Hi Toddle - Not quite true, I'm afraid. HMRC will "investigate" and will wind-up any company owing the crown any amount where it is technically insolvent (unable to pay debts as they are due). To see how little or how much this means, click on your region on the map on this link to see the latest disqualified directors reports; The Insolvency Service Publications Scheme The current status is that HMRC have a large number of cases to look into, and so is taking them considerably longer to complete, but they are looking at all cases. That said, as long as you've done nothing wrong, and co-operate with the OR, IP and/or any related body, then you have nothing to worry about.

Will happily keep you posted - least I can do on here, given the help and messages I received from the bods here prior to my BR. Checked on the Royal Mail website for my rec delivery letters to C.H., HMRC and co bankers. All delivered today. Letter to CH basically said whats on here - I can't be a director as I am BR, and Co needs at least 1 director, so please advise me. Others had copies of my letter to CH and the invite to wind up the co. BTW when I spoke to BDL regarding the situatiuon they said there are a lot of people in this position at present, and it's a really grey area. One other note aside, in the last few months I have had a VAT inspection, and the HMRC inspectors were diamonds (even enjoyed a few cig breaks with them). Found £500 of errors over 8 years. Also had to speak to HMRC to arrange payment terms on last years corp tax and found them very helpful. That said, sure it will be different if you spoke to them saying "I owe you a few bob and won't be able to pay". Watch this thread.....

Hi Broccoli. I am (or was until I went BR on Friday) a company directory. I went BR for my stupidly large CC/Loan/OD debts after losing my contract and taking a permie job on significantly less (I was an IT contractor) and being unable to meet the minimum payments on them and them not accepting a reduced offer and a freeze interest and charges request. As the only director of the company, I was told by the OR on Friday that I need to resign, and must have no direct or indirect management involvement with the company. This leaves the company without a sufficient governer (memo says must have at least 1 director and there is nobody to fit that role). I also spoke to BDL who were very helpful and sent through some fact sheets and bits and pieces for me. In my situation, I have heavily drawn out of the company as I have done for many years (i draw out pretty much as I need, and then pay the tax at the end of the year when my accountant does the books). Done this for over 8 years, and never had a problem. This year, I lost my contract and so the what would-be corporation tax payment for the amount I have taken will not be met (I usually draw nothing in March and April to cover the corp tax). I was expecting my contract to be renewed for 6 months, so was shell-shocked when it wasn't, and this was the catalyst for my personal insolvency. In terms of the business, I have a PG on a business overdraft (which was included in my BR) and will owe the taxman for this years corp tax (possibly upto 16k). VAT is up to date bar last quarter (around 2k). Never set out to end up like this, so not really much I can do about it. I have around 2k of business assets, and have complied with all rules in terms of ceasing trading when insolvent and resigning as director due to BR. Not a nice position to be in, but ultimately not really my fault (except one could argue I should put money aside for corp tax rather than draw out too much during the year). I sent form 288b to companies house, and have written to all creditors of the company (HMRC and the bank) advising that I had to resign as I am BR, and that the company is technically insolvent as a result, and has ceased trading. With no money, I have invited one of the creditors to wind up the company and will help the OR/IP etc as much as I can. Please don't worry - remember as with everything, it's only money, and you haven't done anything wrong. In my situation, I am totally expecting them to throw the book at me. As I have said though, ultimately, I never set out to end up like this. And that's the bottom line. In IT contracting we can use umbrella companies. They take care of tax and NI etc, and you get a normal PAYE salary - is this something you could use? I'll let you know how I get on over the next couple of weeks. It's going to be interesting.....

Hi AA99 - please believe me when I say, and when everyone you speak to says - BR should be the absolute last resort. Do the I&E - don't worry about how little is left. Make the pro-rata offer to all of your creditors of what you can afford, and pay it. Even if it's a pound or less. Write to them, insist that any correspondence from them is in writing (and if its anything like my 11 creditors, they will phone all hours of the day (8am - 9pm), every day, 7 days a week - just be firm, and polite. 9 times out of ten they hang up if you refuse to give your postcode/dob/shoe size/waist size etc). If any of them decide to take you to court, as long as you've been spot on in your I&E, the judge will only order you to pay what you can afford. BR is a release from overwhelming debt. Definitely not to be taken lightly as has many consequences for a long period of time. Explore all avenues first. Speak to National Debt Line - as mentioned in my post, I cannot recommend them enough. Don't be concerned with how creditors treat you or speak to you - you are doing your best. Majority of the phone collectors read from scripts and are just doing their job. I'll sub to your thread, and let you know from my experiences if and where I can help you. Use NDL as your first stop though (only my opinion) Good luck, and don't give up!

