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Dave Beans

Kerry Katona "facing Bankrupty For 3Rd Time"

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http://www.dailymail.co.uk/tvshowbiz/article-2550397/Kerry-Katona-facing-bankruptcy-THIRD-time-pals-claim-lives-means.html

So you can spend as much as you want, learn nothing from your mistakes, time & again...and have time to produce another kid and to bugger off to Tenerife...yeah, why not...

Edited by Dave Beans

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Celebs are different, in a way it's an investment in her future reality career as she "opens her heart" about yet another personal disaster.

The other two members of the band are still pretty hot, Kerry seems to be fulfilling the fat mate role.

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I imagine she's still under trustee's orders in her second bankruptcy.

She's getting married in the summer, so maybe hubbie will become her manager and take most of her income, buy out her interest in the house.

It's an interesting example of the debt illusion.

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So the business model seems to be continue an earning stream from the occasional reunion bash, a few guest appearances with the likes of Titchmarsh, magazine deals, plus some royalty payments and maybe now and then a new record release - and suchlike. Regular bankruptcies to get out of debt and the taxpayers and savers to keep bailing out the debt.

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So the business model seems to be continue an earning stream from the occasional reunion bash, a few guest appearances with the likes of Titchmarsh, magazine deals, plus some royalty payments and maybe now and then a new record release - and suchlike. Regular bankruptcies to get out of debt and the taxpayers and savers to keep bailing out the debt.

The one thing I find baffling is that banks keep lending her money that she doesn't pay back. Why would they do this?

Same question for those lending to multiple-defaulting football clubs like Portsmouth.

I wouldn't lend any of my money them, but somebody keeps doing it.

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The one thing I find baffling is that banks keep lending her money that she doesn't pay back. Why would they do this?

Same question for those lending to multiple-defaulting football clubs like Portsmouth.

I wouldn't lend any of my money them, but somebody keeps doing it.

Interest rate?

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http://www.dailymail.co.uk/tvshowbiz/article-2550397/Kerry-Katona-facing-bankruptcy-THIRD-time-pals-claim-lives-means.html

So you can spend as much as you want, learn nothing from your mistakes, time & again...and have time to produce another kid and to bugger off to Tenerife...yeah, why not...

+1

Time to bring serious consequences for feckless people who shamelessly exploit bankruptcy. It's just too easy to do this repeatedly and it is the rest of us who end up paying for it.

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So the business model seems to be continue an earning stream from the occasional reunion bash, a few guest appearances with the likes of Titchmarsh, magazine deals, plus some royalty payments and maybe now and then a new record release - and suchlike. Regular bankruptcies to get out of debt and the taxpayers and savers to keep bailing out the debt.

You forgot the 'gain 3 stone\ lose 2 stone \ sell a fitness CD \ rinse and repeat' meme.

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The singer declared bankruptcy for a second time in July 2013, after doing the same in 2008 due to £86,000 unpaid tax bill.

Death and taxes.

Well, death anyway.

It's partly the nature of self-employment and the tax system. Plus all the 'professional' advisors taking their cut along the way.

Pretty much endemic in the entertainment industry where income is volatile but can be substantial.

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So the business model seems to be continue an earning stream from the occasional reunion bash, a few guest appearances with the likes of Titchmarsh, magazine deals, plus some royalty payments and maybe now and then a new record release - and suchlike. Regular bankruptcies to get out of debt and the taxpayers and savers to keep bailing out the debt.

who is giving her the credit?

And you cant really blame a person for following the lead of the experts...Central bankers.

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+1

Time to bring serious consequences for feckless people who shamelessly exploit bankruptcy. It's just too easy to do this repeatedly and it is the rest of us who end up paying for it.

Yeah but, haven't plenty of people got rich, it has paid loads of wages and other peoples debt liabilities before the bankruptcy .......debt makes the world go around.......most debt will never be repaid if it can't be serviced..... Only high inflation over many years has a chance of ever paying the principal, that is if there is something left worth selling to sell. ;)

Edited by winkie

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I won't sleep now!

Funny, you'd have thought Kerry Katona facing bankruptcy was a fairly safe standby story, like Obama marriage in trouble.

Or homeowners joy as house prices rocket

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"The singer was declared bankrupt for a second time in July 2013, after doing the same in 2008 due to £86,000 unpaid tax bill."

I always thought that....

(i) people actually went to prison for not paying income tax?, and

(ii) even if made bankrupt, in the usual sense, that HMRC could still lay claim to any unpaid taxes at a later date if/when you ever come by sufficient money/funds to pay it?

Edited by anonguest

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"The singer was declared bankrupt for a second time in July 2013, after doing the same in 2008 due to £86,000 unpaid tax bill."

I always thought that....

