thinking of bankruptcy

marvinthemartian

hi, can anyone give me some advice. im thinking of going bankrupt, heres my situation.... i was self employed for 2 years, ceased self employment in feb 2008, havent worked since then due to personal reasons. i have around 15k of unsecured debt of which i am paying through a DMP. i have unpaid tax of 2k of which i have just recieved a distraint notice, and a possible CCJ through conkers for 1k (hasn't happened yet). i have yet to file my tax return for 2007-2008 but predict around another 1k. i am going to university in september and all these figures are doing my swede in can anyone please help ? should i commence bankruptcy do i have to file my tax return first. my degree is 4 years full time so may only be able to work limited hours to repay the BR ?

RichOneday_2

Your figures are relatively small for bankruptcy, although I'm sure they don't feel small to yourself.

If you did go down that route and don't have taxable earnings there won't be any 'repayment of the BR'. The chances are you would be in and out of bankruptcy within 6-8 months (although I'm not suggesting its an easy option) and won't be required to make any payments in to the BR. It all depends on whether the Official Receiver deems that you can afford to make a payment. If your monthly surplus is less than £99 you won't.

marvinthemartian

thanks richoneday,
do you have any advice on what i should do about the distraint order ?

deedee_3

If you are going bankrupt you don't need to do anything as the bankruptcy will take care of this. If you wait long enough then HMRC will more than likely do it for you.

You must take professional advice though so please ring one of the debt charities and go through your options with them.

Advice on bankruptcy.

The court/judge will normally ask whether you have taken professional advice that bankruptcy is in your best interest. If they believe you have not taken proper or sufficient advice then your bankruptcy may be refused. There are many places and organisations that you can get advice from, but the ones that people on this board have found most useful are listed below:

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

For general queries about bankruptcy you can contact:

The Insolvency Service Enquiry Line
Tel: 0845 602 9848
Email: [EMAIL="insolvency.enquiryline@insolvency.gsi.gov.uk"]insolvency.enquiryline@insolvency.gsi.gov.uk[/EMAIL]

(Please be aware that the enquiry line cannot give debt advice or counselling or advise you whether you should go bankrupt. They can only answer general/technical questions on bankruptcy)

Many people find that debt and bankruptcy is the cause or result of a period of great distress and anxiety in their lives. For some this can reach a stage where it is difficult to cope. So I would remind you that The Samaritans are available to help you through your troubles if the emotional side threatens to become overwhelming.

From Fermi's sticky at the top of the board

RichOneday_2

The distraint order might actually be in your favour although it sounds quite nasty.

You will need to get proper advice on this, CCCS are best in my opinion. Give them a ring asap.

The distraint order actually means the HMRC are getting serious with you and, in reality, they are the only creditor that will actually make you bankrupt despite it making no sense financially for them to do so. Other creditors certainly wont even though they can.

However, you have to be careful because the HMRC are the only people who can get a warrant to break in to your home to remove possessions hence the need for professional advice.