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| Lou1978 |
Posted - 29 June 2010 : 10:54:32
Hi, myself and my husband have a long and complicated story which I wont bore you with but it ends up with us here - completing a bankruptcy petition. I have a few questions if anyone is kind enough and has the time.
Firstly, I have read things such as "all quiet, 2 days to go and no IPA" What does that mean - what does everyone NOT want to hear after they have been declared bankrupt!?
Secondly - we have a car, worth about 5 grand, we owe the finance on it. My husband has to have a car for work, we know you can have a car up to a couple of grand value whilst BR. What happens here then? Will they take the car, pay off the o/s finance (of hwich there are no arrears) which then leaves us car less and with no money to buy even a cheap one. My husband would loose his job without a car, but we have no money (obv) to buy a cheaper one... it is possible for his boss to buy it, which would settle the finance (obv) and give it back to my husband as a company car? Would this be frowned upon as favouring a creditor?
And finally, we have nearly completed our paper work - am I right in thinking we literally tuen up at court and hand in our papers and then sit and wait? Or do we make an appointment?
Thank you so much - I am so lost...
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| 4 L A T E S T R E P L I E S (Newest First) |
| debtinfo |
Posted - 29 June 2010 : 18:52:28
what sort of finance is it, is it HP, a lease or a loan agreement |
| Lou1978 |
Posted - 29 June 2010 : 15:03:13
Thank you everybody. I'll speak to my husband and see what's what with the car now I know the details a bit better.
I will check with our local court what the procedure is.
I expcet we will have an IPA as we will have about 200 left over for the family. Ho hum! To be honest they can have it all, i just want this over now.
Thank you all so much, this is such a minefield and people like you make it bearable and navigation possible.
Good luck to anyone else in a similar boat and thanks again for replies.
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| gettingoutofdebt |
Posted - 29 June 2010 : 11:45:07
"Firstly, I have read things such as "all quiet, 2 days to go and no IPA" What does that mean - what does everyone NOT want to hear after they have been declared bankrupt!?"
An IPA is an Income Payment Agreement. If you have more than £99 DI (Disposable Income) i.e. income after rent, food, utility bills, etc. then you will pay a percentage of this (between 50% and 70%) for 36 months. The IPA can only be implemented while you are BR so if you don't get an IPA before you are discharged then you will never get one.
How much finance is left on the car? Is this more than the car is worth?
You should contact your local court to see what their procedure is when declaring BR. In some cases you just turn up on the day with your paperwork and BR fee, in other cases you need to make an appointment and turn up at the appropriate time. |
| Bridgewood |
Posted - 29 June 2010 : 11:41:26
Hi Lou 1978
The IPA is an income payment agreement that the OR asks you to pay from your earnings.
It can only be implemented before your discharge from bankruptcy which is usually a maximum of 12 months but could be earlier so anyone with a discharge looming is hoping that they don't hear anything from the OR with regard to an IPA
As far as the car is concerned it depends on the net equity after taking account of the value (if the car is worth £5,000 but the HP is owed £5,000 the OR won't be interested - if the HP is only £1,000 you will have to convince the OR that the car is essential.
There is nothing to stop your husband's employer buying the car, paying the finance and allowing your husband to use it, as long as his employer pays a fair price for it - but this may have tax implications on your husband's net earnings as the "company car" will be classed as a perk and your husband's tax would go up
Nowadays you are better to make an appointment at Court - it isn't a good idea just to turn up.
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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