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Max Lowry
Max Lowry, Advocate
Category: UK Bankruptcy Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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Re my previous question just to recap my company cannot pay

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Re my previous question just to recap my company cannot pay its tax bill as i have paid out all company profits as dividends to myself and bit by bit ive spent it. i have no personal assets i rent a room have the clothes i stand up in and a car worth a few hundred quid. i have numerous personal debts several ccjs against me. should i just declace myself bankrupt and if so how does this effect my position with the tax man
Hi, welcome to Just Answer. I will help you with your question. Do you have an income?

Max
Customer: replied 4 years ago.

No i get by on handouts from friends and family

Great, thanks for the additional information. Based on what you have said your assets and income are very low and as long as you do not mind being bankrupt for 12 months (the usual period for a straightforward bankruptcy) this seems like the best option for you. It will include all debts up to the date of bankruptcy including anything you owe to the tax man. You will need to cease being a bankrupt for the period of bankruptcy. I can't imagine the Official Receiver will be interested in your assets. Bankruptcy will mean your debts will be written off and you will not owe any money to anybody. It sounds like the level of debt you have is probably very high (if it was company profits etc) and therefore I can't see that any other procedure will help you deal with the debt. It does sound like this is your only option to put the debt behind you once and for all.

I hope this assists. Please let me know if I can assist further.

Max

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