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PlasticQueen
Junior Member
United Kingdom
171 Posts |
 Posted - 12 December 2007 : 13:02:33
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Hi,
I posted a few weeks ago and got a reply to my questions but I now have some more. I would be very grateful for a reply.
1. Why does my tax code change when I am bankrupt? Do I not pay tax any more?
2. How does the OR know about any other property I have (This is not to be deceiptful, you understand - my father has unwittingly put me on the title deeds of one of his properties. I have no financial interest in this property). Do they search the Land Registry records? If I get myself taken off the title dees, does this solve the issue? If not, is there any way I can prove I have no financial interest? Would they take that into consideration?
3. There is no equity in the property I own, but I will be unable to keep up the repayments on the mortgage. I will be able to make a contribution, but long term the property will be repossessed. How long does a repo take from start to finish if I stopped paying it althogether, and will they pursue me for the shortfall if it falls within my bankruptcy period?
Thanks
Amanda |
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Johnny Debt
Junior Member
United Kingdom
265 Posts |
Posted - 14 December 2007 : 15:30:17
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If you pay tax under PAYE, HM Revenue and Customs (HMRC) will usually apply a 'nil tax' code to you for the rest of the tax year in which you were declared bankrupt. This means that soon after your bankruptcy, your employer will be told NOT to take any more income tax from your wages for the rest of the tax year. HMRC applies nil tax codes for various reasons, and the new tax code will not tell your employer you are bankrupt. The nil tax code does not mean no tax is due. It just enables HMRC to claim the whole of your unpaid tax for the year of your bankruptcy.
There will be extra money in your pay because of the nil tax code. This money will form the basis of an IPA or IPO, even if you have no other real disposable income. A nil tax (or NT) IPA or IPO may be the only amount you have to pay, and the agreement or order will stop when your tax code changes. If you have other real disposable income, the IPA or IPO will reduce when your tax code changes. |
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Johnny Debt
Junior Member
United Kingdom
265 Posts |
Posted - 16 December 2007 : 07:16:38
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Sometime ago I had to do a land registry search on a property, however this search came up with nothing. I was then informed by the land registry that I could do a personal search. So I did this, and the search result showed that this particular person did have additional secured stuff registered to his property!
If you feel that you are under extreme pressure to resolve your debt issues, have you considered a debt management plan? This will keep your creditors happier and also give you more time to sort out all your issues. |
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Please could you answer these questions
