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The Bankruptcy Service Case Study Example: HMRC Proceedings

The following bankruptcy case study is a fictitious example, designed to help you understand working situations where bankruptcy is and isn't appropriate.

HMRC Bankruptcy Proceedings. Will they visit my house, and other questions.

HMRC have initiated bankruptcy proceedings against me as I owe them over £30,000 and have turned down my offer of payment. Last week they served me with a statutory demand. I am worried about what happens next. What do I have to do now?

For starters, you are not obliged to attend court, unless you have an objection to the order. If proceedings do get as far as a hearing, you should be served notice at least a fortnight prior to the date. No one will visit you at home, and there are documents to be completed, but they are different to those you’d complete if you had initiated bankruptcy yourself. You will be able to include unsecured debts in the bankruptcy estate, but obviously if you own a vehicle of value or a property with equity, then these may be at threat. Seek professional advice so that you can gain a full picture of what lies ahead.

Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.