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    • novak1984
    • By novak1984 15th May 18, 9:16 PM
    • 8Posts
    • 0Thanks
    novak1984
    Looks like bankruptcy for me.................
    • #1
    • 15th May 18, 9:16 PM
    Looks like bankruptcy for me................. 15th May 18 at 9:16 PM
    I've been trying to reach an agreement with the HMRC for paying off a large sum of money owed.

    The figure they want is approx double the amount of tax owed due to penalties and interest.

    Long story short. I have no assets. They want it paying within 12 months which i cannot afford. I have provided them a income/expenditure and an amount i can pay per month. However, it would take 7 years to pay it off at this amount.

    It appears they would rather make me bankrupt then getting money back. I want to pay the money back but can only afford the amount i have proposed, but they are going to send it to the solicitors office now and looks like they will probably make me bankrupt (i assume thats what happens). I still find it bizarre they would rather get zero then X amount of 7 years, but they tell me that's the way it is.

    So the employment i am in, i will lose my job and obviously puts me in a bad position to pay anything back.

    I am not sure what my next steps should be........any advice welcome.
Page 1
    • John-K
    • By John-K 15th May 18, 9:36 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    • #2
    • 15th May 18, 9:36 PM
    • #2
    • 15th May 18, 9:36 PM
    Can you borrow enough to pay it off?

    When you say that you have no assets, do you not have any electronics that you could put on eBay, old books or CDs that you can sell or similar?

    Can you get a second job, pub work at the weekends, for example?
    • novak1984
    • By novak1984 15th May 18, 9:46 PM
    • 8 Posts
    • 0 Thanks
    novak1984
    • #3
    • 15th May 18, 9:46 PM
    • #3
    • 15th May 18, 9:46 PM
    Can you borrow enough to pay it off?

    When you say that you have no assets, do you not have any electronics that you could put on eBay, old books or CDs that you can sell or similar?

    Can you get a second job, pub work at the weekends, for example?
    Originally posted by John-K
    Thanks for the reply. However i would need a lot of CDs.

    We are talking 220k (116k is actual tax). I've offered 1800 per month and they aren't interested.
    • sourcrates
    • By sourcrates 15th May 18, 11:07 PM
    • 14,602 Posts
    • 13,733 Thanks
    sourcrates
    • #4
    • 15th May 18, 11:07 PM
    • #4
    • 15th May 18, 11:07 PM
    Thanks for the reply. However i would need a lot of CDs.

    We are talking 220k (116k is actual tax). I've offered 1800 per month and they aren't interested.
    Originally posted by novak1984
    I would suggest you call National Debtline and get more specific advice on your personal situation.

    I donít think your offer is that bad to be honest, they may be able to get your voice heard.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #5
    • 16th May 18, 10:36 AM
    • #5
    • 16th May 18, 10:36 AM
    Hi Novak


    I've been trying to reach an agreement with the HMRC for paying off a large sum of money owed.

    It appears they would rather make me bankrupt then getting money back. I want to pay the money back but can only afford the amount i have proposed, but they are going to send it to the solicitors office now and looks like they will probably make me bankrupt (i assume thats what happens). I still find it bizarre they would rather get zero then X amount of 7 years, but they tell me that's the way it is.

    So the employment i am in, i will lose my job and obviously puts me in a bad position to pay anything back.
    Originally posted by novak1984

    No easy answers to this one. HMRC are quite a particular creditor in that they will often pursue bankruptcy as a matter of policy, regardless of whether this actually recoups any of their debt. Your payment proposal would no doubt be readily accepted by many creditors, but HMRC are a case apart in this respect.


