Help: feeling desperate being made bankrupt by IR

dreamon_3

Can anyone give advice? Today I have been told by the Inland Revenue that they are starting bankrupt proceedings against me for upaid tax and I'm so frightened and worried about what will happen. I have been trying to sort this out for years but it has now got so out of control that it has made me ill with worry and severe depression.

I was self employed with my husband (partnership) and the business went under six years ago, we traded for about 18 years and during that time we always had problems with Tax and we did take out an IVA at one stage and three years ago we sold our house to pay off so many debts and the IVA (as they were going to make us bankrupt), terrible times - anyway from the equity of the house we just was able to pay of the debts and had enough to pay rent up front for a year (bad credit rating, only way we could get a private rented property), we didn't have enough to pay off the tax, I have been trying to sort something out with Inland Revenue but ill health (caused by all this horrible affair) has resulted in myself not working and now because of the crazy rent we are paying and my husbands wage we are back to square one with mounting debts. My husband is in a steady job and the IR have agreed to take repayments to clear his debt but becuase I have no means of paying them back as I haven't worked for nearly six years, they are going to make me bankrupt.

We haven't got ANY money and live pay cheque to pay cheque. We don't have anything of any value, and have basic joint bank account.

Do I await the baliff's, will the account be frozen, do I have to go to court.

I'm losing my mind with worry, we have already lost out home and now things are even worse.

Will it be OK, anyone know if being made BR by the Inland Revenue is more difficult than going BR yourself or do I jump ship now

homeworkgirl

Hi dreamon, I'm afraid I am not in a position to advise you, but I just wanted to say that I really feel for you and what you are going through, it must be so worrying for you and I do understand your depression as I have been through it myself. As your post is so late, you may not get a reply for a few hours now, but let me tell you that as a newbie to this forum, I have found the people on here to be very knowledgeable and helpful and I am sure that someone knowledgeable will come on and reply to you very soon. In the meantime, all the best of luck to you.

dreamon_3

Bless ya Homeworkgirl. Im sitting here early hours of the morning not able to sleep, not even a bottle of Barcardi to see me through this, tea with sugar only and crying like a baby. Thought when we sold the house we could start again, but it all went wrong. I knew this was going to happen sooner or later I was praying for a miracle but it didn't come. I'm just so scared that it's the big boys the IR that I am dealing with. I've spoken to the IR and told them I am physically and mentally shot to pieces and I can't fight it anymore so they will have to do what they have to do, but I'm so worried, I have two teenagers who think I need to be locked up as I'm in such a state. My husband and I, although living together have drifted apart and are like two lost souls, I haven't even told him what has happened :embarasse

homeworkgirl

Poor you. We nearly lost our house once when my partner was out of work for a while and I well remember the sleepless nights. Luckily he got another job just in time. I really do hope that things are not as bad as they seem for you.

gravitytolls

Oh darling. You need, most urgently to speak to someone ion the know. CAb are marvellous, you know. They'll tell you what's going to happen, and help you prepare for it. Okay, you'll still be worried, but fore warned and all thjat. It's better than being in the dark isn't it? At least then you can get some semblance of normality back in your life, because you're not waiting for something to happen, you'll understand the timetable.

You also need to think about housing. Are you on the council list? you must do so, they will ask about your circumstances, and will be aware that you will become priority at some point.

You do need to speak to your husband, but perhaps you should only do so after you know what's going to happen.

If you relaly feel you can't cope with the strain, visit your GP. Be completely open, I assure you, they've heard it all before, know exactly what is needed, in the short term, to help you cope with the long term.

God bless,a nd good luck. Keep us up to speed, please.

dreamon_3

Thanks gravity. Ive been reading up on other threads about it and I feel even worse, I'm now worried that when we sold the house apart from paying mortgage debts, council tax debts, family debts, old gas and electric bills, old business debts, the IVA, legal fees (as we we also went to court as we didn't agree what there were charging - we lost the case - and that's another story) paying rent up front etc etc etc etc that the OR will of seen that we should have paid him first and not everyone else. The damage is done now we have NO money hidden away, but will that make things even worse for us ?

Would it be too late to file for my own BR so as not to get in deep with the OR.

God this is hell

madoldbat

Dreamon welcome you have have come to the correct site for support and help.We have all made mistakes and know how much you hurt.So big hug to start with.
I am so sorry to read how bad things are for you .Regret I can be off little help with the Tax problem but I know there will be some more knowlagable people along soon who can.
Please make an appointment with CAB money advisor they will guide you through the procedure and help reassure you,as will the good folks on here.
Are you getting all the beniffits you are entitled to?
You dont say if you have seen a doctor about your illness.Please if not do ,(I needed some medication it helped me get things in preportion at the time it didnt make anything go away but OH and kids didnt suffer so much.)
Hang on in there we will help all we can.Keep posting.

scaredwitless32

Just wanted to echo what has already been said before, deffinately get advice from the CAB, make the appt to see a financial advisor asap as there will probably be a bit of a wait. THey are great, very helpful and will to some degree put your mind at rest, in the way, that they will know what the OR will look for and want to know.
There are lots of extremely knowledgeable people here on this board, DebtDoctor is and actual CAB adviser and is a regular poster,there are also people here that have been taken or forced down the BR route by IR themselves, so they will be able to advise you also. I really feel for you, and know a little of the stresses you are under, although looking back, 'our' situation seems pretty pathetic compared to others on here, who stand to loose their homes and livelihoods, assests etc! I kinda feel guilty for feeling the way I did about our situation, but then I cant stress how much relief BR has brought to us?!.............one way or another it will get sorted, if you have nothing more to loose, then things cant really get any worse maybe? Now whether you BR yourself, or wait for the IR to do it, I cant comment on as I have not had to deal with them, I'll leave it to the others who have experienced it to advise on that one.
I would, if it was me, try and talk to you husband about what it going on, I know , easier said than done, but holding all this back is not going to help your relationship .............????????????
Good luck, I hope everything works out for you , keep posting, its amazing how just by 'talking' it gives a bit of relief!
x

fermi

Yes, HMRC are probably doing you a big favour. And will save you the fees.;)

There won't be bailiffs so there is no worry there.

Who is your basic account with?

There are several people who post on this forum who have been pushed into bankruptcy by HMRC. Some have let HMRC do it, while others have jumped themselves so they have more control. Hopefully they will notice this thread and add their own experiences and take on your situation.

A site that has been suggested to look at and seems very good is:

http://www.taxaid.org.uk/

with some specific info on how HMRC go about making you BR here:

http://www.taxaid.org.uk/tax_debt.cfm?secnav=10

Good luck and keep bugging us with questions if you need to.

backontheup

Hello Dreamon

First of all, I will reinterate what others have said in this thread. BR would be by far the best thing to happen to you at the moment.

I had my own stresses with IR, but elected to jump because I was so sick of the whole affair. They are saving you £500 in fees.

No one will come to your house. You have no assets, are not working and there is nothing to be gained.

Get yourself off the joint account now. It sounds like your OH will not be dragged into it anyway.

Trust me. Life is about to start again. Sit back and let them bring it on. Once it has happened, all this stress and worry will be gone and you will have your life back

Stop panicking and upsetting yourself. This nightmare is about to come to an end

xx

fiveyearplan

I'm so sorry to hear what you are going through but as others have said you will get through this. Just be sure you are ready - have husband open account on his own so you don't lose anything. Just think all that debt and worry will be wiped away. If your credit rating is already bad then this won't make it much worse.

Good luck and keep posting. Hopefully Rog2 will share his experience with you.