Information for people who wish to enter into business while they are bankrupt
If you wish to apply for consent to enter into business, you must file an affidavit under Regulation 10 Insolvency (Personal
Insolvency) Regulations 2007. An affidavit is a written statement confirmed by a lawyer or Justice of the Peace (JP). You may wish to
seek professional advice to complete the affidavit, which must include:
• whether the business is a new business
• what capital you or anyone else will put into the business
• what provisions you have made to meet all taxes and regulatory requirements
• what plans or processes you will have in place to meet your health and safety obligations
• who your financial supervisor is and what will be the role and powers of that person
• any other information the Official Assignee may need.
The Official Assignee needs to make an informed decision, so please include the following information in your affidavit:
Financial matters
• how you became bankrupt
• whether or not contributions to your current bankruptcy will be available
• how an approval will benefit creditors in the bankruptcy
• your business plan
• details of bank accounts
• your twelve-month budget and cashflow projections – in some cases two or even three-year projections may be required
Practical matters
• your present employment status
• a description of your duties and responsibilities in the business
• the nature of your proposed business
• what plant or equipment you require and how you will pay for this
• whether staff are to be employed
• where the business will operate from, that is, home or leased premises – for lease premises, provide full details of the proposed
lease
• any other information that will assist the Official Assignee
From your Financial Supervisor (accountant)
You will also be required to provide:
What happens now
If consent is given, it will be given in writing. You must not enter into business until you receive the Official Assignee’s consent
in writing.
• A business plan, in the same manner that you would if you were applying to a bank for finance
• A letter from your financial supervisor stating that they consent to manage your business affairs, file Inland Revenue returns,
pay taxes and attend to other administrative matters