Hi all I was today declared bankrupt, and am soooooo relieved that the mess I managed to get myself into is finally getting sorted out. Papers filed first thing, hearing took about 5 minutes (judge was strict, and as from my previous posts you will see that I owed around 140k in unsecured lending across cards, loans and overdrafts). Judge did, of course, make me feel quite bad by telling me that I could be considered "reckless" (even though I have tried to get myself out of debt by getter better paid jobs etc), and that I could be prosecuted! When pushed on this he said that it was his opinion I had obtained monies by deception in running up such a large debt that I would never realistically have been able to repay. He did also say that luckily for me, it's not down to him to make that choice, all he can do is say yes or no to the BR petition, and there was no doubt this had to be a yes. Made me feel about 2cm tall. the O.R. on the other hand was fantastic. Had to go straight there after court, had a face to face, went through everything in greater detail (about an hour), and then told me what was and wasn't at risk. At the end of it, I have several bits of additional information to gather for him, and then have to go back in a couple of weeks for another interview. Anyone else felt really bad after seeing the judge? I guess ultimately, he is trying to demonstrate the seriousness of BR, but to mention prosecution really threw me. I was under no illusion how serious a step this was before going in there. Also would like to say thanks to everyone on this forum who has been a great help, and made this a lot less daunting. Plus - can't recommend National Debt Line enough as well. Takes a while to get through to them in the current climate (no surprise) but worth it! Day one of a new start.... Now have to deal with the striking off of my ltd company, and I suspect thats going to be whole fresh saga!!

Evening When you go BR and (or if) you get a NIL or N T tax code, then this lasts for the current tax year? So as I am [all being well] going to go BR on Friday, will this mean that my NIL / N T code will last until April (so less than a month), or do you have to be on the code for a minimum period? And do nill/NT codes automatically mean BR, and will the payroll dept know this (my employment doesn't require me to disclose BR etc)? I've spoken with NDL this evening, and they say this is a bit of a grey area?

Hi Gizmo - 3200 on one and 2700 on the other. CAB and NDL both initially thought that she could be eligable for DRO on 6th April, however they then said she wouldn't as she will [hopefully] be buying my interest in the house as part of my BR (had valuations done, very negative equity) this will be classed as an asset under the DRO guidelines (even in negative eq). They said that the best bet would be an income/expendature budget sheet with an offer of payment from her. The only thing she has coming in is family allowance, so at best the most she will be able to pay is £1 per week to each. So to pay off the 3200 one (assuming they stop interest and charges) will take almost 62 years. Assuming we do this, could they try and BR her for these amounts (even if we stick to paying them the £1 each per week)?

BTW - if it makes any difference, they are with Barclays and RBS.

Greetings all. Got my BR date set for next Friday 20th. All forms done and submitted, as much advice as I could get from NDL, BDL (I'm self employed), CAB and of course, the most useful place - right here!! I have a question to ask the "real world" peeps on here. Me and the O.H. have 2 joint accounts (both O/D, and close to their max). The detail is listed on my SOA forms, and CAB and NDL both say that my liability for the debts will go, but that as joint accounts are joint and several liability, this means that the banks will pursure the missus for the debt as this won't go in my BR (not even 50% of it). She hasn't paid into the account for years since giving up work to be a full time mum and housewife, and doesn't earn at the moment. Would the banks really go after her? Has anyone had any experience in this in the real world following BR? Thanks

Hi all - me again, with another question for those that have completed the BR process. Is there anyone on here that can and wouldn't mind sharing their experiences with employment before, during and after BR? Did you have to tell them at work? Did it affect anything at work? Aside from the NT tax code you get in that current F/Y (and is the main reason for an NT code being BR? The chaps at CAB and NDL told me there are many reasons for an NT code) what else, if anything, happened with you at work? Did going BR make things clearer, improve outlook on life and work etc? Also - is there anyone on here with self-employment experience? The paperwork and conditions of BR restrict your ability to act as a Ltd Co Director or have any direct or indirect management of a Ltd Co - how did this affect you if you are self-employed. And what happened to your company when you went BR? Sorry to sound like a Jeremy Kyle/Wright Stuff/James Whale type voiceover there with the lots and lots of questions - am just curious to know. Naturally, I'll provide answers on here to those questions from my own experience once I get the date set and the deed don..

Thanks Gizmo. Your reply gives me one more question... What is an asset - for example, going through the Insolvency forms, I have; No cash in bank No money owed to me 1 Old computer as "tools of trade" - value less than 300 quid No Stock No Machinery/Plant Fixtures/Fittings (see below question)** Property - just my house in negative equity No Stocks/Shares No Farm Stock No Premium Bonds/National Savings No Foreign Propety Nothing due to me in wills/trust No Paintings or jewellery or anything else of value What is fixtures/fittings?? for example we have a fitted bathroom (less than 600 quid for the whole lot including tiles) and a fitted kitchen (with a "seconds" range as the most expensive item, and probably worth (in its current greased filled/well used state) about 300 quid). Should I be listing these? Does anyone on here know what level of detail or value quantifies an asset? Cheers

