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Will I Pay Taxes In Bankruptcy?
Question:
My mum is about to go bankrupt but im worried she doesnt know what she is letting herself in for
Can they take your house if there is no equity left in in?
will i pay tax in the next 12 months after bankruptcy?
Answer:
If there is no equity in a property and someone goes bankrupt, the Official Receiver/Trustee may allow them to buy-out their interest in the property under a low cost buy-out scheme.
The OR/Trustee will also look at the affordability of the property and see if the person going bankrupt can afford the property. If there appears to be an affordability issue they could request the person look for other accommodations.
In bankruptcy someone can receive a NT or no tax code on their wages.
The taxes they would usually pay are then paid into the bankruptcy.
This does not mean they will owe taxes, but that the taxes they would have paid go to the bankruptcy.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: Will I Pay Taxes In Bankruptcy?