petitioning for my own bankruptcy versus having the HMRC doing it for me

Allaaaaan

I am about to receive a statutory demand from HMRC for outstanding income tax that I am unable to pay (after illness meant that I had to give up self-employment 3 years ago), so I know that soon after this they will be petitioning for my bankruptcy....

..I have some other debts (NatWest bank loan, credit card, house repossession shortfall). I can just about find the £700 to make myself bankrupt, but as the HMRC are going to do this for me, my question is: is there any difference/consequencies/advantages or disadvantages to making myself bankrupt or waiting for the HMRC to do it for me?

alastairq

hi....none AFAIK....aside from the actual date of the BR. [with regards to your credit file]

And..of course, saving yourself £700?

fermi

Pro

- You save the fees.

Cons

- More likely to have a face to face interview as creditor petitioned. Not a big deal though, and might have happened regardless.
- A little less control over the timing, but if it's HMRC then not a huge deal either. They should get on with it.

antonic

Ho0w do you know this ?

Allaaaaan wrote: »

I am about to receive a statutory demand from HMRC for outstanding income tax that I am unable to pay (after illness meant that I had to give up self-employment 3 years ago), so I know that soon after this they will be petitioning for my bankruptcy.... Have they served with you a Statutory Demand under S268(1) a of the Insolvency Act 1986 ?
If they have then Bankruptcy could be imminent as you say

..I have some other debts (NatWest bank loan, credit card, house repossession shortfall). I can just about find the £700 to make myself bankrupt, but as the HMRC are going to do this for me, my question is: is there any difference/consequencies/advantages or disadvantages to making myself bankrupt or waiting for the HMRC to do it for me?

If HMRC make you bankrupt, the Court fees get added to your debt to HMRC.

rossireps

let them do it,save £700?
face to face interviews arent that bad. even though i was terrified i asked for one. sometimes you can explain yourself and body language better. good luck with whatever happens

lynnellen

HMRC made my husband and I bankrupt for business tax liabilities, we didn't have to go to court, and we both had seperate face to face meeting with the OR which i was really nervous about but needn't of been as they were very nice and understanding and looking back now im glad we had the meeting instead of a phone call, so dont worry .

Allaaaaan

antonic wrote: »

Ho0w do you know this ?

If HMRC make you bankrupt, the Court fees get added to your debt to HMRC.

I haven't been issued with a Statutory Demand yet, but 3 weeks ago when I was at work, an official from the HMRC called at the front door...my landlord told me that they had called although they didnt leave a message or leave any paperwork....a week later at work, the HR guy showed me a letter they had received from the HMRC asking them to confirm my address....so that's why I know that a Statutory demand is imminent

Allaaaaan

A big thanks to you all for the advice!