Is money owed to hmrc included in bankruptcy?

supa-girl

Hi all

Everytime you guys answer one of my questions, I think of another pressing concern.......:rolleyes: sometimes it feels never ending!

Just going through my partners list of debts - he owes money to hmrc for unpaid tax from when he was self employed. Will this be included in the BR? Their letters are especially nasty - not heard anything for a while but they did write saying they could force entry and take stuff.......:eek:

The things is, this was my house (rented) before he moved in and most of the stuff here is mine. I would have a hard time proving it though as I haven't got receipts and stuff.

Once the BR is sorted, will this cancel their right to come and take stuff or are they treated differently?

Thanks

SG

sieve

Hi SG,

Yes HMRC debt will be included in the BR. This is one of the main reasons I am going BR as I owe them alone over £15k in VAT and Self Assessment.

Once you go BR their debt is just the same as any other and they can't come and take stuff, just as any other creditor can't.

Cheers,

S

fermi

Yep. Debts to HMRC will be included.

Once the bankruptcy order has been made then they cannot take anything.

They shouldn't be able to force entry anyway as far as I know without a court order.

Link: Distraint

The HM Revenue and Customs officer will need to enter your home or business before the process of legally taking possession of goods can begin. By law, this must be peaceful entry. The HM Revenue and Customs officer may not make a forced entry without a court order, and these are very unusual. Denying the HM Revenue and Customs officer access does not of course end the matter; it is a wake up call however and will give you a bit of time to sort out your affairs. In particular any outstanding tax returns should be dealt with urgently.

Once the HM Revenue and Customs officer has entered your premises, he should tell you what tax is owed and give you a chance to pay it. If you do not pay, the process of legally taking possession of goods may begin.

supa-girl

Thank goodness for that!

Thank you - another worry to cross off the list.......998 to go now

SG

sieve

tibtib wrote: »

You will find that any debt regardless of who it is owed to will be wiped off. BR is a good thing if you owe a lot of money!

Not strictly true - crown fines aren't, student loans aren't, and stuff owed to the CSA isn't either I believe.

fermi

tibtib wrote: »

You will find that any debt regardless of who it is owed to will be wiped off. BR is a good thing if you owe a lot of money!

Not strictly true.

Student loans, CSA arrears, court fines and a few other types are not included in a bankruptcy.

EDIT: Snap

sieve

fermi wrote: »

Not strictly true.

Student loans, CSA arrears, court fines and a few other types are not included in a bankruptcy.

Snap!!!

supa-girl

Luckily, he doesn't owe any of those, so hopefully it will be a clean slate for him

Thanks again

Starry_Night

Hi

I went BR this morning and when I had my telephone conversation with the OR, I told him about my debt for self assessment that I will owe in April 2009 and he said that the this may not be taken into account in the BR and that the Inland Revenue can still chase me for this. Gutted!!!

supa-girl

I see - is this because it theoretically became due after your BR? OH is not self employed now and I don't think he will need to do a return for this tax year but that's a good point, and I will double check it.

I am sorry to hear this news for you though - you must be gutted!

SG

nervousmother

ok guys, my hubby is self employed. on the day of his BR he had to shut down his business. This then gives the figure for what he has earnt and what he owes up till that point. a Tax return is done for that period and the tax is included in the BR. (this happened 6th jan) he opened up his business on 7th jan and any tax he owes from that date till april is not included in the BR.

So if your OR says its not inc.. argue!
The debt was made up during bankruptcy!