If you have failed to pay your tax rates in full including interest to HM Revenue & Customs (“HMRC”), you can have a Statutory Demand served against you by HMRC if the debt which you owe at least £5000. If you have failed to pay the sum stated in the Statutory Demand, HMRC can proceed to present a Bankruptcy Petition against you.
Top tip: Once a Bankruptcy Petition is presented against you, even if you have the funds to pay the debt in full or can prove that they do not have any tax liabilities, HMRC can also request that the Bankruptcy Petition continues unless you pay HMRC’s additional costs for preparing and presenting the Bankruptcy Petition. It is important to settle your debt before it reaches the Petition stage.
Local Authority (Council tax)
If you have failed to pay your Council tax liability, then the Council may action to apply to the Magistrates’ Court for a Liability Order. If the Liability Order is not paid in full and the debt due, (including any penalties and legal costs) is for £5000 or more, the Council will commence Bankruptcy proceedings against you.
Top Tip: Once a Bankruptcy Petition is presented against you, even if you have the funds to pay the debt in full, the Council can make a request that a Bankruptcy Order be made and in addition the Council will seek payment of their costs for preparing and presenting the Bankruptcy Petition. It is important to settle the debt before the Petition is presented.
Our team can assist you in contesting or issuing a Bankruptcy Petition. If you would like to have a confidential discussion with a member of our team, if you complete our contact us form, we will call you back at a time that is suitable for you or you can contact us on 01908 414990.