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

Moderators: TalbotWoods, JaneClack

By Tammy
#2181 Hiya,
My husband is a sole trader and we are below the tax thresh hold.
He has been doing his own accounts for a while with no apparant problems.
However we have recived a letter from the Inland Rev. saying they are going to carry out an investigation..... we have lost most of the recipts etc., so as they have a veiw that we are guilty until proven innocent what can we do?
Also if they demand payment for the last 10yrs for example and we can't pay will we be made bankrupt?
If we are how will that affect the rest of the family ie. children me (wife) and our assets will the recievers have the power to take items belonging to the children or me ?
Would the answer be to divorce my husband and get a seperate home for myself and the children as I don't want this to upset the children?
ByDavidc
#2182
Tammy wrote:Would the answer be to divorce my husband and get a seperate home for myself and the children as I don't want this to upset the children?


Seems somewhat drastic unless you want to do this and are looking for an excuse.....In truth it would not make any difference to action an official reciever can take as they can undo any transaction going back years if they have been effected to place assetts behond the reach of the reciever. However if the debts are solely your husbands responsability and insolvancy proccedings are taken against him, your property or that of your childrens is not at risk. Again unless it has been transfered to you or them to put it out of reach of the reciever. That said I think you are jumping the gun somewhat and should first of all address your problem , or your husbands problem with the Inland revenue which is something I doubt if anyone can help you with I will have a look for some numbers to ring for you to seek advice.
David
Have a look here first

http://www.bdl.org.uk/
By Tammy
#2183 Hiya David thanks for ur reply yes i know it's drastic and of course i would not want to divorce my husband i am just worried about my children but if as u said there thing cannot be touched then that is a big worry off my mind. Once again thanx