Bankruptcy

[PrinceJohn]

Im not sure if I am posting in the correct forum, if not please accept my apologies.

I know a lady who was declared bankrupt in early June of last year. She chose to make herself bankrupt. She has since been on an income payments order which is due to finish with the end of the tax year. When she declared herself bankrupt she was earning considerably less than she is now. She has failed to tell her Official Receiver that her earnings have increased as she claims she cannot afford to live on the money they allowed her to keep from her wages. She suffers with mental health and has been worryingly depressed in the last month. When I spoke to her she confided in me about the extra wages and not declaring and is terrified that the Official Receiver will ask to see her P60. Is this likely? I didnt like to point out that on top of that she is guilty of tax evation as she is keeping the excess tax from the excess earning also. I would like to be able to reassure her - although I do not condone what she has done, she is my friend.

[cheesy]

When she declared herself bankrupt she was earning considerably less than she is now

Oh the irony

What happened to your friend?

[Generix]

So in summary, the person declared themself bankrupt which will likely result in any debts owing to be for the most part written off by the businesses/persons owed.

In the meantime the person has increased their income. Furthermore since increasing the income they have been taking more than allowed/declared by the official receiver because they think they need more money.

On top of all this the person has commited tax evasion.

The only way I can see to console your friend is by pointing out that they are in good company this time of year, as they are not the only one that will be completely stuffed this Christmas - there are plenty of Turkeys that are in exactly the same position.

[section 44]

I would like to be able to reassure her

Of what? What would you like to be able to do?