| T O P I C R E V I E W |
| dazed and confused |
Posted - 09 September 2008 : 19:43:24
Dear Forum
I have just had a very scary thought - I recently signed up to an offer which we had on at work where Employees could get a bike at a reduced price and pay monthly over a period of 18 months. Basically, the way it works is that the Employer buys the bike, claims the tax back on it, and then 'loans' it to the Employee over a period of 18 months tax and NI free which comes directly out of my wages.
When I took out this agreement, I think it was in June / July 2008, going BR was not on my mind - in fact I was just about to enter into an IVA and the IP said it would be fine for me to go ahead with it. I was later talked out of an IVA due to my inability to be able to financially commit to it for 5 years.
Anyway, to cut a long story short, my 3 questions are:
1. Would my Employer now be classed as one of my Creditors if I waa to go BR?
2. Would I get into trouble with the OR for taking out this Agreement i.e. would it be seen as taking on additional credit?
3. Would payments for the bike be seen as 'preferrential treatment'?
I hope someone may be able to help me on this...
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| 15 L A T E S T R E P L I E S (Newest First) |
| dazed and confused |
Posted - 15 September 2008 : 12:37:08
Hi Julian
The problem I have though is that I have already entered into the rental agreement for the bike. It was arranged back in July. At that point I was thinking of possibly going into an IVA or a DMP which is what I am in now (DMP).
Could you explain further what you mean by best to quite while I am ahead please?
I think I really need to talk to someone again about my whole situation. Would this be possible please?
Thanks |
| JulianDonnelly |
Posted - 15 September 2008 : 12:27:56
Hi D&C,
Although it may seem like a good deal, knowing you're going BR would mean it's a very bad idea. The OR will smell a rat and you run the risk of them investigating further. Best to quit while you're ahead.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| dazed and confused |
Posted - 15 September 2008 : 11:20:17
Hi Julian
Yes I was kind of worried about that too.
Technically, it wouldn't be mine though as the rental agreement is over a period of 18 months so the bike would not be officially mine until around March 2010.
So I am guessing that they would not be able to touch it?
I am not saying this because I don't want the OR to take it, I am just really worried about what my work would say. |
| JulianDonnelly |
Posted - 15 September 2008 : 05:02:51
Hi D&C,
If this payment is being made by a 3rd party, the OR won't have an issue. However, note you will have just acquired a brand-new £500 asset the OR may take an interest in.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| dazed and confused |
Posted - 14 September 2008 : 19:57:03
I have a double problem with my bike situation as I also intend on going out to Canada for a year in January to be with my partner and hopefully get work, but I think I may have a sloution for my bike problem.
I spoke to the Finance section at my work and they ahve said that I will need to either pay for the 12 months that I am away from work out of my wages over the next 3 months, or alternatively offer them a lump sum out of my final salary before I go on the year Career Break.
Obviously, the OR would not approve of me giving a lump sum for a bike but my sister has very kindly offered to pay for it - would this be ok with the OR? |
| dazed and confused |
Posted - 10 September 2008 : 14:51:38
So I guess it would need to be put down as a monthly outgoing in the Expenditure section? |
| John |
Posted - 10 September 2008 : 14:42:21
Hi
it's a rental much the same as a TV.
There is nowhere on the SoA to enter the fact that you have a rented TV - although one per household is allowed in respect of expenditure.
So it does not need entering anywhere.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| dazed and confused |
Posted - 10 September 2008 : 14:19:38
Hi!
So on the BR forms, would the bike come under an Asset or would the rental cost be counted as an Expenditure???!!!
Would it even need declaring as the money is deducted directly from my wages, like my Pension Scheme is?
Would the OR allow payments to continue to be made into the Scheme once BR, or if not would the OR allow a final lump sum payment to be made, which would then make you the owner of the bike and it would become an asset???!!!
Very confusing... |
| John |
Posted - 10 September 2008 : 13:38:45
Hi
I'm not sure what you mean.
Now that we have established the bike is rented to you then BR legislation dictates that it's ok.
If the examiner questions it stand your ground as it really is perfectly ok. The OR cannot dictate what you do with your share of your DI whether you have an IPA or not.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| grantspants |
Posted - 10 September 2008 : 13:27:02
Thanks John
Although on my current SOA I have little or no D.I so my wife would maybe cover it for me.
hmmm, is there any way of finding out for definite if it's ok? |
| John |
Posted - 10 September 2008 : 12:46:51
Hi
there would be nothing wrong with already being in, or entering into, this scheme now that we know that the bike is rented to you by your employer.
However, don't expect the OR to allow the monthly payment against expenditure, this will have to come from your share of your disposable income. |
| grantspants |
Posted - 10 September 2008 : 12:39:21
whst do you think John?
Is this a bad idea? |
| grantspants |
Posted - 10 September 2008 : 12:22:13
Hi John,
I think for a bike worth £600 the rental payment is £27.23 and total cost works out at around £354, thats if I have read the literature correctly. I have a copy of the agreement and payment/savings table that I can email you if you want?
Thanks
p.s I called the hotline and left a msg, but if you think we can chat via the forum then thats ok.
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| pix1 |
Posted - 10 September 2008 : 11:51:20
I am not sure if you have already gone BR. I think the key thing here is that you need to check the T&C's of your employment to see if going BR will be a problem. I am seriously worried that a local authority might terminate your employment if you are BR but I don't know for sure. If you can delay perhaps it would be better to put off the Br for a few weeks while you check all this. Maybe BR is not the right option if you want to keep your job. I don't want to be alarmist. I am just a bit concerned for you. |
| John |
Posted - 10 September 2008 : 11:02:15
Hi
how much is the rental payment per month?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
