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Ask Clare Your Own Question
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34911
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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If I owe money to HMRC and my only asset is positive equity

Customer Question

If I owe money to HMRC and my only asset is positive equity in my house can they make me sell it to recover monies in the £40,000 region. I have no other assets and am currently no working.
Submitted: 1 year ago.
Category: Property Law
Expert:  Clare replied 1 year ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

Who else lives in the property?

Customer: replied 1 year ago.
I live alone in the property, but have a son who comes to stay occasional when he comes back from Uni.
I currently have a friend who is staying on a short term basis.
The property has positive equity of around £200K after estate agents and legal fee's.
I work as an I.T. contractor, and am currently out of work, with very limited funds.
I have a number of outstanding CCJ's and have child maintenance payments over £1000 per month and mortgage repayments of around £1100, before living expenses, utilities and other costs from the CCJ's.
Expert:  Clare replied 1 year ago.

Then I am afraid that yes the HMRC can apply for a Bankruptcy Order to force the sale of the house to pay the debt.

I am sorry not to give better news - please ask if you need further details

Customer: replied 1 year ago.
Thank's Claire.A couple of further questions.
How quickly does this type of action move, will I have time to sell it independently, say 4-6 months?
Although this is probably more of a criminal question, am I likely to be prosecuted and get a criminal record even if I pay off the outstanding monies ?
Expert:  Clare replied 1 year ago.

You have ample time to deal with the sal yourself - knowing that you are doing so will encourage them to give you extra time in any event

It is unlikely that you will be prosecuted