tax man,can i keep my house

richireland

RAS wrote: »

depends if you are held to have any beneficial interest in that property.

You really do need proper advice on this, not just forum help.

yeh i think so
anyone on here know anybody thats good who could help?

Rikki

RichOneday wrote: »

No a charging order is for an absolute amount. There will be daily interest added up to the charging order date, but then it becomes an absolute and effectively whittles away with time due to inflation.

Thank you.

I was told when the Legal Aid board put a charge on the property it incurs interest.

RichOneday_2

As the tax is a business debt you could try ringing Business Debtline 0800 1976026. Free charity advice.

RAS

Nicked from tiger

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.

CCCS 0800 138 1111 National Debtline 0808 808 4000 Business Debt Line 0800 197 6026 CAB – Contact your local office and ask to speak to a Specialist Financial Advisor. Insolvency Service- 0845 602 9848


And seruiously recommend that you post on the bankruptcy sub-forum, just go to the front DFW page and look above the DFW threads.

RichOneday_2

Rikki wrote: »

Thank you.

I was told when the Legal Aid board put a charge on the property it incurs interest.

From courts service:

If a creditor has taken the debt to the County Court, they cannot usually add extra interest once a charging order has been made.

There may be the odd exception if you have been advised otherwise.

Rikki

RichOneday wrote: »

From courts service:

If a creditor has taken the debt to the County Court, they cannot usually add extra interest once a charging order has been made.

There may be the odd exception if you have been advised otherwise.

Possibly different as they are lending the money to cover your legal costs. I'd be interested to find out, but never mind.

richireland

thanks guys you have all been great
i will give one a ring and let you know how i get on

thanks again
rich

fermi

Please get some professional advice ASAP.

Property issues are not my thing really, but I think the purchase of the beneficial interest in a property is primarily intended for use when the OR/trustee is dealing with the bankrupt's "family home" rather than additional properties.

Professional advice on what may happen to the property and/or any income from it (even with no equity) is essential.

rog2

richireland wrote: »

yes its my house and i rent it out
i have a morage of £189k and its worth about 200k thats if it sells in todays market

Hi richireland - I was declared bankrupt by HMRC, and, yes, we DID manage to keep the house, but it was, and in some respects still is, an absolute nightmare of a 'journey':

As others have said, HMRC is the one creditor that you can be sure will take you to the ultimate and petition for your bankruptcy - I have my own feelings about why they are the Uk's largest 'creditor petitioner' of bankruptcies, but those are not relevant to your thread.

Once you have been declared bankrupt, the OR - or Trustee if one is appointed - will, very quickly 'vest' his/her interest in any beneficial interest that you have in any property. He is not going to 'chuck you out' immediately, nor is he going to 'force' any immediate sale. In the first instance, after having agreed the amount of your BI (which you are entitled to dispute) he will, normally, offer you, your partner or a close relative/friend the first opportunity to 'buy' any beneficial interest that you have in the house and will, normally, set a time limit for you to raise the necessary finance - this is, usually, one year, unless of course you tell him that you do not wish to purchase the BI.
A Trustee/OR will not, normally, use the power of the Courts to 'force' a sale, although they will hold on to this option as a 'last resort'.
In our case, and in most cases involving bankruptcy, the procedure is quite 'civilised' and we had quite good two-way discussions with my trustee and were able to negociate quite a substantial reduction on his first 'price'.

Our case took almost 18 months to resolve - and it wasn't complicated - so be prepared for a long 'struggle'.

Fermi does mention a very valid point regarding the fact that the house is rented out - I'm not too sure how the OR/Trustee would view this, as normally, the purchase of BI relates to the 'Matrimonial Home'

http://www.sghlaw.com/insolvency/articles/BankruptcyTheMatrimonialHomeFeb2004.pdf

Incidentally - I was told, when I looked at this as a possible 'alternative', that any 'charge' on the property would continue to attract interest at 8%

Good luck