Fighting Bankruptcy on the day of the hearing
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Many thanks for all your help and people who responded. All my tax returns up to date.
Tomorrow am calling nat debt helpline for business again and getting in touch with a insolvency practitioner in my town and will pay for a meeting with them.
I think I have managed to get a repayment plan that I intend to offer this coming week which would not be 12 months but over 17 months with an upfront payment, which as far as I know right now would be rejected based on HMRC wanting repayment plans in under 12 months but nothing lost in trying I suppose.
Thankfully my tax return ... and personal budget will allow for the proposal I sent them. Whats ironic is business is increasing the past 8 months ... but I have been too slow to react and now pay the price.
If I am made bankrupt its game over as I would loose ability to process through Paypal in effect cutting off my income source. And its hard to get an answer on the Paypal issue as so many differing reports ... some saying they were allowed to keep the business account some not.
I am though going to fight this right up until the actual day of the court hearing ... and what will be will be.
I wish this on no one and have only myself to blame. thanks again Dave.0 -
Good luck with it all.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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Thank you again each of you who took the time to respond it is very much appreciated. Im so drained from all this ... hardly slept all weekend. Im going to give it my all this week, do all I can to try halt this but at the same time now preparing for the worst.
One more question *sorry ...
If Bankrupt I know I will have an interview with the OR who will look at my whole situation and decide how much I will pay each month and other things they will do to restrict me.But How do they ascertain the debts I have and what will go into the Bankruptcy ? as I dont know where I am with them and they are quite a few some going back more than a few years. Do they get this info from my credit file or do I need to remember them all and supply them myself ? Or is there some kind of register they can check to see my creditors ?
thank you Dave0 -
Usually all of your debts go into your bankruptcy, but it's not a problem if you forget debt(s) because if you do all you do all you have to is quote your bankruptcy reference number and your creditor will contact the Official Receiver and the debt will be added to your other debts.Thank you again each of you who took the time to respond it is very much appreciated. Im so drained from all this ... hardly slept all weekend. Im going to give it my all this week, do all I can to try halt this but at the same time now preparing for the worst.
One more question *sorry ...
If Bankrupt I know I will have an interview with the OR who will look at my whole situation and decide how much I will pay each month and other things they will do to restrict me.But How do they ascertain the debts I have and what will go into the Bankruptcy ? as I dont know where I am with them and they are quite a few some going back more than a few years. Do they get this info from my credit file or do I need to remember them all and supply them myself ? Or is there some kind of register they can check to see my creditors ?
thank you Dave0 -
Just an update took more advise today and Spoke directly again to HMRC Recovery dept.
They have said an offer of an upfront payment of 20% of the debt with the remainder split over 12 months would stop further action. I have to include a budget and show that the repayment is feesable . it is just so long as I go and live with my father so im not paying rent / other bills but it would be still really tight.
Im working on my figures now to submit a proposal to them this week. A few points to note for any one else facing forced bankruptcy by the HMRC
Any offer that is sent in writing (email is acceptable ) will halt further action until they have responded / and an agreement is or is not made. If an agreement is not made then they proceed with the petition for bankruptcy. The person at HMRC said I would be informed in writing if they were to going to proceed with the petition for bankruptcy and I would have a further 18 days to respond / pay before they then request a date from the courts.
Action can be stopped at any time if an acceptable payment arrangement could be made or balance cleared in full. Which for people who like me are self employed and earn on a daily basis could make a difference. This is as much about gaining time as any thing else.
So now I have to decide do I pursue this to try avert BK or do I fold and take the hit.
The person at HMRC said the worst thing you do is ignore the situation, and he said even the proposal would pause everything and it is noted I am keeping in communication.
So now its all about my financial situation can i do this or not ... and do I want to ?
Thanks Dave0 -
Just an update took more advise today and Spoke directly again to HMRC Recovery dept.
They have said an offer of an upfront payment of 20% of the debt with the remainder split over 12 months would stop further action. I have to include a budget and show that the repayment is feesable . it is just so long as I go and live with my father so im not paying rent / other bills but it would be still really tight.
