Author Topic: bankruptcy proposal  (Read 3640 times)

pickledpepper

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bankruptcy proposal
« on: Jan 18, 2012, 11:29:26 PM »
I received a letter from hmrc saying i owe them almost £2000 which i do not want to pay. Is there any way I can get them to make me bankrupt. I believe it costs just over £400.00 if i were to do it myself. Rather than go down the long winded route of county courts/judgements etc if they could simply do the bankruptcy proceedings immediately. I have a few other debts which i could include at the same time. I genuinely do not have any possessions of note except clothes and books so it would almost make sense to apply for bankruptcy and have done with it. I do not have any savings although my wife has
Any guidance would be appreciated.

James Falla

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Re: bankruptcy proposal
« Reply #1 on: Jan 19, 2012, 05:56:07 PM »
Hi pickledpepper
 
The cost of declaring yourself bankrupt is £700 (£525 if you are on a low income) so getting HMRC to do it for you would be a benefit. However there is no guarantee that they will take that kind of action and unfortunately you cannot invite them to do it.
 
Have you considered the alternative to bankruptcy which is called a debt relief order? This is similar to bankruptcy but is designed specifically for people with debts of less than £15,000, little income or assets. It costs £90 to implement and HMRC debt can be included. As such this might be a much more appropriate option for you and one you can initiate yourself thus remaining in control.
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pickledpepper

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Re: bankruptcy proposal
« Reply #2 on: Jan 20, 2012, 12:31:53 AM »
Thank you James for your reply.


My objective is to get them to pay for either the bankruptcy fee or the DRO as quickly possible otherwise I can see them stringing this out for months on end with the usual threatening letters/summons/county courts etc. Since I have no intention of wasting any money on paying these fees and will certainly not pay what they say I owe them would it not be in their interest to pay the fees and have done with it. Could I not ask HMRC to go down the DRO route for me ? You say I cannot invite them but if I tell them categorically I have no intention of paying them could they not see sense and concede ?. It would be cheaper for them in the long run. I could then include a few other debts at the same time. Much like killing a few birds with one stone and at no cost.
After all, it does say (HMRC) in the small print that if you don't pay they could make you bankrupt. All I ask is that they choose that option immediately and not dilly dally so to speak.
I take it my wife's savings will remain intact whatever happens !!!


What are my options ?


I thank you for your advice on this matter.

James Falla

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Re: bankruptcy proposal
« Reply #3 on: Jan 25, 2012, 03:17:43 PM »
Hi pickledpepper
 
I have to say I have never heard of anyone actually inviting HMRC to make them bankrupt and that having any affect on HMRC's decision making. However it would not hurt to try. Why not have a chat with them and see what they say. You are right that your wife's assets are not at risk as long as you have not transferred anything to her at undervalue in the last 5 years.
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pickledpepper

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Re: bankruptcy proposal
« Reply #4 on: Jun 26, 2013, 11:15:58 PM »
Hello James
Apologies for not getting back to you.
HMRC said they could not say yes or no about making me bankrupt.
I even suggested if rude or inappropriate behaviour on my part might
trigger something. Afraid no go on this either.


So I resorted to returning their letters unopened stating that addressee
unknown. They seem to have heeded this because I have not received
any more letters from them although they did initially resort to writing to
people who know me if they knew of my whereabouts. I told acquaintances
to throw the letters away and they haven't been bothered since either.


I am keen on seeing this bankruptcy through if only I could get someone
to do it for me and HMRC would have been the best option.


I understand that since we last communicated, they have increased the
cost of bankruptcy even more




Do you have any more suggestions ??


Thanks for your advice




James Falla

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Re: bankruptcy proposal
« Reply #5 on: Jun 28, 2013, 12:44:38 PM »
Good to hear from you pickledpepper
 
This certainly is an interesting story and  have to say I am not surprised at the outcome. As far as I am aware it would cost HMRC c£3000 to make you bankrupt. As such they will never do this to try and recover a £2000 debt..... I assume that you are not a homeowner and have no particular assets to speak of. As such HMRC would not recover anything from you in a bankruptcy procedure, so it is just not in their interest. HMRC may be many things but the insolvency and collections people down in Worthing (which is where they are based) are certainly not stupid :)
 
Just so you are aware, the cost of bankruptcy has remained the same in the past 18 months (unbelievably). It still stands at £700. However really my suggestion to you regarding the way forward remains the same. Given that you owe less than £15k, are not a home owner and have little income your best option to be rid of this debt and any other debts you have would be to carry out a DRO which will cost you just £90.
 
If you feel this is inappropriate then please do give me a little more information about your circumstances overall and I will try to help.
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pickledpepper

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Re: bankruptcy proposal
« Reply #6 on: Jul 03, 2013, 01:11:27 AM »
Hello James
 
Thanks for your reply
 
Apologies for the error in the cost of the bankruptcy fee. I thought
it had increased. However, it is still rather steep and out of reach
for many
 
Anyway, subsequent to your reply I did contact an office of their’s
in London (hmrc). They asked for my whereabouts and contact details.
I offered to reveal such matter on condition they commit to filing a
petition which they refused to do. I terminated the call.
So I must consider this avenue of approach at a complete dead end
and no longer worth pursuing.
 
To answer your questions I am not a home owner (wife is) and have no
income to speak of.  So for now James I shall move forward and pretend
the matter no longer exists. I am determined however, not to hand over a
penny to them, even less that I should dream of spending £700 on the
bankruptcy fee.
 
Unless something new transpires  I consider this affair closed.
I would like to thank you for your advice
Regards

James Falla

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Re: bankruptcy proposal
« Reply #7 on: Jul 05, 2013, 04:41:09 PM »
I am glad I have been able to help pickledpepper. Given you are not a home owner and have little or no income then as I have mentioned before I really feel that you should investigate the option of a DRO. This will cost you just £90 and will write off this HMRC debt once and for all so you can finally move on without looking over your shoulder.
 
Good luck with it.
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