| T O P I C R E V I E W |
| GARY2 |
Posted - 18 June 2008 : 11:54:47
Can anyone tell me whatthe percentage levels are for an IPA
i.e. £100 disposable income = 50 %
when does it go to 60 %
My disposable income is £268 minus a figure the OR is checking for my kids so i would sooner be paying 50% than 60%. |
| 15 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 19 June 2008 : 10:22:39
Best of luck!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| mst |
Posted - 19 June 2008 : 10:18:12
Will do. Thanks again everyone and I will post how things go on Monday just in case it can assist anyone else on here debating over the IVA/BR route. |
| JulianDonnelly |
Posted - 19 June 2008 : 10:16:07
Hi Mst,
On the meeting on Monday, ask about IVA's and I'm sure they'll work through it with you to see if an IVA is a better solution.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| mst |
Posted - 19 June 2008 : 10:04:21
I am not averse to the idea of an IVA but considered Bankruptcy the more viable option for the following reasons: -
1. I do not own any assets over £1500 (just a car that I could argue I need as my Mother is over 60 with leg trouble, unable to drive and living 2 hours away).
2. My IPO would last only 3 years whereas an IVA lasts 5 years and involves IP fees.
3. IVA/BR are more or less equally detrimental to your credit rating.
4. An OR is more reasonable to the BR when it comes to organising a monthly payment to your creditors.
5. I privately rent and it is highly likely that I will be made redundant within 5 years so as I would always meet any IVA payment I estimate that 2-3 years of payments coupled with a high 11 year redundancy payout would mean that I end up paying all of the debt off anyway and only have a bad credit score to show for it.
If I have over-simplified any of these points then please let me know.
Many thanks again for all your support/advice,
mst |
| melanie_giles |
Posted - 19 June 2008 : 08:03:37
If the judge feels that you could pay your creditors better outside of bankruptcy, a bankruptcy order is certainly not automatic. You could find they order you to explore the possibility of an IVA. Unfortunately there a few ways to avoid paying something to your creditors if you have disposable income - and it is difficult to argue than this is not fair.
If you have a larger disposable income, it might be more sensible to have a chat with an insolvency practitioner to ensure that you are fully appraised of all options available to you.
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 |
| abd |
Posted - 18 June 2008 : 22:01:56
Hi
My OR didn a very intersting calcuations I did not get.
he added my attachment of earning 195 pound to my surplus and then established the IPA.
He said as Iam not going to pay this AOE money any more Iam better off in term of income so he need to ad it as an extra. The thing is this attachment of earning in newly issued, before my BR.I did not pay even my first one before my BR, how can I be better of with something I do not own-confused.
Abd |
| mst |
Posted - 18 June 2008 : 21:04:02
Funnily enough this evening I got a message on my phone from Brett England's company and I have a meeting on Monday.
I'm hoping a solution can be found that will enable me to work away for a year but be able to do so knowing that whilst I am there my debts are going down. |
| m and v |
Posted - 18 June 2008 : 15:45:07
Hi mst - leave a message on Brett's website and he'll give you a call. I had a couple of phone conversations with him during which he gave me excellent advice on filling out the SOA.
He may even suggest something other than BR - although I think you have already explored other options?? It seems a shame to go BR if you are going to be able to repay your creditors with your IPA? Maybe you need someone to negotiate a repayment plan?
Leave him or one of the other experts a message.
Vicki x |
| andymac |
Posted - 18 June 2008 : 14:19:41
quote:
Originally posted by sueann
Id like to jump in with an IPA question as well, how long after the IPA is set and paperwork finalised is yor first payment due?
Depends, mine was about month and a half. |
| sueann |
Posted - 18 June 2008 : 13:54:50
Id like to jump in with an IPA question as well, how long after the IPA is set and paperwork finalised is yor first payment due? |
| mst |
Posted - 18 June 2008 : 13:39:23
Is there a maximum % figure the IPO will take? |
| mst |
Posted - 18 June 2008 : 13:38:06
Many thanks Vicki,
I am slightly concerned that at present my disposable income (ie: the available income I have excluding repayment of debt) is probably higher than the chart given above.
I think I could end up paying a rather large IPO which I don't mind as it should be based around what you can afford. Would a company like Brett England be able to reduce this figure in the SOA? I think what is likely to happen is I will pay a high IPO, probably get made redundant from my job of 11 years during the 3 year IPO period and have to pay back all my redundancy money and then I will have bascially ended up paying back in total (minus maybe 2 years of lost interest) the entire debt balance back to my creditors.
Never mind, I might be out of a job, nothing in the bank, a shot to pieces credit rating, but I will be out of debt.
Cynical mst |
| m and v |
Posted - 18 June 2008 : 12:50:09
Hi mst - no, I don't think it works like that.
Once the judge has stamped the order and you are BR then you stay BR.
The OR's job is to realise any money in your assets (if you have any) and to establish how much disposable income you have. So even if you had £500 they would only take a percentage.
Vicki x |
| mst |
Posted - 18 June 2008 : 12:09:00
I hope you don't mind me tagging on to your topic but I too have a question relating to IPA. If it could be argued by an OR that you sufficient disposable income with which to pay your creditors could BR be declined by a judge? Even though I can just about meet my payments I am effectivley only ever payign interest so in theory I could continue paying for the rest of my life and never get out of debt. |
| andymac |
Posted - 18 June 2008 : 12:05:46
here you go:
Here's the IPA payment scale:
This is a table of IPA percentages that you can expect to pay on any surplus income:
1st Column=SURPLUS INCOME
2nd Column=AMOUNT TO BE PAID
3rd Column=% OF DISPOSABLE INCOME
50 Nil
60 Nil
70 Nil
80 Nil
90 Nil
100 50 50
110 55 50
120 60 50
130 65 50
140 70 50
150 75 50
160 80 50
170 85 50
180 90 50
190 95 50
200 100 50
210 105 50
220 110 50
230 115 50
240 120 50
250 150 60
260 156 60
270 162 60
280 168 60
290 174 60
300 180 60
310 186 60
320 192 60
330 198 60
340 204 60
350 231 66
360 238 66
370 244 66
380 251 66
390 257 66
400 264 66
410 271 66
420 277 66
430 284 66
440 290 66
450 297 66
460 304 66
470 310 66
480 317 66
490 323 66
500 350 70
510 357 70
520 364 70
530 371 70
540 378 70
550 385 70
560 392 70
570 399 70
580 406 70
590 413 70
600 420 70
|
