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T O P I C R E V I E W
Angie
Posted - 05 June 2010 : 09:40:30 Please can anyone answer the following, as I have had conflicting reports from people.
1. If you are declared bankrupt, do you still have to pay HMRC arrears? 2. Can you go to prison if you owe money to HMRC? I know in the US some people did back in the 40's. Many thanks.
3 L A T E S T R E P L I E S (Newest First)
Angie
Posted - 07 June 2010 : 21:20:53 Many thanks indeed for answering my questions so speedily.
Richard P
Posted - 07 June 2010 : 11:35:29 Angie
I agree with debt info.
with reforms of the bankruptcy rules HMRC lost their status as preferential creditor and as such the debt is included in BR
yes their have been some high profile figures who have gone to court for tax related issues, but these have been around fraud, and evasion (deliberate acts to beat the tax man). Joe public that has run into financial difficulties and then used their tax money to try and keep the family or business financially afloat will not be sent to prison.
Incidentally the tax man is one of the creditors that will petition for your bankruptcy but that normally takes them 2 - 3 years.
If you are currently running a business and considering keeping the business running after bankruptcy, i would seek proffessional advice because if you structure it wrong all your hard work could be wasted effort if structured wrong. If this is the case can i suggest speaking to Paul at Reviva, they will be able to properly help with the planning and process
regards Richard
debtinfo
Posted - 05 June 2010 : 10:16:30 1. No you dont
2. You dont go to prison for owing money in the uk, There are a couple of reasons you can go to prison for money related situations but these are connected with fraud and theft, not for simply owing a debt
