A good starting point for bankruptcy questions
By Julia Lowe
#14098 Having been in contact with HMRC to try and negotiate I have received papers from the court in regard of an outstanding amount from HMRC (a debt related to a failed IVA in 2006 ish) – there is still a larger amount outstanding in tax liability since then. I completed the forms from the court and returned them and have had a letter today from HMRC to say that the offer of £10 a month is not acceptable and a CCJ will go ahead followed by either payment in full (impossible unless I have a lottery win) and then potentially bankruptcy, a charge on my property (I don’t own one), removal of my goods (I don’t own anything apart from just normal furniture and a small, oldishcar). Apparently the court will set an amount to pay and I’m not sure why that is happening as I don’t have money. I’ve been trying to get £60 a week job seekers allowance since August and that still isn’t sorted and apart from a few hundred pounds here and there for teaching my income has been via my father and my sister.

I think bankruptcy is my only option but with it costing £500-600, it isn’t something I can initiate straight away. I am battling with the stress and depression of all the stuff going on financially and the associated problems it’s causing and I have to resolve it and I was wondering if it is possible just to ask HMRC to make me bankrupt and stop dragging it all out any longer? I appreciate your advice.
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By Hayden
#14157 Hi Julia and welcome to the forum.

Sorry to hear about your situation. You do seem to have had a tough time of it with HMRC. Form what you have said bankruptcy does seem the correct solution for you. From what i understand, HMRC will be prepared to make people bankrupt for unpaid tax debts so it might be worth your while holding out for that. You could always suggest to them that they do it and see what they say. In the mean time why not start saving for the bankrutpcy fee so you can go ahead if HMRC do not act. If you are on a low income or benefits, the cost wil be £525.
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By Steve Jackson
#14182 Hi Julia

HMRC might act to make you bankrupt but there is no guarantee of this. Asking them to do so would be an unusual step and to be honest I am not sure if it would do any good. As such, I agree that your best course of action is to start saving to pay for the process yourself so you can go that route if HMRC do not petition for your bankruptcy in the mean time.
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By Geraldine
#14235 Hello Julia

Sorry to hear about your situation, stuggling with debt is never easy and it sounds as though you have been struggling for a long time. I agree with the other posters. There is no guarantee that HMRC will go through with their threat of making you bankrupt so the best thing to do is plan to do it yourself and start saving. In the mean time if HMRC do act it will be a bonus for you. Good luck and please do not hestiate to ask if you have more questions.