HMRC making me bankrupt

Harry1981

Hello

I am looking for some advise my partner is due in court this Tuesday 2 Oct for a bankruptcy hearing. HMRC is making him bankrupt due to a unpaid tax bill of £23k. We have offered the HMRC £20k in settlement of the tax bill but they declined and are proceeding with the bankruptcy next week.

My question is what happens from Tuesday is he bank account (Barclays) frozen with immediate effect? He also has personal credit cards are they also swallowed up in the bankruptcy? And what sort of things do the OR want to know?

Also with regards to a work vehicle my partner is self employed and has a work truck on finance what will happen to that?

Any advise will be really appreciated

Thanks Harry

TaxAvoider

Hi, you will get loads of advice on here , but what I can point out is that HMRC or anyone else for that matter can NOT make you bankrupt , it is the court's decision after listening to both sides of the equation. Your offer seems incredibly reasonable and I would not be surprised if the court told HMRC to see sense.

Good Luck

dancingfairy

I have not heard of HMRC accepting setttlement figures to be honest. Have you offered 20k up front with the remaining 3k on payment plan? Have any payment plans been offered and kept to/not kept to in the past?
Why is the tax bill so large/been ignored up until now?
Have you sought advice from BusinessDebtline or similar?
df

Colin_London

As to what Bankruptcy can mean, read through this:

https://www.gov.uk/bankruptcy/overview

arealfarmer

I stuck my head in the sand .
I was made bankrupt ( for a £20,000 bill that I disputed - leaking water pipe ) I had assets enough to pay the bill and have money left over , but after the receiver had had their cut @ £180/hour , £20,000 there was nothing left and I had to borrow off friends and family to avoid house being sold .

For the sake of £3,000 you will lose loads more .......
Borrow it , sell whatever you can to pay the bill , just DON'T let them bankrupt you !!! YOU STILL HAVE TIME !!!!

Harry1981

We offered £20k to settle the debt in full but they said no and no to re payment.

Hmrc wanted £500 a month re payment but we couldn't afford that so they went for bankruptcy.

I am hoping the judge will tell the hmrc what idiots they have been declining it but doubt it!

My partner has zero assets no house etc so nothing they can take!

Harry

antonic

Which Head of Duty is the bankruptcy being pursued for ? (VAT/CIS/SA).

Have ALL relevant tax returns been filed ? - If they havent HMRC will not consider any repayment arrangement.

HMRC dont usually accept full & final offers, as you have discovered they will insist on payment in full.

Why shouldnt HMRC pursue your partner for the WHOLE debt, their job is to collect money and to protect the public purse, if your partner cant pay their debts as because they become due , then they are trading insolvently.

dojoman

TaxAvoider wrote: »

Hi, you will get loads of advice on here , but what I can point out is that HMRC or anyone else for that matter can NOT make you bankrupt , it is the court's decision after listening to both sides of the equation. Your offer seems incredibly reasonable and I would not be surprised if the court told HMRC to see sense.

Good Luck

I would be amazed if the court did this, there is still a £3000 shortfall, people have been declared BR for a lot less.

TaxAvoider

Well ok not writing off the 3k but not accepting a 500 monthly payment is also shortsighted, I was at one stage on a 100 month 250pound payment plan !!! You should at least ask for a 3month postponement, I was given that even though at stage it was too late, but you never know you might be able to find the 3K somewhere. I would agree that BR is by no means an easy way out and the following six years will be tough. Good Luck whatever you end up doing, you are in the right place for advice.