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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Hi I owe approximately £48,000 to H M Revenue & Customs

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I owe approximately £48,000 to H M Revenue & Customs on my self-assessment tax which has accumulated because I haven't been able to pay anything for the past few years. They have asked me to pay off the debt over the next 12 months which is impossible for me and so obviously the next step would be to take recovery procedures which I fear would inevitably lead to my bankruptcy.

However, I own a flat in London which has about £100,000 equity in it and is jointly owned with my wife who is not bankrupt. Is there any chance that if I am made bankrupt through this debt I could possibly have my home repossessed by the creditors although my wife will not be bankrupt? However, my sister and her son are currently living there as I am living in France.


In a bankruptcy, a form J restriction is added to your jointly owned property's entry in the Land Registry which could lead to a court ordering the property to be sold and your trustee in bankruptcy claiming your beneficial interest in the property (in this case assumed to be 50,000 pounds being your half of the equity in the property).


Your partner may buy out your beneficial interest so that they become the sole owner of the property and your debts are paid off.


If this is not ordered, your trustee will be informed of any dealings with your property in the event you try to sell it or re-mortgage it.

If you owned the property in your sole name, then the title would have been transferred to your trustee in bankruptcy but this does not happen in a jointly owned property.

Hope this helps

Customer: replied 4 years ago.

Is it very likely that the court would order the sale of the property even if my sister is living there with her son?


How could my partner buy out my beneficial interest. She hasn't £50,000 available to be able to buy my interest.


Thanks for your help.

She could try and remortgage.

Yes, the court could order the sale nevertheless or postpone the sale until such a time when your sister and her son are able to find alternative accommodation.

Hope this helps
Customer: replied 4 years ago.

Finally, would it it be in my interest to try and pay H M Revenue on account e.g £1,000 as a gesture of willingness to pay or would it be a waste if they are planning to make me bankrupt anyway?

Whatever you pay will be credited to your account so you will end up with a debt of 47K instead of 48K which is still substantial, so I would expect them to go for bankruptcy anyway, although they may postpone it for a while.

All the best
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