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The Bankruptcy Service Case Study Example: Paying Tax During A Bankruptcy

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


A look at bankruptcy and tax changes - how going bankrupt affects your tax liabilities.


Do I still pay tax when bankrupt?


For the year between being declared bankrupt and being discharged from bankruptcy, your tax code will change to NT (no tax), as money you would have paid in tax is redirected to pay for administration charges on the bankruptcy. The exception would be if the bankruptcy occurs late in the financial year, around February or March, as such arrangements have to be sorted by the end of that tax year. You will receive full details about how and where to send any money.

Free debt counselling and advice is also available from the Money Advice Service available at: www.moneyadviceservice.org.uk

TheBankruptcyService.co.uk doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep TheBankruptcyService.co.uk 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 TheBankruptcyService.co.uk, 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.