A good starting point for bankruptcy questions
By Goingbankrupt
#33364 hi,
After trying for the last year to sort my debt out I have come to the conclusion I have no other way than to go bankrupt.

Reason for debt: gambling addiction ( in therapy to recover)

I have not paid tax to Hmrc for over 2 years & have managed to go under the radar!! This is all because of my gambling addiction I have around 50k worth of debt from taking clients money and not supplying goods, also charging vat and not paying that! I am deeply ashamed of what I have done.

Hmrc do not know where my business is as moved but I understand they can make you bankrupt but after 2 years I have checked and they havnt.

I have been offered a job abroad and have accepted this. My plan is to get set up then go bankrupt.. I have the following questions to ask if anybody can assist.

1) if I go bankrupt when abroad how will they find out where I’m working?

2) if my job doesn’t go well and I loose it I understand I won’t have to pay ipa - what happens if I get another job do they do checks on me?

3) due to having tax/vat debt worth 50k but no credit cards due to debt will I get an bro/bru? My gambellng spend was around 8k a month.

I’m trying to sort my life out and any advice would be great.

Many thanks
User avatar
By Geraldine
#33365 Hi Goingbankrupt. Welcome to the forum :)

Given you are not a home owner then bankruptcy does sound like a sensible way for you to draw a line under your debt problem and move on.

Note: If you are planning to move abroad it is very important to consider where you are moving to. If you are moving to another EU country you MUST go bankrupt before you leave the UK. You lose the option as soon as you leave. If you are moving outside the EU you then have up to 3 years to apply.

Here are the answers to your questions:

1) if I go bankrupt when abroad how will they find out where I’m working?
A - When you apply for bankruptcy you have confirm whether you are working or not. If you are not that is fine you simply state you are unemployed. You remain bankrupt for 12 months. You are legally obliged to inform the Official Receiver (OR) if your income increases during that time. However if you do not tell them it is possible they will not find out.

2) if my job doesn’t go well and I loose it I understand I won’t have to pay ipa - what happens if I get another job do they do checks on me?
A - If you have already started paying an IPA and you lose your job the payments stop. However because the IPA has already started it still stays in place for the full 36 months. If you get another job during this time you are abliged to inform the OR. They will then review your income and expenses. If you than have a surplus your payments will start again based on that amount for the remainder of the 36 months.

3) due to having tax/vat debt worth 50k but no credit cards due to debt will I get an bro/bru? My gambellng spend was around 8k a month.
A - Yes. Because a significant part of your debt is due to gambling and non payment of HMRC you may well be asked to accept a BRU. However given you do not want to be a director of a limited company and you will no longer be living in the UK this is uklikely to have any real impact on you.

If you have further questions please do notbhesitate to ask :)