Debt has finally got unmanageable...help!

[PlanB]

Re: Debt has finally got unmanageable...help!

That's what I'd do...........

And that's what I'd do too. Then take it step by step from there

[odetter]

Re: Debt has finally got unmanageable...help!

Wouldn't BR be easier?

[PlanB]

Re: Debt has finally got unmanageable...help!

I regret having to sell my house, I am now looking at the positive's, I have been stuck in my house with no money for years now trying to earn my way out and all that's happening is im getting deeper in debt, so enough is enough sell up pay the HMRC and bugger off for a fresh start somewhere hot and not the UK! I am only 36 and i need to start living my life again if that makes sense ( a lot of friends cant make sense of it! ) I have lost all my drive and focus here.

You talk of selling your house to pay your annoying creditors which suggests that you have equity in your home. My first reaction is to ask you whether you have considered renting out your house to cover the mortgage (and more) while you go globe trotting?

I'm not 36 (I'll be 64 next month) but I've still got my drive and focus. Let me help you to regain yours

[GlobalC]

Re: Debt has finally got unmanageable...help!

Wouldn't BR be easier?

It not that simple for me. For those that have read my other threads I also have 2 buy to lets as well as my house, the buy to lets are not actually mine although the mortgages are in my name ( difficult to explain but theres a thread on page 2 about it! ) once i sell these properties it will look like i have a lot of equity when in fact i won't and the court ( if going BR ) might think I have fiddled the system or something by giving the cash away to family

[GlobalC]

Re: Debt has finally got unmanageable...help!

You talk of selling your house to pay your annoying creditors which suggests that you have equity in your home. My first reaction is to ask you whether you have considered renting out your house to cover the mortgage (and more) while you go globe trotting?

I'm not 36 (I'll be 64 next month) but I've still got my drive and focus. Let me help you to regain yours

Yes there is a little equity in my own home which would be enough to clear the HMRC and family/friends debt and possibly leave a few £k to get started on my journey. I always thought if i buggered off and left my house rented out I would come back and find it repossessed as all the creditors clamour for a piece of me thats left here! My plan would be to sell my house asap and the flats so i dont have any assets then sofa hop for 10 months and try and save a decent chunk to disappear on. I guess once the assets are gone the other unsecured crap can go to hell. I figure if i dont sell the properties then im going to struggle ( as usual ) to pay the important stuff let alone the other crap and that will delay me making a fresh start and keep me in this boring charade of life i live at the moment.

Sorry for rambling on.....

[PlanB]

Re: Debt has finally got unmanageable...help!

I also have 2 buy to lets as well as my house, the buy to lets are not actually mine although the mortgages are in my name ( difficult to explain but theres a thread on page 2 about it! ) once i sell these properties it will look like i have a lot of equity when in fact i won't and the court ( if going BR ) might think I have fiddled the system or something by giving the cash away to family

If you sell your Buy To Let properties then HMRC will come after you for Capital Gains Tax. If the mortgages are in your name I'm guessing that the properties must be in your name too despite any 'ghost' owners.

I'll take a peek at your other threads to understand the big picture because you need to take a holistic view of your situation.

[PlanB]

Re: Debt has finally got unmanageable...help!

I always thought if i buggered off and left my house rented out I would come back and find it repossessed

I can assure you that they do have WiFi and email access in Thailand.

This could avoid any nasty surprises

[PlanB]

Re: Debt has finally got unmanageable...help!

My plan would be to sell my house asap and the flats so i dont have any assets

And what will happen to your tenants? When do their ASTs expire? Will you have sufficient cashflow to return their deposits? They're human beings too with money worries of their own.

[GlobalC]

Re: Debt has finally got unmanageable...help!

http://forums.all-about-debt.co.uk/s...charging-order

This is the thread involving the b2l's

I don't believe the flats would have any capital gains as they probably wont sell for more than what i paid for them. However there is equity in them but this is the deposit that was paid when purchased, i could be wrong but surely they can't claim capital gains on money that we had used for the deposit's ? after all i've been paying income tax on them the last few years surely that's enough isn't it?

