SOA Deficit

wurzella

I'm working through my SOA and tallying up all my expenses. The thing is that even after going bankrupt I'm left with a negative figure at the end. I still don't earn enough to pay all my expenses.

In the short term I'll be fine obviously as I won't have to pay tax for a while but once that kicks in again it appears that I'll be in the ka-ka once again. The fact of the matter is that my wife will be qualified very soon after retraining and be in a position to get a job, we don't forsee any problem in finding work.

What is the OR going to say/do about this? Will he take my word that my wife will find employment?

antarctica

Hello

When you say that you'll be fine cos you wont have to pay tax for a while. You do realise that you don't get to keep the tax?

If so, sorry!

wurzella

I'm sorry, lack of information there. HMRC is one of my creditors and I've been led to believe that because of the incredibly inflexible system they use they will write off all debts owed and the entire tax year that we are in now because they have no way of 'splitting' years. That would mean that I'm not liable for tax again until April 5th 2010 :rolleyes:

philnicandamy

depends how big a deficit you have?.....the OR & the judge will probably question how you'll be able to manage living without credit etc etc once bankrupt

wurzella

Around £150 per month. As I said, I should be tax free for a while and my wife will absolutely have a job in that time so I will be able to cope, but will they accept that?

To be honest I bought a bike a while ago (long while:embarasse) and I could save more than the deficit by using it, although I haven't yet. Do you think it would be acceptable if I reduce my travel costs for this and explain to the OR the situation?