Fighting Bankruptcy on the day of the hearing
dave1968
Posts: 56 Forumite
Hi im worried sick over a statutory demand I have from HMRC , please dont judge me why i got into this position if you can. I have a debt which goes all the way back to 2010/2011 around that time, I lost my home (reposession ) my marriage and my business. Was on various medication for mental health issues due to this. over the years since then I started to improve and rebuild my business but had no real clue about filing my tax returns. Its the only the last 8 months or so I have really started to get to grips with this.
All offers of repayment were rejected, as they say 12 months or less any payment plan which is impossible for me.
So I have just written a final offer to HMRC of offereing a £5000 down payment with a further 24 months of payments
Which would clear the debt in full in 24 months
I know the above has little or no chance of being accepted by HMRC , but I had to try, because if i am made bankrupt after the statutory demand time is up, I would loose my ability to process customers payments through my paypal business account (as im almost sure paypal would close me down ) in effect killing off my business as I can only use paypal. I would then at somepoint be homeless as i would not be able to keep up with rent payments forced onto benefits. IM not looking for pity just saying it as it is.
But in the event HMRC reject my repayment offer , (it makes sense for them to accept as if bankrupt they would get virtually nothing as I have no assets such as house car or savings )
But that they do reject do I get an opportunity to present the above to a judge at the bankruptcy hearing ? or is it just a given that the petition will be stamped and approved without giving me the chance to speak ? I cant afford a solictor to represent me as the money I will collect is for the proposal to HMRC
Thank you for reading and imput would be greatly appreciated.
Dave
All offers of repayment were rejected, as they say 12 months or less any payment plan which is impossible for me.
So I have just written a final offer to HMRC of offereing a £5000 down payment with a further 24 months of payments
Which would clear the debt in full in 24 months
I know the above has little or no chance of being accepted by HMRC , but I had to try, because if i am made bankrupt after the statutory demand time is up, I would loose my ability to process customers payments through my paypal business account (as im almost sure paypal would close me down ) in effect killing off my business as I can only use paypal. I would then at somepoint be homeless as i would not be able to keep up with rent payments forced onto benefits. IM not looking for pity just saying it as it is.
But in the event HMRC reject my repayment offer , (it makes sense for them to accept as if bankrupt they would get virtually nothing as I have no assets such as house car or savings )
But that they do reject do I get an opportunity to present the above to a judge at the bankruptcy hearing ? or is it just a given that the petition will be stamped and approved without giving me the chance to speak ? I cant afford a solictor to represent me as the money I will collect is for the proposal to HMRC
Thank you for reading and imput would be greatly appreciated.
Dave
0
Comments
-
Too add they are also some question marks on the 2 of the earlier years tax returns where they have done a determination, but i know one of those years 2013 was a loss for me as i had a business (pub) that i actually lost money on with my brother. But have not brought this to light yet. is there something in that which can at least buy me some time ?
clutching at straws I know
feel sick with worry have not slept all night.
Dave.0 -
You need to get all outstanding returns in to HMRC if possible. This will at least establish the actual debt you owe, but be aware that failure to pay tax owed is grounds for the OR to seek a BRO.0
-
Hi yes I know its the cause for seeking the BRO but what I am asking is on the day of the BRO hearing in court would I get a chance to speak or not ? I have submitted my repayment proposal to HMRC . Returns are now up to date. thank you0
-
I don't mean a bankruptcy order, I am referring to a Bankruptcy Restrictions Order which the OR may seek against you.0
-
Hi yes I know its the cause for seeking the BRO but what I am asking is on the day of the BRO hearing in court would I get a chance to speak or not ? I have submitted my repayment proposal to HMRC . Returns are now up to date. thank you
You will, but it is unlikely the court will take what you say into consideration, it appears HMRC are a law unto themselves as they are a Government body, the court is unable to refuse or refute what they tell it.
Any payment arrangement must consist of a lump sum, followed by the balance, in a matter of months.
Some info here :
http://taxaid.org.uk/guides/taxpayers/tax-debt/bankruptcyI’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 -
Right I understand. But my question is do I get a chance before the bankruptucy is passed to have any say in the court on the day or not. What happens after that point if I do get made bankrupt is kind of irrelevant and I will be totally destitute especially if they close down my Bushiness paypal account - it would be game over.
