After some advice

Redreider

Hi, I got declared bankrupt earlier this week and I have my interview over the phone next week. They have asked to supply accounts but I haven't got any or filed a tax return for 2 years. Can they check my finances? Am I likely to get a BRO for this?

Thanks in advance

mwarby

It's very possible, from what I understand they don't look favorably on you letting go of the admin side of the business. HMRC are also likely to pile on the pressure.

If you want to avoid a BRO or BRU (or reduce severity)I'd try and get the accounts done ASAP, as it will look better if you tell them it in hand as opposed to them having to chase for it.

Redreider

Thank you. There are probably a few other discrepancies they might find so pretty sure a BRO is inevitable. I just need a clean slate to start again

mwarby

I'd say admitting to discrepancies, explaining them and doing whatever you can to mitigate them (eg by filling in tax returns), will help

A BRU is like a BRO, but it's imposed by agreement with OR instead of by court. If you work with the OR a BRU is more likely, if your upfront the severity might drop. For example if they find out about severe discrepancies in accounts which you try and hide, you might get 10 year BRO, if your upfront you might get only 3(or maybe none). These numbers are just plucked out of air

Redreider

It's not severe discrepancies but I didn't get any advice prior to br and undercooked my income a little. I'm self employed so not sure if they can go through statements etc. I currently rent from my brother but will be moving out in a couple weeks and my expenditure will be going up considerably. Don't know if I'm better off just telling them my statement of affairs aren't quite right or just see what happens. Think a bru is coming but that won't really affect me that much

mwarby

Could you honestly describe it more like, my finances were in a bit of a mess and I've noticed I calculated my income wrong, the correct figure is £x

If so tell them, I doubt that'd be enough for a bru\bro

If on the other hand you deliberately lied on your statement of affairs and don't chose to come clean it won't come off so well if/when they find out

Redreider

Think that's the best way forward. Really appreciate you advice