Q: Can I start a business if I’ve previously been declared bankrupt?
Sep 10 2009
Answered by: Marc Barber Ask a question
If you are a discharged bankrupt, in other words if the period for which you were declared bankrupt has ceased and you have a formal document declaring that you are discharged, then in principle there is nothing to stop you starting in business. Practically, you may find that banks, lenders and suppliers may be reluctant to support your business based on your history.
If, however, your bankruptcy is undischarged then broadly speaking you cannot be in business, be a company director or borrow money.
The term 'bankruptcy' is sometimes misused to describe someone's company going into liquidation, administration or some other insolvency procedure. If this is the case then there is, in principle, nothing stopping a shareholder or director of an insolvent company restarting in business, assuming that they are not disqualified from so doing under a Company Directors Disqualification Order.
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