HMRC WARNING OF BANKRUPTCY

strugglingmum70

In November I received a letter warning of bankruptcy from HMRC.
I owe then approx £193k in taxes, vat, fines etc.
I was a soletrader for 10 years.
For the last 2 years since I stopped being self employed I've paid them £500 a month.
They have told me to stop paying, it's barely covering the fees & interest they said.
I turned to stepchange for advice,  they said HMRC wouldn't accept an IVA so bankruptcy is my only option.

My concerns, I jointly own our home with my partner, we've 4 sons. I have a charging order over the property by a business finance lender, when I was borrowing to try & get out of the mess.

My question.
Will they force us to sell.
I will have no equity on my share due to the charge. Will my partners share be protected?

Is there any other solution at this stage I can explore, I'm assuming not having spoken with stepchange.


Thanks in advance 

Grumpy_chap

strugglingmum70 said:

In November I received a letter warning of bankruptcy from HMRC.
I owe then approx £193k in taxes, vat, fines etc.
I was a soletrader for 10 years.
For the last 2 years since I stopped being self employed I've paid them £500 a month.
They have told me to stop paying, it's barely covering the fees & interest they said.
I turned to stepchange for advice,  they said HMRC wouldn't accept an IVA so bankruptcy is my only option.

My concerns, I jointly own our home with my partner, we've 4 sons. I have a charging order over the property by a business finance lender, when I was borrowing to try & get out of the mess.

My question.
Will they force us to sell.
I will have no equity on my share due to the charge. Will my partners share be protected?

Is there any other solution at this stage I can explore, I'm assuming not having spoken with stepchange.


Thanks in advance 

I can't advise about the HMRC procedures and whether your home is at risk.

Stepchange will be a good source of advice.

You may also wish to visit the DfW (Debt-free Wanabee) area of this forum, prepare you SoA (Statement of Affairs) (the lemonfool template seems to be commonly recommended).  If you share your SoA in the DfW area, people will provide constructive advice as to how the future budget might become manageable.

ManyWays

Business Debtline are a better source of advice about this than StepChange: https://businessdebtline.org/

strugglingmum70

Thank you both.
I will contact business debt line tomorrow thank you

Minkym00

Your partner’s share cannot be used to pay your debts. However the trustee has 3 years to deal with a family home so, if it’s likely that it will increase substantially in value in that time, they may look at doing something if you end up with some equity. 

The chances are though that they will revert the property back to you. 

strugglingmum70

Thank you Minky