Im working on my figures now to submit a proposal to them this week. A few points to note for any one else facing forced bankruptcy by the HMRC
Any offer that is sent in writing (email is acceptable ) will halt further action until they have responded / and an agreement is or is not made. If an agreement is not made then they proceed with the petition for bankruptcy. The person at HMRC said I would be informed in writing if they were to going to proceed with the petition for bankruptcy and I would have a further 18 days to respond / pay before they then request a date from the courts.
Action can be stopped at any time if an acceptable payment arrangement could be made or balance cleared in full. Which for people who like me are self employed and earn on a daily basis could make a difference. This is as much about gaining time as any thing else.
So now I have to decide do I pursue this to try avert BK or do I fold and take the hit.
The person at HMRC said the worst thing you do is ignore the situation, and he said even the proposal would pause everything and it is noted I am keeping in communication.
So now its all about my financial situation can i do this or not ... and do I want to ?
Thanks Dave
I am glad that you have followed the advice given by me (and others) in this thread.
The only person who can make a decision about the future is you and no-one else.
All the best for the future !0 -
I am glad that you have followed the advice given by me (and others) in this thread.
The only person who can make a decision about the future is you and no-one else.
All the best for the future !
Thank you and to everyone else who has advised / responded. I will if people want keep updated on the progress as it might help others who face a similar situation - no matter what my outcome is.
Dave.0 -
Hi I submitted my Time to Pay offer to HMRC today. Called them and they have received the offer. So now I have to wait. Im nervous as I have no idea they will accept what I offered, even though 2 people I spoke to at HMRC indicated that they would. Its now a waiting game they said 1 to 2 weeks. But while negotiations are ongoing they have confirmed no further action at this time.
I really hope though they go for the deal I have offered.
Thanks Dave0 -
Well well, great news ! After submitting my offer of repayment over 12 months got a call today, they went through a few things and finally accepted my offer with an upfront down payment which was quite sizable.
Have to say they were good on the phone, kept with it and explained everything to me. Basically the order of Bankruptcy has been lifted for the next 12 months so long as I keep up with my repayment schedule. Which I for sure will do!
A few lessons learned in this for me, communication and not hiding away!
Paying your taxes in time and on time ... and if you cant for what ever reason speak to them!
And Time To Pay deals if you are honest and straight up about your situation can be given up to a max of 12 months.
Thanks very much for all the advise posted here It really was appreciated. Now all I need to do is cancel my social life for the next 12 months, put my head down., work my business and finally 12 months from be clear of the debt I owe!
Dave0 -
Well well, great news ! After submitting my offer of repayment over 12 months got a call today, they went through a few things and finally accepted my offer with an upfront down payment which was quite sizable.
Have to say they were good on the phone, kept with it and explained everything to me. Basically the order of Bankruptcy has been lifted for the next 12 months so long as I keep up with my repayment schedule. Which I for sure will do!
A few lessons learned in this for me, communication and not hiding away!
Paying your taxes in time and on time ... and if you cant for what ever reason speak to them!
And Time To Pay deals if you are honest and straight up about your situation can be given up to a max of 12 months.
Thanks very much for all the advise posted here It really was appreciated. Now all I need to do is cancel my social life for the next 12 months, put my head down., work my business and finally 12 months from be clear of the debt I owe!
Dave
Glad to hear that this has all been resolved for you satisfactorily.
Just remember to set up your direct debit to pay your monthly instalments and quote the right reference number so your payments dont get lost in HMRC`s bank accounts (it does happen !).
And your right, engage with HMRC , give them the information they want and as you found out you get the right result.
You hit the nail on the head earlier when you said what would HMRC get if they did make you bankrupt - virtually nothing.
HMRC *normally* only pursue the bankruptcy option for non compliant and non cooperative debtors.
Just think 12 months of financial hardship and you can put this behind you and still be able to get credit (if you want).
Well done you ! :beer::beer::beer::beer:0
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