Yes, this is true for personal bankruptcy, so I imagine it would apply for for a sole trader/one person limited company.
There’s a lot of (understandable) fear and misinformation about insolvency and actually, in reality it’s not as stringent as many people fear. You’re not stripped of everything of value you have. There are rules about making sure bankrupts can maintain a “reasonable” standard of living, which in some cases can even include keeping a car. And yes, tools of the trade, such as computers etc wouldn’t be taken if there is evidence that someone really does need them to make a living.
For reasons I’m not going to go into, the Jack that triggers me most is “Making People Panic About Debt” Jack. There are honestly lots and lots of options to avoid insolvency. And if it comes to that, sometimes it can be the best way forward, scary as it seems.
But, if you don’t open the brown envelopes, you might run out options quickly….
Getting off my soapbox now. Glass of Irn Bru at the ready for the fitba!