Bankrupsy Countdown (Scotland)

Seconds_to_Disaster

Hi,
I have a good credit history. I've always repaid my debts. I've always been proud to do so. I currently have only one loan which has about 18 months left to run and I'm debt free for probably the first time in donkeys years having clawed my way out of credit card debt. I was looking forward to it.
Then I get a letter from HMRC. Want to have a word with me about my income from my catering business. I've pushed it a bit over the last few years. I've been over the vat threshold. I've wanted to deal with it but everytime I mention it to anyone else I know who is VAT registered they advise I put it off longer. They advise I try to avoid it. So I put it off for another year and then I go through to same process again.
I've paid plenty tax, very nearly the right amount but I've kept my turnover artificially low in order to avoid the VAT. I've also turned down business to stay clear of it. Knowing that a 20% increase in prices or a 20% reduction to my turnover will mske customers go elsewhere or annihilate what profit there is.
So go ahead and judge. I'll read your comments but won't get involved in the stramash.
Short story is HMRC want £50k that I dont have. I have no doubt by the time my accountant is done this figure will be less but I simply don't have it. It's not like I've charged my price plus VAT and just kept the lot.
So I've been advised by both HMRC and my accountant to contact an insolvency practitioner. My accountant recommended one so I've contacted them but the person I need to speak to is on holiday so I need to wait a couple of weeks to have that conversation.

Is there much of a difference from on insolvency practitioner to another? Where do you even start to 'pick' one? Does it make difference which one you pick? How long does the process take?

I'm also worried about my business. I assume I get to keep it and continue running it? I'm a sole trader. Theres not much in the way of assets. It's not really worth anything without me and it's my only form of income.

Our house is solely in my wife's name having bought it before we even met. I am working on the basis that the house is safe?

I cant bring myself to tell friends and family. I guess I'm waiting for a right time they will never arise. My wife is keen to start telling close friends as our future plans will be changing. We were going to move into a house jointly mortgsged but I cant see that happening for a long time now.

This is my story. Sorry for all the questions.

mwarby

Is the business a distinct legal entity (eg limited company) or are you a sole trader. If it's a limited company you may not need to go bankrupt personally (but opens up questions about do you try and save business via administration, or liquidate)

Seconds_to_Disaster

I'm a sole trader with one or two employees depending on how things are.

mwarby

Ok so we're talking personal not corporate insolvency

Regarding the house there might be an argument that you have built up beneficial interest in the property. If you could claim it in a divorce, the OR will likely try same argument