HMRC Bankruptcy

NotAllGood

Hi All!

Newbie here.

In 2011 I lost my home of 11 years after falling behind with mortgage repayments to Northern Rock. They sold the house, and we were fortunate to get a rented property close by, and keep the family together (I have a partner and 2 kids).

Over the past few years my business has not been doing so well, and I currently owe just shy of £13,000 to HMRC and they have this week sent me a Statutory Demand for the payment, or they will apply to make me Bankrupt at the High Court.

I own very little assets. Rent our home, no car, most things in the house don't belong to me, as we were helped out by family when I lost our home in 2011. I really do own just the clothes on my back, and a 5 year old computer.

There is an outstanding balance owed to Northern Rock of £30,000 as they sold my home for a great deal less than what is was worth, and I owe this £13,000 to HMRC.

Please can anybody offer any advice?

If it wasn't for my partner and kids, I'd have just been another suicide stat! but I'm determined to try and make things right, both for myself and my family.

Please let me know what would be the best step to take.

If I'm made bankrupt by the HRMC, what would happen to the £30,000 owed to Northern Rock.

Thanks for your time and any help you can give.

Best Wishes

Cobalt77

If HMRC actually do make you BR, they will be doing you a huge favour as it will save you the £720 BR fees!

And yes, provided the Northern Rock outstanding balance is just in your name that will be included in the BR too (as will any other debts like credit card balances, utility bills, council tax etc which are SOLELY in YOUR name)

However, before you get your hopes up too soon, remember HMRC may just be using the threat of BR to motivate you to take action and may not actually go through with it. They could equally go for a CCJ.

So, if they do go down the BR path, it could work out very well for you

NotAllGood

Thanks for your time Cobalt77.
Yes, the Northern Rock outstanding balance is just in my name.
How long does the BR path take? I have just received the Statutory Demand from HRMC advising that they are intending to present a BR petition in the High Court in London.
Will I have to go to court?

HappyMJ

NotAllGood wrote: »

Thanks for your time Cobalt77.
Yes, the Northern Rock outstanding balance is just in my name.
How long does the BR path take? I have just received the Statutory Demand from HRMC advising that they are intending to present a BR petition in the High Court in London.
Will I have to go to court?

How long is a piece of string? Could be 3 months...could be years.

You will need to attend an interview with the OR (official receiver). They'll tell you what you need to do.

I would start structuring my life based on you actually going bankrupt. I would not take out any further credit until you are discharged.

tigerfeet2006

Also ring and have a chat with Business Debtline and they will go through things with you. Any questions about the process after you are made BR just ask here and we will do our best to answer. Have a read of the forum and get an idea of what will be expected as well.

https://www.businessdebtline.org/