I'm scared of loosing my home

[lukasz]

The old saying goes that a man has to have a child , build his own house and plant a tree ..
The BR isn't the end of life , surely not - but the end of stability in terms of owing something like a house. To get back on a property ladder I'd have to wait until my wife gets on 25k job or better and with her flawless credit history she can buy one for herself - but then the prices will be out of her reach I suppose because her wages will never catch up inflation and the market. Perhaps shared-ownership scheme with me paying the 50% part rent from my wages would be a good solution.
and yes - the pressure and stress is really big - mounts up very quickly - quite unnecessarily - if creditors had a bit more human approach to insolvencies. They - especially the high interest companies are like unleashed dogs - they don't listen you just build up the pressure. They treat you like a criminal from the start. In the end of the day I have their comany interest at heart but if they do not work with me towards solution just play foul that brings us to BR which in my case now may mean they will get nothing back.
I do not understand reasoning behind their actions.
I'm now waiting for the CCJ judgement for the main creditor and NR to follow up on their charging order , so far continuing DMP payments as normal see if they can bear with me or will vote for BR themselves.

[Rainbow]

Hi Lucas
Have just googled Tax credits and Inland revenue site states that you are still able to claim if you earn over £60K and I believe that you can claim refunds for previous years - You could see if you are entitled on line at the Inland revenue web site.

Good Luck
Rainbow

[lukasz]

Tax credit comes back with £2/week entitlement rainbow .. i don't want to involve State into all this now anyway , there are families out there who really need those funds more than me

I think two possible solutions are cut down on nursery - get au pair as Melanie suggested or give up and go petition for BR immediately - the longer it goes on the worse off we are.
I'm looking for au-pair now in fact and it doesn't seem such a bad idea - council tax would increase slightly for 3 people from 2 but seems I could get the bill down to 400ish if I privided meals and laundry and the lot for the pau pair person. That is really tempting.

Another issue with BR for me would be probably HomeOffice nationality directorate implications in the longer run , if I ever wanted to swear my alliegiance to HM the Queen and swap passports.

[zoe]

Hello
Sorry your point about Council Tax is incorrect
Your Council Tax will not increase if there are 3 people living in the house instead of 2 unless you are perhaps claiming housing/council Tax Benefit?
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[lukasz]

oh , i thought it was on a 'per head' basis. that's good then.

oh this all is driving me mad. one one hand i can't afford iva on the other there too many risks involved with bankruptcy.

I saw on one of blogs here that someone was put on 0% tax band in order to redirect those funds into Trustee and payment order was also applied? can they take my tax like that?? it would mean about 500 a month for them , nearly as much as I would be originally paying on the loans - in 3 years they'd get fair amount back
My house will be up for sale definately - NR will not pursue charging order it appears and that leaves me with 11k equity at least.
That won't go down too well with my wife - she will go asbsolutely mad - she's put so much effort to get this house up to decent level. Where my part is half of it means about 5k , then costs of sale - 2k - leaves them with 3k - I'm not sure if it's even worth the game considering thhey have to take my partners best interest before deciding to sell it.
That's be really saddening to loose it for "lousy" 3k

[Skippy]

Hi Lukas, when you are given a Nil Tax Code it only applies for the tax year that you are made BR, so if you went BR today you would only pay your tax to the OR until April 2008.

If you are deemed to have more than £100 surplus income you will have to pay a percentage of the surplus into an Income Payment Agreement (IPA) for 3 years.

Is your house in joint names? It would be worth you taking advice from CCCS or the CAB regarding your house as there seems to be a small amount of equity in it.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[lukasz]

so do i have to pay that tax back later to inland revenue in the following year or how does that work?
I'm unlikely to be able to raise fees for BR sooner than december , then it takes some time to process so supposely i could get judgement somewhere in february?

[lukasz]

oh i think I will put my blog somewhere online , my experiences and all my life seems weird enough to write a book

[fudge34]

Hi Skippy
I understand that you are an expert at BR can I talk to you about it?

Hi Lukas, when you are given a Nil Tax Code it only applies for the tax year that you are made BR, so if you went BR today you would only pay your tax to the OR until April 2008.

If you are deemed to have more than £100 surplus income you will have to pay a percentage of the surplus into an Income Payment Agreement (IPA) for 3 years.

Is your house in joint names? It would be worth you taking advice from CCCS or the CAB regarding your house as there seems to be a small amount of equity in it.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Skippy]

Lucas, I'm not an expert on this as I didn't get a Nil Tax Code, but when you are made bankrupt the OR will notify the tax office who will then give you a Nil Tax Code, meaning your tax will be paid to you. It is then your responsibility to pay the tax to the OR.

If you are not planning on going BR until February you will only have to pay the tax for the remaining tax year, i.e. until April 2008 providing your tax office sets it up in time - if it is not set up before the end of the tax year you won't get one. I didn't get an NT code as I went BR on 29th March and as the tax year finished on 5th April they couldn't set it up on time.

Fudge, I wouldn't say I'm an expert but if I can help I will

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[lukasz]

that seems very peculiar - so Tax office will give me tax relief for a year to get my debts paid off? But nothing comes for free , surely it is to be repaid later to IR or not? if it is to be repaid what is the point? it simply transfers liability to the tax man and then they will increase the tax code and my budget again will go crushing down.

I don't quite follow this mechanism even if IR is to just grant me those monies to repay to my creditors - so unbelivably generous. In my case if they were to get that in time it'd mean £500 a month extra for OR which is quite a lot. It seems goverment is trying to protect businesses revenue by allowing such trick - if they have to write the lot off it means less tax for IR and the circle closes , hmm.. smart

[Adam Davies]

Hi lukasz
The nil tax code means that the money goes to the official receiver.Once you pay this over to the OR your net income will be the same as it will be when your tax code goes back up.
It,s just the mechanics of bankruptcy.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

And do remember that the nil tax code is only for this current fiscal year - so that from April 2008 onwards your tax code will be back to normal!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk