Bankruptcy question

Goldendolphin

Hi All,

I've recently had a few unexpected bills sent my way from HMRC and council tax repayments from previous years. (All these are actually there mistakes in not charging me sooner - I could have paid the HMRC bill had they reached me when they 1st worked it out!).

On top of that I have a house (I rent out - I'm not living there) that is 20k neg equity at the moment. I have 2 very small children and am in reciept of benefits. I can afford the mortgage repayments at the moment on the property I own but they will go up in september this year and I wont be able to afford them anymore. I am currently renting elsewhere.

I was going to hold out until summer to see if I could create an income in time to pay the mortgage repayments on top of my rent where I live, (holding my head above water). But with these extra bills I've been sent, (about £5500 in total plus I have CC's that have been frozen I am paying off) I was wondering if its a better idea to go bankrupt now.
My worry is that if I have to go to court how long will I be expected to be in there? I have a very young baby who I'm breastfeeding and cant leave him for very long periods.
I've read somewhere that if everything is straightforward then you dont normally have to see a judge and its just a matter of signing paperwork?
Does anyone have any advice on the length of court time or if I would even have to go? I can provide more info if necessary.

thanks

GD

confused76

hi there and welcome
i would suggest calling one of the free debt charities for advice first of all:
https://www.nationaldebtline.co.uk
https://www.cccs.co.uk
https://www.citizensadvice.org.uk

they will be able to give you your options. bankruptcy is a last resort so please see what they say.

as for court....i was in for an hour and a half in total, 3 minutes in with the judge, although a lot of people don't even see a judge.
good luck in making your decision x

debtinfo

what sort of HMRC debt is is

Goldendolphin

Hi all,

thankyou. I believe some of the debt is unpaid student loan. some surcharges and the rest late payment fees (my accountants fault) and another tax my accountant hadnt told me to pay enough of quarterly in the last year I was working... The bill didnt get to me until an old accountancy firm forwarded the letter after they were threatening court. HMRC were sending it to the wrong address

Penelope_Penguin

Goldendolphin wrote: »

Hi all,

thankyou. I believe some of the debt is unpaid student loan.

Student loans aren't usually cleared in bankruptcy, sorry.

debtinfo

i may be wrong but i get the impression that the OP means SL deductions made by a business but not paid over to HMRC