Hi Rich2288

I'm not sure why this advice was given as it certainly does not stop your wife looking at a trust deed. I'm guessing that they may think there is something within the rent agreement which may be an issue, but this would be unusual.

It's difficult to say with any degree of certainty without a full review, but I don't see the self employment or rent position being an issue.

Mark

Hi Rich2288,

Did you provide a copy of the lease agreement to the company to review? Within rental/lease agreements it can make reference to Insolvency termination clauses. It may be something like this which has caused the company to say that your wife cannot enter a Trust Deed. In my experience different firms and different Insolvency Practitioners can view things differently and it's always worthwhile seeking a second opinion.

At the initial meeting or assessment an advisor should be able to give you an idea of whether a Trust Deed is a suitable option or not. When you say completing the relevant paperwork and sending it off it suggests to me that you didn't sit down with a qualified advisor to discuss the options?

We deal with a lot of self-employed people and there normally isn't a problem.

What type of business is it that your wife operates? Does she have stock etc?

Hi Rich2288

It interesting from your post that the paperwork was completed and posted rather than seeking face to face advice.

If your wife has rented/leased property, there may be an irritancy clause within the terms & conditions which can bring the agreement to an end. Most agreement will contain such a clause, however in the vast majority of cases I've dealt with, the landlord has no enforced this as they will only end up with an empty unit which they then need to re let.

It's unusual for them not to give a valid reason, although I am aware of companies not proceeding on the basis of someone being self employed.

Mark

Hi Rich2288

Sorry I meant to ask if the company you dealt with were based down South.

I know from our Cardiff office that there is far more work involved in dealing with self employed people in IVA's and wonder if they've thought that this was the case with Trust Deeds.

Mark

Thanks for all the really helpful replies. It was done through a call centre advisor for Money Advice Group who went through the details and recommended a trust deed and sent out the paperwork to be completed and then sent back. After this my wife had a call from Knightsbridge Insolvency service who I think are based in Manchester and it was them who said that she could not proceed due to having rented business premises.

She is a beauty therapist and so does have some stock but does not operate any credit through the business for purchasing and as far as we are aware there is nothing in the lease stating that a trust deed would be an issue (We did not send any copies of the lease as were not asked for this) - the landlords are also local business owners and are very relaxed with regard to the property so cannot see it being an issue as long as they continue to receive their rent.

Would you recommend sitting down with another locally based firm to go over the options again?

Thanks again for all the advice

Hi Rich2288.

It's always a good idea for anyone to consult with more than one source of advice.

When self-employment is involved this is especially the case. It's sometimes significantly more complex for the trustee to handle this type of work and it seems that some firms welcome that more than others.

Hi Rich2288

From what you say, I'm not sure why there is a problem and a Trust deed could be easily structured to take account of the self employment and even any stock issues.

Mark

Sorry I meant to say you can look in the lease for an Irritancy clause which will appear more often than not, however this like any other part of the lease only gives the landlord the option and is seldom acted upon.

If there is no clause, then there is no issue.

Mark