Today was an odd day, odd that someone asked me a direct question that nobody has asked me before. Although I have asked myself the question many many times. What is the question? well it is this:
“why didn’t you go bankrupt and start again?”
well, let me explain. I wanted to pay back the tax debt, and I mean the whole lot, the whole 100K. A ridiculous as it sounds, it was pride. I wanted to do the right thing despite not a lot of the tax debt being my own fault (see other posts), and I was confident I could do it. I didn’t count on how difficult the HMRC would be, or the amount of additional fines.
Anyway, that has been discussed many times. The point is though, why didn’t I go bankrupt, it wipes all your debt and you have a clean sheet. But, it comes with a lot of disadvantages too. I was earning really good money so I went for the repayment option, and it has gone reasonably well, until now of course.
Only now do I regret the decision, not completely, but enough to wonder why I didn’t follow the logical exercise. The thing is that thousands of people go bust, or become insolvent. I didn’t want to be a statistic, but ironically I have become one in that I am now one of the millions in debt.
Interestingly, I have seen a few articles in the newspapers recently whereby people who earn 100K a year can’t survive. People scoff, but I can totally relate to that. In effect, the more you earn when self employed, the more tax you pay so you are always behind. So my plan for continual payment plans was flawed from the outset.
It depends on what type of person you are, whether you can hold your hands up and say “that’s it, I’ve had enough, take it all” and begin the clean slate. Or, like me, you constantly find ways to pay things back or maintain your game face. In effect, your pride stops you looking like a failure.
But, I’m not a failure yet. Yet, being the key word here. I definetly believe in what comes around, goes around. I figure I have actively paid back an enormous amount of money and have done everything possible to achieve that, so I must be due a break soon?
We shall see, was the decision the right one or not? Only time will tell, but the time is running out.
If I fail anyway, I hope I maintain my pride.