An unaffordable tax demand, a bankruptcy petition, and two properties that weren’t his
I hadn’t filed my tax returns for several years. When I finally did, the bill was around £44,000 — and HMRC wanted £5,000 a month to clear it. That was completely unaffordable. What made it far worse was that two properties appeared to be in my name. They weren’t mine. They belonged to my teenage step-daughters. I needed to work with someone who could help and make sure the girls didn’t lose the property gift made by their grandparents due to my bankruptcy.
For several years, I hadn’t completed my self-assessment tax returns. I was so busy in my job as a private chauffeur that I just didn’t get round to getting the paperwork together and seeing an accountant. I’d get letters from HMRC, but then they would stop and I wouldn’t get round to dealing with it. I wanted to get my affairs in order, and I finally got round to it, giving my records to an accountant, who submitted the historic returns. The resulting tax bill came to approximately £44,000.
On top of that, I had other debts of around £65,000 — all being managed through a repayment plan. I assumed I could do the same with HMRC. But HMRC wanted repayments of something like £5,000 a month, which was completely unaffordable. I kept in touch with them and explained my situation, but they petitioned for my personal bankruptcy.
My deeper concern was the two properties that appeared to be mine, because they were registered in my name. They did not belong to me. If they had, I would have sold them and cleared the debt to avoid bankruptcy altogether. In reality, they belonged to my teenage step-daughters. Their grandparents had paid the deposit to purchase each property as a gift. I needed to work with someone who could help make sure the girls didn’t lose those properties because of my bankruptcy.
The Outcome in brief
Adviser: Barry Mitchell · Referred by Kam Sira, Accountant, TaxAssist — Watford
Two properties showing in his name. A tax bill he couldn’t repay at HMRC’s terms. Bankruptcy already in motion. The fear here wasn’t just personal — it was that a debt he couldn’t service would take something that had never been his to give. The step-daughters’ homes, bought by their grandparents as a gift, were at risk of being caught up in proceedings they had nothing to do with. Mr. CR needed someone who would understand the full picture and fight for the right outcome — not just process the bankruptcy.
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The work behind the outcome
Both properties were excluded from the bankruptcy estate entirely. The step-daughters’ assets were protected. Mr. CR was discharged from bankruptcy within three months — nine months ahead of the standard twelve-month term.
The central challenge here was not the bankruptcy itself — it was demonstrating clearly to the trustee that the two properties did not form part of Mr. CR’s estate. This required careful preparation of the evidence: the source of the deposits, the beneficial ownership, and the documented intention at the time of purchase.
We understood the situation Mr. CR and his family found themselves in. We formulated an approach, prepared thoroughly for the impending bankruptcy hearing, and then assisted Mr. CR with the enquiries that followed from his bankruptcy trustee. The strength of the evidence — and the clarity with which it was presented — meant the trustee accepted the position without prolonged dispute.
Both properties were excluded from the bankruptcy estate entirely. The step-daughters’ assets were protected. Mr. CR was discharged from bankruptcy within three months — nine months ahead of the standard twelve-month term.