Bankruptcy looming - first question of many!

creamcheese

Right, where to start. I’m sure there’ll be lots of questions from me over the coming weeks, but first things first….

My OH was issued with a Statutory Demand from HMRC yesterday. We are still trying to deal with that to get it set aside but are trying to sort out what will happen if they do make good on their threat (which is looking more and more likely). The main question I have at the moment is to do with our living arrangements…

We have recently bought a narrowboat to live on as opposed to the rented accommodation we are in at the moment. Our rented house is being repossessed (we think) and we have been dealing with a company appointed by the mortgage co. for a few months. Due to carp credit rating getting a new rented house is a pain (i.e. need a guarantor or 6 months up front). So we worked hard to save up for a cheap boat to live on and plan to move onto it in early September.

My question is what will the OR make of this if my OH is declared BK? We don’t want to be in the situation where they say it is for pleasure and we can’t have it as it will be our only home. Are expenses related to the boat allowable as it is our home? (For example, mooring costs and license) Another sticking point is that we cannot receive post where we are moored, so will be using a mailbox company – will this be a problem?

I have tried to keep this brief, so any other information you need, please ask. I would appreciate any assistance you can give us

peachyprice

Hi creamcheese, welcome to the forum.
Concerning your boat, do you own this outright and who's name was it bought in? I think the OR will see this as an asset and will expect you (if you are not going BR) to come up with your OH's half of the value.

Also to go bankrupt you have to have a fixed address.

I'm sure others will be along soon with more advice.

Anymore questions just ask.

creamcheese

peachyprice wrote: »

Hi creamcheese, welcome to the forum.
Concerning your boat, do you own this outright and who's name was it bought in? I think the OR will see this as an asset and will expect you (if you are not going BR) to come up with your OH's half of the value.

Also to go bankrupt you have to have a fixed address.

I'm sure others will be along soon with more advice.

Anymore questions just ask.

Thanks Peachy.

We own it outright and it was bought in both our names. It was a very cheap boat so if needs be I could probably find the money for his half.

Do you still need a fixed address for a creditor petitioned bankruptcy then?

peachyprice

That's good that it's in both your names only 50% to find if the OR does class it as an asset.

As for mooring fees etc., I would think that would be treated the same as you paying rent.

Sorry, forgot it's HMRC chasing you, I guess it doesn't matter if you don't have an address then;)

creamcheese

Good stuff.

We''ve sent another letter to HMRC asking to pay it by instalments but from what I've read they usually want the whole lot paying within a short space of time? If this is the case we will let them go for it and declare OH BK.

Anyone, ever, managed to successfully challenge the penalties and interest on a tax bill?