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This is where to post your first questions about any debt problems you have
By cpharo36
#34331
Good morning, I just have one more question before I submit my application. I was reading previous posts on here last night and someone mentioned that there tax code changed when their bankruptcy was submitted. Will my tax code Change and if it does ,does this mean my employer will find out I have gone bankrupt, I don’t want my employer to know
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By Geraldine
#34336
Hi cpharo36

I have made your latest question into a brand new post as it is an important topic.

It is true that when you go bankrupt HMRC will change your tax code to NT. This means no tax. This change will remain until the end of the current tax year. Then it will go back to normal.

As a result tax will not be deducted from your wages by your employer. The official receiver will normally ask you to forward this extra cash to them.

But don't worry! Your employer will not be told you are bankrupt. HMRC will send them a standard tax coding notice. There is no indication of why. Hundreds of thousands of these notices are sent to employers every year for a whole host of reasons. Employers are legally obilged to simply make the change.

Even if your empoyer wanted to find out why they cannot. HMRC will not tell them. If you were not expecting the change and asked your employer about it they would say they do not know and you need to contact HMRC..... So absolutely nothing to worry about :)
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By Geraldine
#34340
Hi cpharo36

It will not make any difference to your bankruptcy whether you wait or not. I would personally say it is better to do it now. It is getting so close to the end of the tax year that it may be that HMRC won't even bother to change your tax code as there is not sufficient time before it has to be changed back again. If you wait until April they definitely will.
By cpharo36
#34379
Morning,
My bankruptcy form is ready to go.

Geraldine want to ask, once I submit it does the official receiver then contact me to provide bank statements which other documents will they want from me just do I have it all ready and how far will they go back?
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By Geraldine
#34380
An examiner from the official receiver's office will contact you a few days after you go bankrupt. They will want to set up a telephone interview with you. They will discuss any paperwork they want from you at that time.

There is a really good article here where you can read more about what they do and the paperwork they might ask for: What does the official receiver do
By cpharo36
#34423
Hi sorry another question.

As I mentioned I’m going to submit my bankruptcy application at the of feb. You have said that the official receiver will ask for my last 12 months bank statements.

This month I paid £30.00 deposit fir a caravan holiday in August my mum is going to pay for the holiday but I paid the deposit will the official receiver see this on my bank statement and think I have more money than I do.

Also I have put £40.00 on my application for socialising for me and my daughter but over the last year I have spent more than this on socialising and takeaways which I have always paid for using my bank card. Will the official receiver be interested in this or are they just looking for payments paid into your account.

I have missed two payments of my Iva now I’m just so worried that I will get an ipa for more than my Iva was and I will struggle.
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By Geraldine
#34424
Hi cpharo36

To confirm I did not say that the official receiver will ask for your bank statements. Very often they do not ask for any at all. However there is always the possibility they will so it is right to be prepared.

That said I really think you are over worrying. IF the official receiver asks to look at your bank statements they simply do not have the time or resource to scour through every transaction. They are looking for major significant unusual transactions. So no, you do not have to worry about this £30 deposit you paid :)

The official receiver will have litle or no interest in what you have spent on socialising and takeaways in the past 12 months so no need to worry there either. :)
By cpharo36
#34428
Hi Geraldine thank you for your reply sorry you didn’t say they will ask for bank statements it said in the link you sent me the official receiver may ask for 12 months bank statements and tenancy agreement.

I just wanted to clarify if official receiver was interested in spending before bankruptcy application.

Thank you for answering my question :)