Bankruptcy liabilities gone from £300k to £730k - how?

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Wentoutwithabang
Wentoutwithabang Posts: 1 Newbie
in Bankruptcy & living with it
Mrs has received a letter from the OR, being one of my creditors, telling her that my estimated liabilities are £730k :eek:. That’s more than double my estimate and three times more than what the judge was told.

Not that I care a great deal, now nearly 7 years on, but with a potential dividend have some creditors been a bit naughty here?

There was only a £22k shortfall on one property (included in my estimate) and the mortgage on the other is completely up to date, I'm still living in it.

Would I be able to find out or will the OR just ignore me?

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  • TheGardener
    TheGardener Posts: 3,303 Forumite
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    edited 28 May 2017 at 8:20PM
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    The Insolvency Service charge a fairly wopping chunk of administrative fees and charges. That will account for a large part of the difference. I believe the IS and Tax/VAT man get first dibs on any assets. Any tax owed probably continues to accrue interest and penalties up to the point the OR closes the accounts.
  • Mouse007
    Mouse007 Posts: 1,062 Forumite
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    TheGardener wrote: »
    I believe the IS
    Yup
    TheGardener wrote: »
    and Tax/VAT man
    Nope
    TheGardener wrote: »
    get first dibs on any assets

    In any event the numbers don't add up. If after the extra £430K there is still a potential dividend why the bankruptcy for £300k in the first place?

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  • pelirocco
    pelirocco Posts: 8,274 Forumite
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    HMRC arent preferential creditors , they have to wait in line along with every one else
    Vuja De - the feeling you'll be here later
  • TheGardener
    TheGardener Posts: 3,303 Forumite
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    I stand corrected on HMRC - but I understand the OR's fees are very high so that may well be the biggest addition to the original figure.
  • luvchocolate
    luvchocolate Posts: 3,254 Forumite
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    my debts totaled £145,000, my trustees bill was £21,047 ....£144 per hour.
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