Author Topic: Debts to Inland Revenue & Bankruptcy  (Read 5103 times)

hassan

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Debts to Inland Revenue & Bankruptcy
« on: Dec 21, 2009, 02:59:32 PM »
Simple question - if you are declared bankrupt, does that wipe out money owed to the Inland Revenue too, or do they have a get out clause?

Sovereign

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Re: Debts to Inland Revenue & Bankruptcy
« Reply #1 on: Jan 07, 2010, 12:52:22 PM »
The Inland Revenue debt would in all probability be written off in bankruptcy but you may be asked to contribute towards all of your debts in an Income Payment Agreement (IPA) that would last for three years. Whether this Agreement is to be put in place or not is at the discretion of the Official Receiver and is dependent on the outcome of your income and expenditure statement which you submit with your Statement of Affairs at the time you petition for bankruptcy.
Sovereign Consulting

ALEXMAC

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Re: Debts to Inland Revenue & Bankruptcy
« Reply #2 on: Mar 06, 2010, 04:36:30 PM »
The debt with HMRC will definitey be part of bankruptcy, they are treated just like nay other creditor.
 
Alex
www.the-debt-clinic.com
 
 

bankruptcy.co.uk

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Re: Debts to Inland Revenue & Bankruptcy
« Reply #3 on: Mar 08, 2010, 05:52:56 PM »
I liked Sovereign's answer. The debt is definitely included but you may be asked to pay an IPA (the same as any other bankrupt). The conditions are based upon the figures you enter in section 6 and 7 of the petition. This is used to calculate your disposable income based upon your income - your expenses.

Eg, if your disposable income is anywhere between 0 and £100 exclusive you pay nothing.
If your disposable income is between £100 and £250 inclusive you pay 50% every month for 3 years. (Eg £150 = £75 a month for 3 years).
If your disposable income is between £250 and £350 inclusive you pay 60%, and it increments even higher up to 70% if your disposable income is over £500.
 
Therefore it is in your interest while filling in your petition to maximise your propper and legitimate expenditure to therefore decrease your disposable income and ensure you pay less. For example... You can claim £30 a month for holiday savings! :)
 
Best of luck!

Raphael Gilbert
Raphael Gilbert
Head of Insolvency Divison www.ban