Anderson Brookes


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0800 1804 933

As a Sole Trader, there is no legal distinction between your business debts and your personal debts. Therefore, in theory, the same solutions are available to deal with sole trader debts as personal debts.

Be Warned! Personal Debt Solutions Won't Usually Work for Sole Traders

In practice, many personal debt solutions will not be a realistic option for Sole Traders.

Debt Management Plans

The most widely used personal debt solution is a Debt Management Plan. Whilst a sole trader can technically set up a debt management plan it is unlikely to help with their business debts.

A debt management plan is designed to help people with unaffordable 'consumer credit'; this typically includes credit cards, store cards and personal loans. In addition to personal credit, a sole trader is likely to have debts related to their business; trade suppliers, business rates, HMRC etc. It is extremely unlikely that business creditors will agree to the terms of a debt management plan.

Debt Relief Orders

Most sole traders / self-employed people will not meet the criteria required to apply for a Debt Relief Order.

If you own a property, have debts over £15,000 or have a disposable income of over £50 per month you will not be able to obtain a debt relief order. Even if you meet the eligibility criteria, applying for a debt relief order will place serious restrictions on running your business.

Bankruptcy

If you are a sole trader and intend to continue running a business, the restrictions placed on you under bankruptcy law can make it extremely difficult to continue trading.

Your bankruptcy is advertised, bank accounts are frozen, your assets can be sold-off, your financial affairs are investigated and you can not obtain credit without disclosing the bankruptcy. These factors make it difficult to run a business.

Debt Solutions for Sole Traders

If you are a sole trader and are struggling with debts, it is crucial that you speak to an Adviser that understands the above.

Over 90% of the clients we help are Sole Traders. As a small business ourselves, we understand the pressures and issues relating to sole traders. For specific advice please call 0800 1804 933.

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Anderson Brookes Ltd

Anderson Brookes Ltd provides advice to individuals, business owners and company directors that are struggling with debt. Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority; our registration number is 669796. You can confirm our details on the FCA website www.fca.org.uk. Anderson Brookes Ltd is a limited company registered in England and Wales; company registration number is 4213701. You can read more about the services provided by Anderson Brookes Ltd by visiting OUR SERVICES. A printed copy of our Initial Disclosure Document will be provided to you before any Instructions are accepted from you. You can request a copy at any time by calling 01204 255 051. Some of the services provided by Anderson Brookes Ltd are not regulated by the Financial Conduct Authority.

Anderson Brookes Insolvency Practitioners Ltd

Anderson Brookes Insolvency Practitioners Ltd is a limited company registered in England and Wales; company registration number is 10324159. Registered office address is 4th Floor, Churchgate House, Bolton, Lancashire BL1 1HL. Brendan P Hogan is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Licence Number 101680.