Is it best to go bankrupt before new tax year

[Deleted User]

Nigella wrote: »

As the Debit Wizard says "It is not a crime to be in debt and a legal way to Discharge your debts!"

life is too short and money is only a part!!!

so spend spend spend and then s*d the creditors and go bankrupt.

Glitzkiss

LizzieS wrote: »

They had already created more than one thread on similiar issues in the correct forum.

I've a feeling this one will soon become a regular in DT

Possibly but may have been a genuine mistake. Yes, they'd already posted on the relevant board previously but newbies often don't realise quite how caustic DT can be and mistake it for somewhere they can discuss their money problems

piemashandliquer

Cheers Glitz,

I had no intentions of rattling anyones cage, I am a newbie and had not posted this previously on another forum, I posted it after I was slighted in here.

I will not do it again............point taken

LizzieS_2

No problems P.

As you are being looked after in the correct place (for the same subject), maybe this could stay as a genuine discussion?

I've never been in the bankruptcy forum, so I was shocked by what I've now seen.

Firstly, I'm puzzled how anyone cannot pay their creditors but can afford a £750 bankruptcy fee.

Secondly, I am a little peeved (to say the least) that taxes are repaid for a full financial year - sorry but rewards like that should go to all taxpayers.

Finally, I'm astounded at what the OR accepts as 'essential' expenses.

PS p, not having a go at you personally.

Glad

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL]

eklynne

Poor poor people. How sad your lives must be to be so incredibly judgemental of others. :rolleyes:

eklynne

Broken_hearted wrote: »

You spent money now you arn't paying it back what more is there to know.

Probably quite a lot if the decision to go BR has been made.

jellygirl_2

piemashandliquer wrote: »

Can someone help me, my OH and I are both going bankrupt ASAP and both work and pay tax. I have seen somewhere that your tax code for the whole of that year will be nil.

We receive Housing benefit and am worried that this extra income will be used against us. Is this true and would I be best going BR before the end of this month in that case?

hi and welcome to the BR and living with it board:)

Please ignore those self-righteous people who have left you nasty comments - Im sure they will be singing from a different hymn sheet should any of them lose their job any time soon and cant pay their mortgages and credit card bills. Nevermind them, Im sure there are some people on here who will give you some knowledgeable advice. From what I understand, the nil tax code is not usually given if you go br towards the end of the financial year. I went Br yesterday so Im not expecting a nil code but just waiting to see really. All the best;)

skylight

Welcome to the BR board - the RIGHT place to be.

DT is rather... erm.... verbally violent...... But thats life. People are entitled to their own views and some air them rather loudly when hidden behind a keyboard.


Anyway! The point! Yes. The extra income WILL be used against you in housing benefit. I cannot remember for the life of me who took it all the way to ombudsmen and stuff but for the sake of housing benefit, its best to declare BR before the end of the Tax Year if you can.

And its £495 each to go BR. (OR and court fees).

tigerfeet2006

LizzieS wrote: »

No problems P.

As you are being looked after in the correct place (for the same subject), maybe this could stay as a genuine discussion?

I've never been in the bankruptcy forum, so I was shocked by what I've now seen.

Firstly, I'm puzzled how anyone cannot pay their creditors but can afford a £750 bankruptcy fee. It is not £750 it is £495 and people have to struggle to find it and I mean struggle.

Secondly, I am a little peeved (to say the least) that taxes are repaid for a full financial year - sorry but rewards like that should go to all taxpayers. Taxes are not repaid to the bankruptee, they are given to the OR. The bankruptee does not see a penny so no rewards. It is a leagal thing arranged between government agencies.

Finally, I'm astounded at what the OR accepts as 'essential' expenses.

PS p, not having a go at you personally.

With no likely hood of credit for the next 6 years or more a person needs to able to deal with anything that might hit them, like car breakdown, replacement white goods etc.

If you haven't walked a mile in someones shoes then who are you to judge?