes to take you on, and needs to do credit checks they will credit check the person doing the actual work.

You and any company you work for are separate legal entities regardless of whether you are a director or other officer of that company or not.

[TykeMerc]

Surely if you went personally insolvent and owned shares in a Ltd then those shares would be part of the assets that the Insolvency Practitioner would be interested in. Doubly so if the company was trading and solvent.

What you're planning just doesn't seem likely to make it in anything other than fantasy land to me.

[TheFaQQer]

That'd make you a shadow director which, in law, is pretty close to an actual director.

Which is something you really don't want to do if you are disqualified from being a director:

Trevor Lawrence (aka Trevor Fail), a bankrupt and disqualified company director was sentenced on 14 July 2014 to 27 months imprisonment at Northampton Crown Court after pleading guilty to acting as a director of 4 separate building companies whilst a disqualified director.

Linky

[SueEllen]

Which is something you really don't want to do if you are disqualified from being a director:

https://www.gov.uk/government/news/b...mpany-director

Lots of crooks actually do that.

One reason why agencies insist that you are actually a director of the company you are running even though they may not know why.

[TheFaQQer]

There is a thread from 2011 on UK Business Forums which explains why you shouldn't do this - here.

You may not be a director or take part directly or indirectly in the management of a limited company while bankrupt. This means you cannot be a shadow director and hide behind another person who is appointed a director while all the time you are telling him or her what to do.

You may however act in an advisory capacity and/or be an ordinary operative as long as the director has the ultimate power to say yes or no, rather than being obliged to act on your instructions.

[Safe Collections]

Lots of crooks actually do that.

Look at all the fuss with Compusource, that company had a nominated director and was a perfect example of why the practice should be (and hopefully soon will be) banned.

If an IVA is an option then that would legally allow the OP to carry on as a director and despite what some people say it isn't the death knell for your credit report. It is still "bad" as far as score goes, but it does demonstrate more of a commitment to paying creditors than bankruptcy does.

Needless to say we wouldn't recommend becoming an employee and having a nominee director, as if the OP exercises any control over the company at all, then they are undoubtedly breaking the law.

[Worcsman]

My tuppence worth.. Shareholding would have to be declared to the official receiver or declared on a your statement of earnings for an IVA. Most of what you earn, if not deemed an allowable expense would be then handed over to pay your debts.

One option is a short sharp shock if deciding on bankruptcy. Wind up your company and prepare in other ways, take a look at bankruptcy forums like the one on moneysavingexpert for explanations on "the other ways" comment, these include things like selling your car if its worth over 2k, getting a rental agreement before your credit file is trashed... Then pack in working and go on benefits for a year. Benefits are untouchable by the OR and you should be discharged within a year, debt free. If you have income during bankruptcy then you should expect to wait three years to be freed from paying back your debts. 12 months pain... Then the rest of your life having to declare that you were made bankrupt on insurance forms, finance forms, anyone can find you listed as a bankrupt with a quick internet search. Even pedophiles are treated with more respect than a bankrupt. They have the right to have their name removed from the pedo register. A bankrupt has no such right and will forever be listed and punished. IVA's I dont know about but there are forums for those too.

[TheFaQQer]

Even pedophiles are treated with more respect than a bankrupt. They have the right to have their name removed from the pedo register.

Why is there a register of people who love feet?