(i) people actually went to prison for not paying income tax?, and

(ii) even if made bankrupt, in the usual sense, that HMRC could still lay claim to any unpaid taxes at a later date if/when you ever come by sufficient money/funds to pay it?

Very rare these days to go to prison, HMRC simply takes more and more money in fines etc, bit like pay day loans companies they want cash not revenge...

For bankrupt celebs usual trick is to pay your spouse the money- hence re-marriage soon etc

My partner encountered one possible pitfall of this, she once acted (as accountant) for an insurance firm who was defending a claim by a z-lister who had fallen in a hotel bath and injured herself. She claimed loss of earnings, but she was bankrupt and her husband was getting all the earnings! Result - case dismissed...

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Very rare these days to go to prison, HMRC simply takes more and more money in fines etc, bit like pay day loans companies they want cash not revenge...

For bankrupt celebs usual trick is to pay your spouse the money- hence re-marriage soon etc

My partner encountered one possible pitfall of this, she once acted (as accountant) for an insurance firm who was defending a claim by a z-lister who had fallen in a hotel bath and injured herself. She claimed loss of earnings, but she was bankrupt and her husband was getting all the earnings! Result - case dismissed...

Fascinating......though that still doesn't quite answer the curiosity about whether HMRC can and do continue to pursue unpaid taxes - even after nominal bankruptcy (e.g. IF Katona ever comes into meaningful amounts of money/assets personally again would they be entitled to take it off her, etc). Is there some 'statute of limitations' time limit on how many years HMRC can continue to claim unpaid taxes?

It would still be interesting to hear under just what sort of circumstances the HMRC do press for prison sentences. Or do they have no say in the matter - and it is purely up to the sentencing court to decide the severity of the sentence? The lack of prison sentences in recent times that you refer to merely reflecting a more liberal/lenient attitude by judges instead?

This particular Katona case is about as close to willful and deliberate lifestyle intention not to pay tax as I can imagine. I can imagine her only defence is to plead being a 'dumb bimbo' to the court and expect mercy - as opposed to some shrewd hard nosed businessman who clearly knew what he was doing from the outset.

However, taking your comments as said, this raises the intriguing possibility that anyone who is not on PAYE can simply deliberately structure their finances and estate a la Al Capone, p**s their money up the wall on fast cars and women, 'hide' some and then plead poverty when tax payment time comes IF and when HMRC comes asking for their tax.

Edited by anonguest

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"The singer was declared bankrupt for a second time in July 2013, after doing the same in 2008 due to £86,000 unpaid tax bill."

I always thought that....

(i) people actually went to prison for not paying income tax?, and

(ii) even if made bankrupt, in the usual sense, that HMRC could still lay claim to any unpaid taxes at a later date if/when you ever come by sufficient money/funds to pay it?

Bankruptcy means rolling up the persons estate at a particular time....it adds up the assets and liabilities, sells what assets it can and settles the liabilitie as best it can.

Certain rules on some assets and liabilities are enshrined in law, so the bankrupt doesnt lose pension and student loan debt remains.

However, the HMRC is a creditor on the estate and will get the settlement to which it is entitled.

The debts previous to the bankruptcy are now the property and liability of the Official receiver.

bankrupts go to prison where fraud is the key driver for the bankruptcy.

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Bankruptcy means rolling up the persons estate at a particular time....it adds up the assets and liabilities, sells what assets it can and settles the liabilitie as best it can.

Certain rules on some assets and liabilities are enshrined in law, so the bankrupt doesnt lose pension and student loan debt remains.

However, the HMRC is a creditor on the estate and will get the settlement to which it is entitled.

The debts previous to the bankruptcy are now the property and liability of the Official receiver.

bankrupts go to prison where fraud is the key driver for the bankruptcy.

MmmmmmmmmmOK.....so the answer then seems to be that once forced into bankruptcy by HMRC, and subsequently discharged from it a few years later at most, that HMRC can not continue to claim for any tax that still remained unpaid after the estate/assets were sold off. In other words a genuinely new blank sheet for the individual - to do it all over again

As for 'fraud'....well that's a grey area isn't it?

Suppose someone privately in their mind decides one day (perhaps even after reading about Katona or someone like her) that they will live the high life, not pay any tax for as long as they can and then when judgement day comes simply throw themselves at the mercy of the court and plead stupidity and expect t' 'get away with it'. In my mind that is deliberate tax evasion. Of course how can you prove the original intentions of the person?

I guess then that 'fraud' is where some shrewd hard nosed businessman calculatingly squirrels away money over time with the intent to enjoy it later on at some point? Whereas someone like Katona who fritters it away in the here and now is just treated as stupid?

IF I was going to commit tax fraud I know I would choose the latter route everytime.

Whatever happened to 'ignorance of the law is no excuse' and all that jazz?

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