Hi

My OH brother has 29k of debt he owes the nice taxman, he pays him £200 a month out of his minimum wage pay (court ordered payments), he also owes some council tax, not sure ho much and they are also threatening to take him to court too.

He wants to know if he can write these debts off by going bankrupt? he rents a house, has a £200 car and no assets so i dont see why he shouldnt

Any advice?

thanks

Hi Gwebstech

Welcome Back To CAG - Id say at this point he should receive professional help and advice for going bankrupt due to the nature of what is being considered.

But below maybe of some benefit to you.

HERE

I would also let other members of the site team advise in case there is something that I have missed.

Thread moved to the appropriate forum

Regards

Andy

My OH brother has 29k of debt he owes the nice taxman, he pays him £200 a month out of his minimum wage pay (court ordered payments)

Your Brother in law can go back to Court and ask for a variation in payments if they are too high and causing him financial issues.

Bankruptcy will effect your Brother in law if he is employed or going to be employed in the financial or security sectors, it even effects him if he is a Governor at a local school (until discharged) so he will need professional guidance.

Stigman

Hi

hes got nothing to lose, he doesnt own a house or anything. Personally i think its best for him

all we werent sure about is can he write off tax debts

thanks

Tax debts can be included as well as the Council Tax.

With the tax debt was he in a Partnership with another Business Associate?

Only thing that cannot be included are amongst others any Social Fund Loans and Benefit Overpayments.

Stigman

Thanks a lots STIG!

no he wasnt in partnership with anyone

Ok, after Bankruptcy if anyone chases your Brother in law for debts before his Bankruptcy date other than a few exceptions like the example above then just refer to whoever chases to the Bankruptcy number and Court

The Judge will give your Brother in law a talk about do you understand the implications, please make sure he does and that he has talked to someone who can spell out everything.

It's not like on TV, you all sit at a table in a room.

Stigman

oh i didnt know it was all in a room

ill tell him, thanks

Hi all

Im asking for my brother in law, he recently got very ill and nearly died and since this hes decided to finally go bankrupt and wipe all his debts off as i told him to do years ago.

His main debt is with the taxman, its circa £35000, they were taking something like £400 per month out of his wages so hes decided to go bankrupt. Now im wondering does this get wiped off if he goes bankrupt or does it still count? he says he also owes some council tax - a few £1000 i think

Im assuming its easy enough to go bankrupt, just pay the fees and you have to not come into any money for 3? years or so or they can take nay lump sums off you to pay what you owed?

thanks

Quote

Although the term “bankruptcy” may sound negative, it can sometimes help a person who is insolvent and needs a fresh start. You need to weigh the “downsides” of bankruptcy against the possible advantages.

The main advantages of bankruptcy are that:

• When you are discharged from bankruptcy, your debts are written off. This includes income tax and most other debts; but not maintenance obligations, parking fines and student loans
• You will normally be discharged after one year, or less
• Once the bankruptcy order is made, your creditors may no longer contact you about your debts
• If HMRC makes you bankrupt, you will not have to pay the court fees

https://taxaid.org.uk/guides/taxpayers/tax-debt/bankruptcy

thank you, he cant work now due to illness so he thinks its the right thing for him to do