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| T O P I C R E V I E W |
| pix1 |
Posted - 11 April 2008 : 11:20:11
I was just wondering if a bankrupt becomes subject to an IPA/IPO would he/she only ever be subject to losing in the terms of an IPA/IPO between 50-70% of whatever disposable income was left after essential expenditure? E.g. If your disposable income was £200 per month you would lose between £100 and £140 of it? Interestingly, if you started earning a lot more whilst undischarged than you were earning at the date of the bankruptcy order, say, £2000 disposable income per month would you then lose between £1000 and £1400 per month or would it somehow end up being the case that the Official Receiver would take even more? Does the principal hold if you start earning an astronomical £20000 per month. Would you then be subject to an IPA/IPO of £10000 to £14000 per month.
What I am asking is: if you go bankrupt is there no incentive to try to better yourself whiulst bankrupt because you might lose all your disposable income at some certain level of income or does the 50 to 70% of income always hold? |
| 4 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 13 April 2008 : 18:01:00
There are definately faults on both sides, but it does look as if there is a tightening of the credit industry now as loans are becoming more and more difficult to get, so perhaps the banks are learning lessons about lending monies to people who simply cannot afford to pay. Let's hope so for all sakes.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| pix1 |
Posted - 13 April 2008 : 16:57:53
Melanie, I spent years trying to make realistic payment arrangements with various creditors and usually came up against a brick wall as they normally demanded amounts beyond what I could afford. They are not, after all, nice people very often. They often encourage debt, e.g. by unsolicited increases in credit card limit or advertising slogans, such as Barclaycard's 'don't put it off, put it on'! Its no use expecting the debtor to be responsible but the creditor getting away with irresponsible short termist lending. Maybe the whole financial system will finally crash very soon. |
| melanie_giles |
Posted - 11 April 2008 : 22:24:55
I would have thought the incentive to try and pay your creditors as much as possible would be good enough - and there is no way you would be allowed to retain between £6,000 and £10,000 on the £20,000 figure you suggested in your example.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| JulianDonnelly |
Posted - 11 April 2008 : 13:52:59
Hi Pix,
You are correct in your calculations, however if your disposable income were to increase to such a level this would change the structure of your insolvent position, therefore you may well be advised to propose a fast track IVA and pay your debts in full via the IVA.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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