In Limbo

Ultrasound · 13 May 2016 at 1:05PM

Hi. I'm a long-time lurker and first-time poster. Just want to say the wealth of advice and reassurance on this board is fantastic and I hope someone will be able to advise me with my predicament.

My situation is quite complicated. Please bear with me!

Firstly, I've always been rubbish with money. If I've got it, I spend it, if I haven't I go without. I've been self-employed in the entertainment industry for the last ten years or so, during which time I've never kept my finances in check, resulting in most SA returns being filed late and almost never having any money over to pay may taxes (or late filing/ payment penalties!)

My work is anything but regular. Some months I might earn thousands, most months maybe a few hundred. I've had a 'head in the sand' attitude to it all for years, particularly as both my sister and brother in law worked for the insolvency service, and I was too embarrassed to do anything about it.

Long story short, I was served with a SD from HMRC back in March for £16.5k and just ignored it as I knew there was no way I could pay them anything for the foreseeable future. I'd paid £5500 to them last autumn following a visit from an enforcement officer with the promise of more but work dried up and I couldn't afford any more payments to them.

I'm now waiting to be served with a BR petition as I can't afford to do it myself. Does anybody know how long this is likely to take? I'm not worried about the extra cost on my BR as I have no assets, not even a car.

All this has contributed greatly my recent split from my partner and although we are still living in the same (rented) house, I'm under orders to (and want to) move out as soon as possible.

I know I've been a silly beggar, I just want to take what's coming on the chin, lift the cloud that's been hanging over me for years and make a new start. I'm actually quite confident about getting on with my life post-BR now, I just wish they'd get on with it!

Thanks in advance for any advice you could give.

National_Debtline · 13 May 2016 at 1:41PM

Hi

I'm not sure how long it's likely to take myself but I suggest contacting Business Debtline. They will have advised many people in a similar situation to you.

www.businessdebtline.org

James
@natdebtline

tigerfeet2006 · 13 May 2016 at 3:50PM

I agree with James, get in touch with Business Debtline.

I am afraid the BR order will be how long is a piece of string situation.

Ultrasound · 13 May 2016 at 4:38PM

Thankyou both. I've just spoken to Business Debtline and apparently a creditor has 4 months from issuing a SD to petition for the debtor's bankruptcy, after which it's back to square one for them. Thought I'd share in case anyone else is in a similar situation.

KeepOnKnitting · 14 May 2016 at 1:03AM

I think it is probably wise for you to move out before the bankruptcy happens. You won't have to declare it to an existing landlord, but you may find it harder to get a place afterwards. Good luck.

TheGardener · 14 May 2016 at 8:00AM

The wait may be frustrating but there is much you can do in the meantime to prepare. Finding somewhere to live should be a priority - if a fresh start is to have the most benefit and your relationship is over them moving on will be best?
Once you are BR, your living costs will be accounted for in an IPA and it would be complicated and potentially a source of further friction with your ex if their income ends up being taken into account. As keekonknitting says - its usually easier to get a place before letting agents have to be told about the BR.

Planning is key while you are waiting - have you got a basic bank account set up with a BR tolerant bank (there is far more choice than there used to be) Have you got all your paperwork organised (bank statements etc) for when the OR asks for it. A record of your income as best as you can evidence it - all this will make the process much smoother.

Ultrasound · 28 September 2016 at 12:17PM

Hello again all, it's been a while but here's an update for those that are interested.

I eventually moved into my own place at the beginning of June. Work has been fairly sporadic over the summer. Barely enough to keep my head above water. I've actually started signing on in the hope that I can get some help with my rent and council tax as I've got my two kids at least half of every week and need to feed them. My ex is claiming the tax credits and child benefits applicable to the children which means I can't.

I ended up being served with a bankruptcy petition at the end of August, although it was dated the middle of June. Apparently my change of address hadn't made it through all the channels of HMRC, surprise surprise! My BR hearing was yesterday and although I didn't attend, I did send an email to the court apologising for my absence and stating my new contact details to make the process easier for everyone. I've spent hours since trying online to find out the outcome of the hearing (insolvency register, gazette etc) but I guess I'll just have to wait for the OR to get in touch. Not knowing what's happening is just the worst thing.

National_Debtline · 28 September 2016 at 3:31PM

Hi Ultrasound and thank you for the update, it is always useful to hear how these things pan out.

Missing the bankruptcy hearing is a good deal less serious when you're not looking to dispute the petition. Now that the order appears to have been made (subject to your name popping up on the Insolvency Register - shouldn't be long), the administration of the bankruptcy itself should be more or less the same as if you had petitioned for it yourself.

Dennis
@natdebtline

worriedmamma · 28 September 2016 at 5:04PM

Hi, I'm glad it's kinda over for you - I think from here on in you'll be surprised at the process, I certainly am. I've felt this process much less stressful then having the worry of debt. Hope you hear from the OR very soon, I'm sure you will.

In Limbo

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