[SXGuy]

Re: Debt has finally got unmanageable...help!

Ok so you owe HMRC 6k for self employment tax due, As its over 1k, im assuming that some of it, is either a balancing charge, or a half estimate on account towards next years tax.

When you owe tax on self employment, if its over 1k, they add a half estimate in Jan and Jul.

Theres nothing you can do to avoid paying the first half estimate on account, but you can avoid the jul one, if you submit a SA303, claim to reduce payment on account, BUT you must make sure, that when it comes to next April, what you submit to HMRC confirms the declaration you made on the SA303, otherwise you will have more complications.

Also, another point to mention, HMRC can not charge interest on non payment of the half estimate due for January. They can bug you to pay it, but there is no legal right to charge interest of add penalties for non payment (as far as im aware, the law around this is not clear cut)

So if you can afford to pay the tax due, but do not pay the half estimate, that "should" buy you some time.


The issue with selling your home to pay HMRC is, i doubt they would wait very long before they pass to their collections team, who will then after a short period, issue a demand of some sort, perhaps even a petition for bankruptcy. Its not like credit cards, where you can try and blag them for a few months/years. Im unsure you would get away with it with HMRC.

[odetter]

Re: Debt has finally got unmanageable...help!

If you went UE on the unsecured debt in the UK then someone could sort out all the post on your behalf whilst you were away.

[GlobalC]

Re: Debt has finally got unmanageable...help!

And what will happen to your tenants? When do their ASTs expire? Will you have sufficient cashflow to return their deposits? They're human beings too with money worries of their own.

They have already expired and they are on rolling contracts. Too be honest if i can sell the two to an investor all the better and they can stay, but really i need to think about me for once and these unfortunately have got to go.

If anyone's interested they make 6% yield so not a bad investment !

[GlobalC]

Re: Debt has finally got unmanageable...help!

If you went UE on the unsecured debt in the UK then someone could sort out all the post on your behalf whilst you were away.

Tried this route when i first came here, only 1 of the debts is sort of UE

[PlanB]

Re: Debt has finally got unmanageable...help!

They have already expired and they are on rolling contracts. Too be honest if i can sell the two to an investor all the better and they can stay, but really i need to think about me for once and these unfortunately have got to go

I can relate to that.

But you cannot transfer your tenants' deposits to the new owner that easily (if at all). You may have a legal duty to return those deposits to the tenants and the new owner will have to take new deposit money and re-insure it. You can transfer the ASTs to a new owner (only if that has been stated in the AST) but it's not that simple.

The good news is this will all be part of the sales transaction. In other words the buyer may well pay off your current tenants' deposit issues.

[GlobalC]

Re: Debt has finally got unmanageable...help!

Ok so you owe HMRC 6k for self employment tax due, As its over 1k, im assuming that some of it, is either a balancing charge, or a half estimate on account towards next years tax.

When you owe tax on self employment, if its over 1k, they add a half estimate in Jan and Jul.

Theres nothing you can do to avoid paying the first half estimate on account, but you can avoid the jul one, if you submit a SA303, claim to reduce payment on account, BUT you must make sure, that when it comes to next April, what you submit to HMRC confirms the declaration you made on the SA303, otherwise you will have more complications.

Also, another point to mention, HMRC can not charge interest on non payment of the half estimate due for January. They can bug you to pay it, but there is no legal right to charge interest of add penalties for non payment (as far as im aware, the law around this is not clear cut)

So if you can afford to pay the tax due, but do not pay the half estimate, that "should" buy you some time.


The issue with selling your home to pay HMRC is, i doubt they would wait very long before they pass to their collections team, who will then after a short period, issue a demand of some sort, perhaps even a petition for bankruptcy. Its not like credit cards, where you can try and blag them for a few months/years. Im unsure you would get away with it with HMRC.

I am hoping i can pay a certain amount per month until i can sell my house. You are correct 2k of the 6k is the half estimate for the following year. I just have to keep my fingers crossed that a deal can struck otherwise im will have to grovel to yet more friends for a loan until i sell the house. Its the only option i have really....