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gadget
Starting Member
United Kingdom
3 Posts |
 Posted - 07 March 2009 : 14:16:30
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Please help! I have waited until now (March 09) on purpose to go bankrupt because I am worried about the Nil Tax Code being on my wageslip. I understand any Nil Tax Code goes back to a normal code at the end of a tax year (March). So my plan is to go bankrupt this month so hopefully no Nil Tax Code will ever appear on my wageslip. I work in a tiny office where everyone knows everything and I know if a Nil Tax Code appears on my slip even once, it will be questioned in front of everyone (seriously) and I will not know what to say - I don't want people in office knowing about my debts etc! So if I go bankrupt this month, say, middle of March, will I technically never have a Nil Tax Code if I get a payment order made against me (because it is now, essentially, the end of the tax year)? Or will it make no difference and they will do a Nil Tax Code regardless until, maybe, March 2010? I know it may seem like a needless worry, but it is a real problem. I understand that you only get a Nil Tax Code IF you get a payment order made, is this right? My friend went bankrupt and they had no payment order and never got a Nil Tax Code. Reading the forums in here it seems to be a trend that no IPA/IPO = No Nil Tax Code. Am I right?
Sorry to be a pain, but my other worry is that I am 3 years through an IVA already which I just cannot keep up now. I have spoken with them, I need to throw in the towel and go bankrupt... should have in the first place :( Question is, is bankruptcy procedure harder, easier, or the same for someone in an IVA already? I'm scared my IVA will make it all more complex and horrible. I really just want a quick trip to the court, a smile from the judge, a telephone interview asap after from the OR, no payment order and certainly NO NIL TAX CODE!! But hey, doesn't everybody?!
Please help me... my life is never straight forward, and I'm getting very worried now the day is looming.... :( |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 March 2009 : 14:22:22
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Hi and welcome to the forum.
Before you go BR you will need your IVA to fail. For this to happen you will need to miss 3 IVA payments and your IP will fail the arrangement. Have you missed any payments yet?
Regarding your IVA would it be possible to speak to your IP regarding having your payments varied? It seems a shame to go BR 3 years in, as if you have £100 or more disposable income you would get an Income Payment Agreement for a further 3 years, and your credit rating will be shot for another 6 years from the date of your BR.
Regarding the Nil Tax code, if you were able to go BR before the new tax year starts in April you wouldn't get one, as HMRC wouldn't have time to impose it. If you go BR once the new tax year starts you will get one if you pay tax.
I'm sorry to hear that you work for such an insensitive company - could you say there has been an error with your tax in the past and this is why your code has changed?
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
Edited by - Skippy on 07 March 2009 14:27:12 |
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gadget
Starting Member
United Kingdom
3 Posts |
Posted - 07 March 2009 : 14:50:21
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Hi
Thanks for the reply. My IVA has been failing for about 5 months and they have been calling me with the usual threats. So I qualify that way at least!
I am not worried about credit record as this has been shot to pieces for so long I can live without it for more years yet.
So you are saying if i go bankrupt this month I will not get a Nil Tax Code at all? Even if I go bankrupt in, say, the last week or two of March? Supposing my court appearance happens in March but they take until April to interview me, sign the paperwork etc...? Or am I bankrupt the moment I step out of the courtroom?
Sorry for so many questions, the process just seems very hit and miss after reading the government website on insolvency!!
As for disposable income, this is another problem (sigh). On paper, it will probably look like I have disposable income, but I have no assets, no car, live with parents and my dad is self employed not making much money in these current times, so I pay a large contribution each month to keep us here (my mum doesn't work - they are getting old now!). So I pay fair amount of rent, I pay for own food, my travel costs are over £300pm on train etc... plus (and I know I am my own worst enemy) I borrowed money off other family members whilst in my IVA - I pay back each month to them BUT of course I cannot "prove" this on paper... so... they may think I have money to spare but I don't... else I wouldn't be defaulting my IVA!! ARGHHH! Plus I am paying a court fine right now per month for something which was not my fault, and this was the final thing which killed me off and made me stop paying my IVA.
I have pretty much nothing each month once everything has gone out... maybe enough for a beer and bag of chips, but it's not easy to prove it. I could get family members I owe to sign a letter I guess to say "hey, he owes me X amount and is paying X amount per month". Will they listen in the court? Are OR/judges nice about this sort of thing? :( |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 March 2009 : 14:59:33
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Do you mean that you haven't made a payment for the last 5 months? If that's the case you need to chase your IP for a termination certificate.
If you go BR in March HMRC won't be able to change your tax code as they won't have time, and it wouldn't be worth their while as it would revert back to normal in April. As soon as your paperwork is signed you are BR.
Regarding the money you owe your family members, this would be part of your BR and they would need to be listed as creditors. You wouldn't be able to carry on paying them once you are BR.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
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gadget
Starting Member
United Kingdom
3 Posts |
Posted - 07 March 2009 : 15:07:48
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Oh no really? I didn't realise personal debts would be included. No-one knows anything bout my debts or IVA up to now! I thought I could just list my IVA official debts and hold the personal ones back for me to deal with.
I wish I would get sacked from job maybe, just tell them all where to stick it at my IVA office and let the creditors take me down to court and have the shirt off my back.
Oh man, am I in for a hard time now - when friends n family find out bout all this I may as well just disappear! Where did I leave that jumbo pack of sleeping pills and that bottle of whiskey? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 March 2009 : 16:32:21
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All debt has to be included unfortunately, otherwise it could be viewed that you are preferring a creditor.
Please don't talk about pills and whiskey - you'll make me feel like I've driven you to it! There will be a solution for you, it's just a case of finding it.
Have you thought about a DMP? I don't know if it would be possible, but it could be a way forward while you decide what to do once the IVA has failed.
Hopefully one of the professional experts will be along shortly to be give you more advice x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
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LastResort
New Member
United Kingdom
56 Posts |
Posted - 07 March 2009 : 22:35:01
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Hi gadget, I know what you mean about work. I actually work as a payroll clerk, so everyone in my office would know if my tax code changed. They probably wouldn't ask me outright, but you never know. The person who would action the change sits directly opposite me!
My BR date is 19th March, so I'm hoping to avoid the NT code aswell. |
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John
New Member
United Kingdom
73 Posts |
Posted - 08 March 2009 : 11:29:10
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Hi
I think in the current climate those that are privvy to changes in employee tax codes are naturally going to assume that an NT tax code = bankruptcy.
However, there are other reasons for the code to be applied such as an overpayment of tax in previous years or that you run a small business outside of your PAYE employment and HMRC have agreed to deduct all tax from the self assessment forms you submit each year in respect of your small business and PAYE positions conjoined.
John White
England Jackman & Spacey |
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Please help! I have waited until now (March 09)
