HMRC bankrupt or do we do it ?

I think rog2 can give you some advice on this - he was made BR by HMRC, so he can give you an idea of their procedures & the possible effects from allowing them to make you BR. If he's not online now, he'll probably be around later, or you could send him a PM.

wherediditallgo wrote: »

I think rog2 can give you some advice on this - he was made BR by HMRC, so he can give you an idea of their procedures & the possible effects from allowing them to make you BR. If he's not online now, he'll probably be around later, or you could send him a PM.

Hi taib0 - I only looked in to check my CP - I was, indeed, one of HMRC's(bless 'em) statistics. I'll give you the details in the morning as I'm just off to bed. Cheers.

I'm also interested in knowing the difference of ging bankrupt yourself or being made bankrupt by someone else? Is there really any difference (apart from saving the fee).

Rog2 we're eagerly awaiting your response!

Hi taib0 and fiveyearplan - I'm really sorry that I have not posted earlier - I have been out all day (unexpected problem).
Firstly taib0 - Yes I was declared bankrupt by HMRC, in curcumstances probably not dissimilar to your own I was struggling, for three years to try and keep a sinking business afloat, and should have listened to advice but, as many will appreciate, was still hoping for 'that elusive big sale'.
HMRC are one of the most unforgiving of creditors and, between the Inland Revenue and VAT sides of their business, they are responsible for by far the largest percentage of creditor petitioned bankruptcies in the UK.
I did, like you, try and negotiate with HMRC but they were not prepared to discuss, other than suggesting that I paid the amount of their assessment, and claimed it back later. As this was not an option HMRC obtained a CCJ against me, which was followed up, one month later by the personal service of a Statutory Demand leading to my bankruptcy last October.

Whilst, yes it is true that you do not pay the up-front fees when a creditor petitions for your bankruptcy, the fees ARE added to your bankruptcy estate and are inevitably much higher than for a debtor petition. In my case the fees were over £1800. Fine, perhaps, if you have no assetts.

Another downside to an HMRC petition is that they ONLY use the High Court in London, which if, like me, you don't live in London is a real pain.

Whilst the actual Court Hearing was quite painless - I was in the High Court for a TOTAL time of one hour, five minutes of which were spent in front of the judge, I did have to attend a three hour long OR meeting. Whilst the OR was extremely polite and non-judgemental, her examination of me, and my business, was extremely thorough. A trustee was appointed, by HMRC as they were my largest creditor, and I am currently trying to save my house.

With the benefit of hindsight, I would have petitioned for bankruptcy as soon as I received the CCJ.

I, and others who have been declared bankrupt by a creditor (in particular HMRC) do feel that you have more control of the situation.

This would appear to be confirmed by Addicted2Chocolate, who works for the Insolvency Service, in the previous post.

If, as you say, HMRC is telling you that they are not interested in a DMP (they told me the same), they WILL go ahead and petition for your bankruptcy.

I have to admit to a certain bias in my advice as I feel that the treatment that I received from HMRC was abysmal. I was, like you, met with a total lack of understanding or sympathy. I was, repeatedly, given contradictory advice and I found the general attitude of the 'officers' dealing with me to be one of 'arrogant superiority'. I appreciate that that may be an unfair assessment of everyone who works for HMRC, but certainly those that I hadd to deal with would win no points for diplomacy and I hope that one day they find themselves in a position where they need to ask for help.

My advice, if you can afford it, is to pay the court costs and petition for your own bankruptcy.