What impact does bankruptcy have on my self-employment?
December 15, 2023 | 40,00 EUR | answered by Erwin Hausdorf
Dear bankruptcy lawyer,
My name is Thomas Busch and I have been self-employed as a craftsman for five years. In recent months, I have been facing increasing financial difficulties as my workload has significantly decreased and I am struggling to keep up with my expenses. Now I am considering whether bankruptcy would be the right solution for me as a self-employed individual to resolve my financial situation.
However, I am concerned about the implications of bankruptcy on my self-employment. Could it be possible that I am not allowed to work as a craftsman after bankruptcy? How would bankruptcy affect my customers and could I potentially lose my reputation as a reliable craftsman? What specific steps would I need to take as a self-employed individual if I decide to file for bankruptcy?
I would like to understand how bankruptcy would impact my self-employment and if there are possible solutions to resolve my financial problems while still maintaining my self-employment. I would greatly appreciate it if you could provide me with specific information and guidance so that I can make an informed decision.
Thank you in advance for your assistance.
Sincerely,
Thomas Busch
Dear Mr. Busch,
Thank you for your inquiry regarding insolvency law. As a lawyer specializing in insolvency law, I understand that the decision to file for insolvency is a significant and important one, especially when it concerns your livelihood as a self-employed individual. I will therefore explain in detail the implications that insolvency can have on your self-employment and the steps you should take in this case.
First and foremost, it is important to understand that insolvency does not automatically mean that you can no longer work as a craftsman. On the contrary, in most cases, you can continue your self-employment even after insolvency. However, you may need to meet certain requirements, such as in terms of accounting or tax payments.
Regarding the impact on your customers, insolvency can of course have a negative effect on your reputation as a reliable craftsman. However, it is important to be transparent and honest with your customers and inform them about your financial situation. Many customers appreciate openness and trust and will understand your situation.
If you decide to file for insolvency, there are various steps you must take as a self-employed individual. Firstly, you should consult an experienced insolvency lawyer to discuss your options and obligations. Together with your lawyer, you can then file for insolvency and initiate insolvency proceedings. During the process, you will need to provide regular updates on your financial situation and cooperate with the insolvency administrator.
However, there are also other solutions to resolve your financial problems while maintaining your self-employment. One option could be an out-of-court settlement with your creditors to restructure your debts. Another option could be insolvency under self-administration, where you can restructure your business under the supervision of a trustee.
In conclusion, it is important to seek professional help to clarify your financial situation and find the best possible solution for you. Do not hesitate to consult a lawyer specializing in insolvency law who can advise and support you competently.
I hope that this information has been helpful to you, and I am available for any further questions you may have.
Best regards,
Erwin Hausdorf
Lawyer specializing in insolvency law
