VIC Issues with ATO and Bankruptcy - Help?

Discussion in 'Debt and Bankruptcy Law Forum' started by Claudia53, 4 July 2018.

  1. Claudia53

    Claudia53 Member

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    Here's my situation:
    • I have an income tax balance liability, which I need to repay by 1. August.
    • I am expecting an income tax refund for the past financial year (2018), the refund won't cover the liability fully, there will be a couple of hundred dollars left as liability, which won't present a problem in repaying.
    • I have a debt with a financial institution, which I cannot manage to repay. That is my real headache and reason for going down the bankruptcy path.
    I have carefully assessed my (financial) situation and are opting for bankruptcy. I am considering filing for B this month.

    My questions are:
    • Will the balance of my income tax liability be 'cleared'? Or frozen until the end of bankruptcy, and then becomes subject for collection -again-?
    • What happens to the income tax refund for 2018? Will the ATO offset the refund? Or will they actually refund the amount? I don't have the income tax return ready for lodgment just yet. I should mention that ATO is aware of a possible refund.
    Has anybody experienced an ATO debt/refund situation like mine? Any thoughts you can share would be appreciated.
     
  2. settle

    settle Well-Known Member

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    Don’t go bankrupt, you don’t need to. What’s the bank debt you owe?

    If you do your tax now and you get refund, it will be offset against debt. Debt will be written off at bankruptcy.

    But you will be surprised if during the bankruptcy, you have further refunds, the ato can take it, it’s law!

    The ato have this hidden law that technically they can take the refund during bankruptcy.
     
  3. Claudia53

    Claudia53 Member

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    35k; I currently have a moratorium in place which ends 31.8.18
     
  4. settle

    settle Well-Known Member

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    Ok we can help you. Who do you owe the bank debt to?
     
  5. Claudia53

    Claudia53 Member

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    Citibank
     
  6. settle

    settle Well-Known Member

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    Ring them and tell me to charge off the account

    They will help u
     
  7. Claudia53

    Claudia53 Member

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    Not sure what you mean by "... and tell me to charge off the account" ? And I trust you mean for me to call Citibank?
     
  8. settle

    settle Well-Known Member

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  9. settle

    settle Well-Known Member

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    Yes call Citibank and tell them to charge off the account
     
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