    At this stage I can only recommend that you begin making the payments you've already offered and make them aware that you are doing so, as well as pointing out (if you haven't already) the adverse effect bankruptcy would have on your employment.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • maxmycardagain
    • By maxmycardagain 16th May 18, 6:26 PM
    • 4,578 Posts
    • 3,717 Thanks
    maxmycardagain
    • #6
    • 16th May 18, 6:26 PM
    • #6
    • 16th May 18, 6:26 PM
    HMRC are cold heartless soul less swines

    they kept after £10K they said i owed, BR stuffed em on that

    they send their own collector out, ours was slower from the front door to the gate than our dog...
    Dont worry, be happy
    • maxmycardagain
    • By maxmycardagain 16th May 18, 6:28 PM
    • 4,578 Posts
    • 3,717 Thanks
    maxmycardagain
    • #7
    • 16th May 18, 6:28 PM
    • #7
    • 16th May 18, 6:28 PM
    at least if they make you BR you save £700+ in fees
    Dont worry, be happy
    • roughsea
    • By roughsea 16th May 18, 7:13 PM
    • 74 Posts
    • 15 Thanks
    roughsea
    • #8
    • 16th May 18, 7:13 PM
    • #8
    • 16th May 18, 7:13 PM
    I was also part of a bankruptcy due to HMRC and after years of worrying, it was the best thing that happened.

    It's a very easy process and did not affect me in my daily life but instead took some time off from work and reduced my hours due to all the stress of HMRC.

    1 year soon passes and I am now discharged and it feels great

    I would advise paying for the bankruptcy as HMRC can drag it on and looking back would have been quicker to do it myself rather than wait nearly a year for HMRC to do it
    • John-K
    • By John-K 16th May 18, 8:13 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    • #9
    • 16th May 18, 8:13 PM
    • #9
    • 16th May 18, 8:13 PM
    It!!!8217;s hard to see how you can owe so much and yet not have kept on top of it but yes, they will likely make you bankrupt. If nothing else it serves as a warning to others who may consider delaying payment, or spending the money which was supposed to be paid in tax.

    There is really no advice to give here, if you cannot raise the money then they will likely make you bankrupt.

    What happened?
    • maxmycardagain
    • By maxmycardagain 17th May 18, 8:21 PM
    • 4,578 Posts
    • 3,717 Thanks
    maxmycardagain
    .

    There is really no advice to give here, if you cannot raise the money then they will likely make you bankrupt.

    What happened?
    Originally posted by John-K

    I doubt they will, they get nothing that way, they will keep pestering you though
    Dont worry, be happy
    • Gemsy81
    • By Gemsy81 17th May 18, 9:46 PM
    • 148 Posts
    • 432 Thanks
    Gemsy81
    I think with HMRC it really depends who you get dealing with it. Some of them are great, some of them not so much. From experience, I know their protocol is to have it paid back within a year - sometimes they will negotiate slightly longer, but not to 7 years I doubt. Its all about ticking boxes with HMRC, and they don't want an unticked box for 7 years.

    If it was me, I would apply for bankruptcy myself to keep some control over the situation. Its not the end of the world, and I can imagine the relief of having £200k + of debt off your shoulders would be more than worth the initial discomfort. Good luck.
    • John-K
    • By John-K 17th May 18, 10:03 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    I doubt they will, they get nothing that way, they will keep pestering you though
    Originally posted by maxmycardagain
    What do you base that on? They make people bankrupt all the time, and the threat of it obviously encourages others to make more effort to pay, especially those whose career would be wrecked via a bankruptcy.
    • maxmycardagain
    • By maxmycardagain 17th May 18, 10:18 PM
    • 4,578 Posts
    • 3,717 Thanks
    maxmycardagain
    What do you base that on? They make people bankrupt all the time, and the threat of it obviously encourages others to make more effort to pay, especially those whose career would be wrecked via a bankruptcy.
    Originally posted by John-K

    How many in deep debt would really be wrecked by a creditors BR petition? only a few like company directors (most of whom would dodge the bullet with fancy footwork), anyone covered by FCA rules or anyone with really good assets (who would have those protected already in most cases)

    The rich get richer....
    Last edited by sourcrates; 21-05-2018 at 1:42 PM.
    Dont worry, be happy
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