HRMC bankruptcy

Tangled_1

Hi, I’m new to the forum and like many out there just can’t sleep anymore due to worry.

My husband was served a petition to declare him bankrupt by HRMC the hearing is In 10days time. We’ve tried family and friends but cannot come up with the required sum in time but are confident that we could could if given more time.

The debt is £22k I understand it was originally £5k but he hid it from me (hidden for years I have now come to find out). There is equity in our joint property but I’m just trying to navigate this whole thing.

Can he get the matter adjourned? Is it likely to give us time to pull the funds together?

I’m really lost and trying to dig my family out of this hole... any advice out there? Thanks for listening

fatbelly

Yes a judge can adjourn a hearing. But you're a long way down the process here. There would need to be a definite plan and a reasonable timescale.

Did he make any response to the statutory demand?

Tangled_1

He asked for an adjournment. It looks like they will say yes. But apart from selling the roof over my head I don’t know what to do...

silvercar

Secured loan on your property?

Really all depends on whether there is sufficient equity in the property to cover the debt and whether his bankruptcy would effect you both greatly.

Two scenarios:
1. You both arrange a secure loan on the property that is enough to keep hmrc happy.
2. He goes bankrupt, then you need to find a way to buy back his share of the equity in the property, probably by way of a secured loan in your name.

Secured loan for you alone with him as a bankrupt would be harder than a joint secured loan on the property without the whiff of bankruptcy, but the numbers themselves may determine which is preferable. (Of course him going bankrupt also has financial implications to consider.)