Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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Byonke
#261343 Hi peeps Im after some advice ..and it isnt for me we are doing fine !
Somebody I know needs some good advice...He has his own Ltd company but isnt doing so well..he has been stupid and has the Inland Revenue chasing him for 15k...he owns his own house jointly with his wife it has no mortgage...it is at the point that the Inland revenue have been knocking his door...his daughter has told him to go Bancrupt...he stupidly took a 10k loan from the bank to pay his overdraft off on the banks advice...can they take his house if he is a limited company ? And anyone got any good advice I can pass on
Thanks
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ByDuffNCustard
#261383 The taxman is ruthless - and has some seriously heavy clout. Best advice is to get him to start the parley immediately - might be able to negotiate a repayment plan. The taxman can and will bankrupt him - and he takes precedence over the bank.

The bank is nowhere near such a serious creditor - if they know he owes the taxman they will put up and shut up - in theory they could BR him but for £15k? no a payment plan for them too after the tax is sorted.
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Byonke
#261393 I know the tax man is ruthless...his buisiness isnt doing well ...but if he went bankrupt as a ltd company can they take his house which is in joint names and paid for ? It seems silly to me that he took a loan off bank to pay his overdraft...seems more appropriate that he paid tax man !!
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Byonke
#261403 The parley ?
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Byonke
#261413 Hi Duff...by all accounts they have tried to work out a plan...but it has gone passed that....We are trying to find out how it effects a Ltd company !!! And if they can take the house ?
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ByDuffNCustard
#261423 Assuming that the tax liabilities are for a Ltd Co - then no as it would be the company made BR. I'm no expert on company law but the assets of the company would need to be figured out and if the house is not in anyway owned by the company then the official receiver can have no claim to it.
Byjohnny 73
#261483 typical bank response

customer: i'm struggling to clear my overdraft / pay my loan

bank: no problem sir, you cant afford to pay what you already owe so we'll lend you more money
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ByJaneClack
#261553 It really depends on whether they are considering bankrupting the company or they are pursuing him for a personal bankruptcy ie if it is the company then his assets are protected; if it is his unpaid income tax then they are not!

Contact www.bdl.org.uk - Business Debtline - their advice is free.
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