Bankruptcy Advice and Guide (including forms)

Waspeze

I think you're referring to the nil tax code you can issued with, which means you pay no tax. This is not spare money for you to spend as it goes to the OR to distribute amongst your creditors.

I think that's how it works .. i didn't get one, hopefully someone who did can explain it better?

babyk

hi thanks for the reply, i guess every one else is just as unsure!!!

no i didnt get it either, but i found out yesterday, i rang the HMRC and they said to send in the bankruptcy order with a covering note to them with contact details and some one will contact me in 4 weeks.

I have tried to find some legislation but havent seen any, i think its a hidden one, i know some one in payroll, and they have been working in payroll for 20 years and only found out about this last year!

So its worth ringing the HMRC and finding out what they say!!

fermi

Certainly well known around here.

”NT” tax code Income Payments Agreements and Income Payment Orders

When a bankruptcy order is made against an individual who is subject to PAYE, HM Revenue and Customs (HMRC) applies a “nil tax” code to that person for the remainder of the tax year in which they were declared bankrupt and can then claim in the bankruptcy for the amount of tax which would have been collected (plus any other money owed for previous years), as long as the debtor does not change his/her source of income (i.e. gets a new job) during the tax year in which the bankruptcy order was made.

Where the new tax code is expected to be applied before the end of the tax year an IPA/IPO should be obtained. Where the bankrupt has signed the Tax and NI Disclosure Authority, an Income Payments Agreement (IPA) should be sought in preference to an Income Payments Order (IPO), to claim the extra money that the debtor receives.

An IPA/IPO can be made purely on NT tax code grounds and is not dependent on whether the debtor has any disposable income to make regular payments.

North_East_Derbyshire_CAB

Hi all,

Since our original post on this thread, we have seen a huge increase in bankruptcy enquiries and speaking to others in the advice sector it looks like the rise is across the board.

We have seen many more enquiries on this site with regards to assistance with completing bankruptcy forms and again, due to volume of work we have not been able to really answer any of these posts.

However since our original post and as a result of positive feedback from both on here and at the bureau, we have updated and we believe improved the bankruptcy section of our website which includes example forms 6.27 and 6.28.

Taking the above into account, this section (http://www.ned-cab.org.uk/debtselfhelp/bankruptcy.shtml) may be of assistance to those who may be having difficulty in completing bankruptcy petitions and could save you a considerable amount of money.

We would strongly advise anyone considering bankruptcy to make sure they get proper / professional advice (preferably from one of the free agencies mentioned below) on this along with all other options. We say this as we know of people who have gone to court and have been refused bankruptcy due to not receiving proper advice and/or that the forms have not been completed fully and properly.

Hope this helps.

fermi

That's great.

Every time I've tried to do something on the forms myself, I've got sidetracked by one thing or another and it hasn't quite happened.

North_East_Derbyshire_CAB

Hi Fermi,

Thats ok, time seems to go by so fast, just let us know of any developments if you wish, we will help if we can.

NED-CAB

Rylynn

This sounds like a great idea. I run websites not this type, and we have locked threads that are for information only. I can see though while this is work in progress it may be wise to have an open thread where people can comment on things they have experienced that could be added to the FAQ and the form filling in. Once added they posts could be removed and the thread then locked and made sticky.

Very nice to see NED CAB here, all the advice here and comments are invaluable to people like me, and I would like to thank all of the members and people like Fermi and the other person who are prepared to spend time doing this. I hope once I am thru this nightmare I will be able to help here with some things, as this is one of the most giving sites I have ever come across.

Rylynn