What im trying to ascertain is there anyway I get the option to speak to the judge / magistrate at the hearing or not if HMRC reject my final proposals for repayment of the debt
thanks0 -
OK thanks for the info and link. Only lump sum I could come up with was £5k so probably not enough.
It just seems insane because when/ if I do go Bankrupt they would only get a fraction of that. Seems like im screwed ...0 -
sourcrates wrote: »You will, but it is unlikely the court will take what you say into consideration, it appears HMRC are a law unto themselves as they are a Government body, the court is unable to refuse or refute what they tell it.
Any payment arrangement must consist of a lump sum, followed by the balance, in a matter of months.
Some info here :
http://taxaid.org.uk/guides/taxpayers/tax-debt/bankruptcyRight I understand. But my question is do I get a chance before the bankruptucy is passed to have any say in the court on the day or not. What happens after that point if I do get made bankrupt is kind of irrelevant and I will be totally destitute especially if they close down my Bushiness paypal account - it would be game over.
What im trying to ascertain is there anyway I get the option to speak to the judge / magistrate at the hearing or not if HMRC reject my final proposals for repayment of the debt
thanks
As i said above, yes you will, you have a basic right to a defense, but its unlikely the court will be able to rule against HMRC.
It seems they tend to pursue these cases even if it means it costs the Government more once the debtor loses their home/job etc.
Unfortunately HMRC have wide ranging powers, which they use regardless of consequences.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 -
Please see my comments in REDHi im worried sick over a statutory demand I have from HMRC , please dont judge me why i got into this position if you can. I have a debt of £37,400 which goes all the way back to 2010/2011 around that time, I lost my home (reposession ) my marriage and my business. Was on various medication for mental health issues due to this. over the years since then I started to improve and rebuild my business but had no real clue about filing my tax returns. Its the only the last 8 months or so I have really started to get to grips with this.
All offers of repayment were rejected, as they say 12 months or less any payment plan which is impossible for me.
Did you provide income & expenditure details when you made this offer ?
So I have just written a final offer to HMRC of offereing a £5000 down payment, along with 12 payments of £800 per month then a further 12 monthly payments of £1900.75
Which would clear the debt in full in 24 months.
As you have said, the arrangement was rejected as the proposed timescale is to long.
and in the above have also said I will make one extra payment per month to cover incurred interest thats a variable figure as my interest would start to drop with each payment so cant give exact figure on that, at the moment it is around £2.80 per day.
I know the above has little or no chance of being accepted by HMRC , but I had to try, because if i am made bankrupt after the statutory demand time is up, I would loose my ability to process customers payments through my paypal business account (as im almost sure paypal would close me down ) in effect killing off my business as I can only use paypal. I would then at somepoint be homeless as i would not be able to keep up with rent payments forced onto benefits. IM not looking for pity just saying it as it is.
But in the event HMRC reject my repayment offer , (it makes sense for them to accept as if bankrupt they would get virtually nothing as I have no assets such as house car or savings )
HMRC would argue that they have a duty to protect the public purse and thats why they want to make you bankrupt.
But that they do reject do I get an opportunity to present the above to a judge at the bankruptcy hearing ? or is it just a given that the petition will be stamped and approved without giving me the chance to speak ? I cant afford a solictor to represent me as the money I will collect is for the proposal to HMRC
The process is that you have 21 days to pay the amount demanded in the Statutory Demand and if you dont , HMRC apply to the High Court in London for a Bankruptcy Petition against you - until that Petition is served upon you are NOT bankrupt.
I don`t think you can appear at the Petition Hearing.
Thank you for reading and imput would be greatly appreciated.
Dave0 -
Did you provide income & expenditure details when you made this offer ?
Not in writing no but will be submitting one when I send my latest proposal / offer in this coming week.
I don`t think you can appear at the Petition Hearing.
Right so I would not be able to have one last attempt to stop this, I thought I would be allowed to attend my own Bankruptcy hearing, but thanks for clarifying that.
So it seems HMRC will reject my final offer when they get it next week, but i loose nothing sending it in. They did give me 1 extra week to get the repayment proposal in.
I just know I would not be able to split it into 12 or less payments ...
so im dreading the next few weeks as my life closes down around me. My own fault. I know ...
I feel psychically sick with all of this ... i know its gonna end really bad ..
thank you for your responses Dave
0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards