Owing Revenue bankruptcy only option

Startnovr

Registered User
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3
Folks,

Worked overseas, never filed any tax returns since moving here 10 years ago, marriage had been breaking down for years. Had a breakdown last year with all the pressure and am broke and out of work. Was too afraid to even try get dole as hadn't paid in to system and was afraid would flag me to revenue. Am giving house to wife in divorce settlement, hopefully divorced by October.
Any advice as to how to proceed. Have been raked by fear but have to make a move and try get a job at least. Revenue will be the biggest creditor.
Was advised by someone to go straight for bankruptcy without even talking to revenue. That it would absolve you of sins known and yet to be declared. Anyone got any advice?
Thanks.
 
Hi Startnovr, first thing is to take care of yourself, at least one hot meal a day, exercise etc.

Next, try and claim the dole. While you may be not be able to claim Job Seekers Benefit, you might be able to claim Job Seekers Allowance. Call in to your local Citizens Information Centre and ask for advice on claiming everything possible, medical card, rent allowance, everything. You have to take care of yourself. Also, be looking for work and somewhere new to live.

Once you have an income, and somewhere to live, then it's time to sort out the Revenue. Not filing tax returns can result in a criminal prosecution. So the thing to do is to file the tax returns, without making payment, and a few weeks later apply for bankruptcy. Assuming of course that you are unable to make arrangements to pay the outstanding tax, interest etc. Maybe your tax liability is less than you think, and you are worrying needlessly. Might be an idea to engage an accountant to work it all out for you. But first things first. An income and somewhere to live. Best wishes.
 
TLO,

Thank you very much for your advice. Am very very fortunate to be living with my parents at the moment (thank God) so am being well taken care of. I dragged my heels with many things in life, filing for divorce being one of them. Was/am afraid that in bankruptcy that my half of the family home (which I'm giving to my ex) would be in danger. Earliest I can be divorced is October. Am able to work and should get out and pick up something to start me in a new direction, but have been afraid that would have drawn undue attention either when I wasn't ready. My tax liability whatever it will be is money I don't have so bankruptcy will be inevitable. Just a matter of when best to face it. I'd like to be earning first, to at least have made those steps. The last couple of years have been a hell of my own making/mind. Once it's in progress or done I'll likely wonder why I insisted on torturing myself so much over it.
And thank you again.
 
Hi Startnovr

A further thought. Bankruptcy is the nuclear option, and resets all the counters, but there are other options. For example, if your debts total €35,000 or less then a Debt Relief Notice may be feasible. You apply for one of these through MABS, and do it after your divorce settlement when you will have little or no assets in your name. The Revenue Commissioners will have to give permission for their debt to be included, if they don't, then revisit bankruptcy. Also, you are right about bankruptcy and the family home. In bankruptcy the Official Assignee will look for your half of it, and there have been instances in England where divorce settlements were upset by a subsequent bankruptcy (but not the divorce). So it now seems that the first thing to do is to start working out how much you owe, and that means bringing your tax returns up to date. Or at least get them prepared, so you know where you stand, and have an idea as to which direction you are going to take.
 
You need to consider the implications of transferring any assets prior to any bankruptcy application.

Is there a loan on the property?

How much were you making each year? We had a case recently guy had not filed VAT, PAYE or Income Tax returns for 8 years owed them €200k and just said I've nothing left now so you're getting nothing.

He is applying for a non contributory pension next month!!! Great little country!
 
Will be way more than that for sure. Can't bear the thought of dealing with it but am not recoiling from the thought like I had been, and know will be a new man once I start at least. That's the other thing that I never kept records, so will be estimates all the way, as you said - the nuclear option. Bankruptcy will be the only option really, I should have acted on it before now but just didn't know where to start.
 
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