Question about tax and bankruptcy

simon_71

Hello,

I have a bankruptcy hearing towards the end of the year and am looking for advice about what to do with an upcoming income tax bill. I believe the bankruptcy case against me is malicious and I am reasonably confident that it will be dismissed, but I want to plan for either outcome. I have no debts other than the disputed one alleged in bankruptcy, but will have a tax bill presented at some time which will be due in January.

So, what should I do about the tax? My choices seem to be...

(1) I know how much it will be so I could pay it now, thus ensuring it doesn't get affected by a negative outcome at the hearing. Or would this be reclaimed as a preferential payment?

(2) Or am I being a mug? Should I just let the tax bill be dealt with by the receiver as if nothing else, it will dilute the funds going to the malicious party if they are successfull? If so, are there any long term repercussions with my tax status if HMRC loose out this way?

Thanks for the help :-)

S

Ineedaname

Bumpety Bump!