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Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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bankruptcy

Customer Question

i am going to court on monday 30th for a bankruptcy order from hmrc. i have tried to pay monthly but hmrc dont want to know. How can i avoid the order?

Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome my name is XXXXX XXXXX I will assist you.

How much do you owe HMRC? Do you have any other creditors?

Have HMRC said they will agree a repayment plan?

Kind regards

AJ
Customer: replied 3 years ago.

Hi, I owe them £31k but already repaid them in 10 weekly payment of £350.i dont have any other creditors. Yes, 3mths but cant afford it. I offered them £500 per week but it not good enough for them

Customer: replied 3 years ago.

r u there?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

The botXXXXX XXXXXne is if cannot pay your debts as they fall due and the debt is over £750 then a creditor is entitled to petition for your bankruptcy there is not much you can do to stop that.

However in my part experience the only way a creditors will agree to help you and postpone bankruptcy is if you make an offer for a repayment plan based on affordability. The only way to do this is to disclose to HMRC a breakdown (including bank statements)of your income and should why you are only offering £500 per calendar month. If you can justify it they are more likely to accept it.

Do you have any assets that you could raise some finance against? Does the tax bill relate to personal tax or a business? If it is a business do you have any employees?

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

i have told them that but they said it will take too long to repay the debt. They are not prepared to accept my offer. I have also told them that if i am been made bankrupt i will loose my contract therefore wont be able to make any payment at all.

 

I dont have any assets,i rent my house etc...

 

Its a business debt and no, i don't have any employee

 

£500 per week NOT month!!

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

What type of business is it? Is it a limited company? If so does the company have any assets?

Effectively they refused £2000 per month?

As there is no obligation on HMRC to accept any deal the only thing I can suggets which I have seen work before is to contact your local MP and see if they will put pressure on HMRC to support your cause.

Can you tell me a bit about the circumstance of the debt, how has it arisen? Is it a fine for example?

Kind regards

AJ
Customer: replied 3 years ago.

Yes, Over £2000 per month. That's what i can't get my round!!!! I don't have any assets at all, maybe £1000 for my car and that's all. I told them what is the point in making bankrupt when i don't have any asset and i ammore than willing to repay as mentioned above.


 


Can the County Court force them to accept my offer?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

As a suggestion, would you be able to borrow any money off a relative or friend. Say £10k? If you offered them £10k up front and then say £2k per month, the debt would be repaid in less than one year.

The County Court wont have leeway to force them to accept an offer if you fulfill the insolvency criteria under S.123 of the Insolvency Act and the petition has been properly presented. You would need their agreement in some shape or form, or you would need to prove you are solvent.

I look forward to hearing from you.

Kind regards

AJ