HMRC Debt Bankrupcy Help & Advice

maxmycardagain

The OP says he owes "tax/VAT" (i.e. he was either a sole trader or ltd company), in my experience the taxman and the vatman are like chalk and cheese, its the VAT/Customs and Excise who will put your head on a pole for £10 owed..

maxmycardagain

mortgage of £120k outstanding with a market value of roughly £220k.

£100k equity ON A GOOD DAY less costs

85% of the mortgage was put up by me & my wife & 15% by the Developers.

How did the developers secure their investment?

So effectively I own 42.5%, the wife 42.5% & the developers 15%

Your share is about £40k - on that good day minus costs and minus HMRC paying £700 to make you BR

P.S. Has your accountant checked your tax and VAT position? any VAT off invoices not yet paid or unpaid may not be due?

TheGardener

CEX wrote: »

Thank you for your reply. what is a SoA please?
So, if i'am being made bankrupt, but my wife who has a joint mortgage on the house wants to maybe get the beneficial intrest buy out, i should still carry on paying the mortgage?

An SoA is a statement of accounts. Its the 'snapshot' the OR has of your income that they determine whether you have any 'surplus' income (over and above what you need for a reasonable standard of living) There is a good one here that you can format to post on this forum page here

silvercar

CEX wrote: »

Thank you for your reply. what is a SoA please?
So, if i'am being made bankrupt, but my wife who has a joint mortgage on the house wants to maybe get the beneficial intrest buy out, i should still carry on paying the mortgage?

Missed this bit.

If it is a joint mortgage, then any arrears will effect your wife as much as you. her credit rating is going to be slashed by having a financial link with you. Not much you can do about that if you have a joint mortgage, but sever all other financial ties so that if you do lose the house she can then have completely separate finances.

As for the house, if it is sold, your wife would be given her share of the equity. Make sure sale costs come off your share. If you have a repayment mortgage then the amount of equity in the property will increase as your monthly repayments reduce the size of the mortgage.

maxmycardagain

Or.... jump before pushed...

sell the house ASAP, for the best possible price and then go BR?

that would separate the joint debt, pay off the builder and leave the OP with a pot and the wife gets her £40k. He could then also pay off any other joint debts/cards too leaving only his own "solo" debts?

Flyright

Please do not follow this course of action as the OR will have numerous preferential payments to be able to overturn and which could land the OP with a hefty BRO.

silvercar

maxmycardagain wrote: »

Or.... jump before pushed...

sell the house ASAP, for the best possible price and then go BR?

that would separate the joint debt, pay off the builder and leave the OP with a pot and the wife gets her £40k. He could then also pay off any other joint debts/cards too leaving only his own "solo" debts?

Flyright wrote: »

Please do not follow this course of action as the OR will have numerous preferential payments to be able to overturn and which could land the OP with a hefty BRO.

Point accepted, but another option would be to sell up, split the equity so wife's is banked, separate all finances, then go bankrupt. That would leave the bankrupt's share in an account that you can hand over to the OR to distribute as they see fit.

CEX

What does BRO mean please?
Thanks

silvercar

CEX wrote: »

What does BRO mean please?
Thanks

Bankruptcy Restriction Order. See here.

If the official receiver finds out you’ve behaved dishonestly or recklessly, a bankruptcy restrictions order (BRO) may be made against you. This would extend the period of restrictions for anything up to 15 years.

TheGardener

CEX wrote: »

Thank you for your reply. what is a SoA please?
So, if i'am being made bankrupt, but my wife who has a joint mortgage on the house wants to maybe get the beneficial intrest buy out, i should still carry on paying the mortgage?

An SoA is a statement of accounts - its a detailed statement of what income, assets and outgoings you have.

If you post one on here, we can help make sure you include all your reasonable expenditure.

The beneficial interest is a negotiation with the OR
Yes - if you intend to try and keep the house, keep paying the mortgage. Stop paying all credit debts now if BR is most likely to happen. When your creditors call you - just tell them you are talking to debt charity and you'll get back to them when you have a solution.
There are different views on paying mortgages depending whether it is a repayment or interest only .