I have had a Income tax bill for £15,000 & am unable to pay it as I have a lot of outstanding debts. Would it be written off if I declared myself bankrupt?
Yes and all of your other debts would as well. HMRC are one of very few companies that will take you to court to declare you BR so there isn't really any point in declaring yourself BR and having to pay the £600 fee. You may as well wait for HMRC to declare you BR.
You will need to be careful if you have any assets (i.e. car, house, etc.) as you may lose these if you are declared BR. If you also have your own business then you will no longer be able to be a Director once you are declared BR. It may be better to post your complete situation so we can advise.
Have you spoken to HMRC about possibly making small repayments to pay the amount off?
I thinks that you need to seek advice as the hmrc will chase you relentlessly for this debt and use bailiffs etc. I would look at the options open to you and one is bankruptcy, but you need to get help with this and with poist bankruptcy which will be dealing with the official receiver etc.
All unsecured debt can go into your bankruptcy as well as the hmrc debts and the slate will be wiped clean for you. Having a company to help you means that you can rest easy as they will deal with all your creditors for you and complete any paperwork that needs to be done. They would of course give you the right advice which is important.
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If you are self employed it is probably a good idea to have a chat with one of the experts on this site - they offer free advice
HMRC will make you bankrupt and don't always "chase you relentlessly" if you speak to them and advise them of the position
There may be other things to consider though so I would get some advice before doing anything
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
I have had a Income tax bill for £15,000
Posted - 19 July 2010 : 18:50:13