Hi All - filling in the online SOA forms on the Insolvency website for my own BR ready for next week (big step, decision reached after much talking with NDL, CAB, CCCS, o.h., and the nice bods on here that have contacted me). I have a question on section 8.1 re Property, and as a few on here would have completed it, hope someone may be able to advise; So the question on the SOA simply says "Approximate Value of Property?". Now this to me would be the value of your house (say 125,000 for example). But in the guidance notes and the accompanying form, it says that So do I put in here the value (using the 125,000 for example) or do I put the amount less mortgage and secured loan (and if the mortgage is 105,00 and the secured loan is 30,000 is it OK to put a "-" figure in there, as based on this example the value would be -10,000)??? Cheers

Hi there. I am in a similar situation to you, and I spoke with National Debt Line when I needed to do the same as you and offer reduced/token payments. They advised that I complete an SOA and list the creditors (and I also asked a similar question on here regarding whether to list the creditors or just put creditor 1, creditor 2 etc). I included the names. As you say, I'm sure they have ways of seeing this information anyway. When you made your offer, did you send them an SOA/Budget sheet?

Hi Gizmo. Thanks for the link. Final everything total owed figure (cards, loans and O/D) is 138k Equity is zero Savings and investments = Zero House should be affordable even if interest rates hit 12 or 15% in the future (as long as I can get a fresh start away from these debts) My biggest worry is getting the book thrown at me for my stupidity and to understand exactly what would happen to me at that point...

Hi all Apologies for repetition as this has been on a couple of other threads but here is a very quick summary of my problems. Also apologies for the length - but the questions at the end of all of this needs the below explained to demonstrate... 1997-1999 Full time employment, reasonable salary for age, no debts, several Credit Cards with zero balances, and relatively high limits 2000 - 2005 Freelance (although never without work), great rates, now lots (11) of Credit Cards, zero balances on all, massive credit limits (2003 - baby number 1 born, 2004 move to a new house and get a mortgage ) 2005 - 2007 Following a downturn in my sector, very few freelance jobs available, so a change of career and went back to permanent full-time employment (2006 - baby number 2 born) difference between the permanent salary i was now being paid and my previous freelance rate is massive Ridiculously stupid plan conceived by me to counter shortfall and any other financial woes using the cards, then when the market improves go back freelance and pay off debt Towards the end of 2006, loans taken out to clear cards - big mistake!! Also received unexpected tax demand in 2006 for financial y/e 2005 for my freelance work. This was paid using cards... early 2007 - current Went back to freelance, and although better than a permanent salary, significantly lower than during the boom of 2000-05. My masterplan to use the money to pay off the cards and loans went sour as I only had enough to pay the mortgage, essentials at home and the minimum payments on cards. One potential saviour was that the value of houses around us had gone up significantly since 2005. My mortgage deal was due to end in Aug 2008. Plan was to remortgage to the max I could and clear it all. combined with the freelance rate, it would just have been enough and should have worked a treat. Except the "credit crunch" came. House prices around me began to drop. Sales stopped altogether. and my mortgage provider is... Northern Rock!! got the letter that said "no new deals for exisgting customers" so ended up on their SVR. Which at the time was high and added around 400 quid onto my monthly mortgage payment. Thankfully with the base rate cuts, my mortgage is cheaper now than ever. But its still on SVR. Also couldn't get any other mortgage deals at the time anyway - nobody would touch freelancers unless they had max LTVs of 65%.... 2009 - massive tax bill for financial y/e 2008 has pretty much finished me off, cards and loans and overdrafts totalling approx 120k now, interest rates being doubled on some. 2009 - Freelance market again dried up, had to accept a permanent role, on a lower salary than I was on in 2005. Enough to pay mortgage, bills and put food on table.... Seriously now not able to pay CCs Loans or reduce O/Drafts. So back in November 08, I got my head out of the sand and totalled everything up. It wasn't and isn't nice (With hindsight, it is at the 2005 change of employment role point that I should have sat down, done a budget, and I'd have easily been able to see where things should have and could have changed). I CCA'd all of my creditors, then using the guidelines and self help pack from National Debtline, I did my SOA, and sent this off with a request for my creditors to accept reduced payments. Started getting replies for me to phone theml to discuss, and several said they would only accept reduced payments through CCCS or PayPlan. So today I went through everything with CCCS. Their solution = Bankruptcy. So there is was in the Debt Remedy Manual in black and white. Its now then, that a bit of fear and uncertainty is kicking in. My main concern is that the above is very clearly stupidity on my behalf. So if I go down the BR route, is this going to be classed as me being blameworthy in terms of getting a BRO? What's the worst that can happen to me as a result of this? There is absolutely no equity in the house (in fact, we're in negative as we have a secured loan on it as well as the mortgage), I have nothing of any value in the house (aside from a 600 quid telly). I have a 15 year old motor that is on its last legs. Also - how does BR affect someones employment? Can employers really turn you down because of it? Plus as a self employed freelancer, what happens to my business? I am the only employee. BR's can't be company directors can they? Obviously I will be talking to CAB, as well as the BR specialist team at CCCS, but I wanted to get the opinions of the peeps on here who have the experience. Thanks for reading Captain Bob