Some businesses will find that HMRC debt management, via the solicitor’s office, will make an application for either the bankruptcy of the individual(s) or a winding up order for the company.
We have assisted many businesses who have found themselves facing such difficult situations. Please contact us if you owe HMRC money.
If the business is the subject of a winding up order or you have been made bankrupt, this unfortunately is usually only the beginning of the process. You will be required to cooperate fully with the Trustee in bankruptcy.
In our experience the trader normally will encounter allegations of:
- Being involved in transactions at undervalue (S339 Insolvency Act 1986)
- Having made preferential payments to third parties (S340 Insolvency Act 1986)
- Being engaged in transaction to defraud creditors S423 Insolvency Act 1986
We can assist you, if you face any of the above allegations. Please contact us now.
Furthermore, a bankruptcy may involve the official receiver or trustee in bankruptcy making an application to the court (under S366 of the Insolvency Act 1986) for an examination in private of a range of people involved in, or connected with, the bankruptcy or winding up.
These include the bankrupt, their spouse or former spouse and anyone who may be able to give information concerning the bankrupt or the bankrupt’s dealings, affairs or property.
Under S340 of the Insolvency Act, the trustee can also seek an order to set aside a preference (a payment or other transaction) in the six month to two-year period before a bankruptcy that places a creditor or a person connected with the insolvent person in a better position than they would have been otherwise. The trustee in bankruptcy may recover any sums which are found to be preferences.
Under S333 of the Insolvency Act, a bankrupt has a continuing duty to co-operate with the trustee. Failure to do so is one reason why the official receiver or trustee in bankruptcy may seek a bankruptcy restrictions order, which places certain restrictions on the bankrupt person for a set period of between two and 15 years.
These applications are serious and have far-reaching consequences. If you are facing bankruptcy issues you need to seek expert advice from Taxation-Investigation’s team of specialists. Please contact us.