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| T O P I C R E V I E W |
| stanton |
Posted - 09 March 2009 : 21:33:12
Hello. First off, sincere thanks for this site - it's proving to be a lifeline at an extremely difficult time.
My wife went bankrupt last month after years of us trying to get control of our money worries, leaving me now with no other option than to do the same once I can get the money together. I should add that we separated (informally) over a year ago and have a two year old daughter, who lives with my wife. Due to progressive ill health I'm not working at the moment but hope to secure a job again soon as my medication's been adjusted and I'm feeling more able (the stress of our debt certainly didn't help in this respect). After discussions with the OR's representative it looks like my wife will have an IPA of 50%, leaving her with just over £120 pcm. I've a few questions in respect to this:
Firstly, what is the likelihood that my wife's IPA will run the full three years? She's been told that early discharge will be recommended.
Secondly, when I'm working I'm hoping to pay regular child support of around £350-400 pcm as part of my expenditure: will the OR allow this both as an expenditure before my surplus income is calculated and/or the amount, or might they/can they insist on a smaller amount? And will this money then count towards my wife's income and increase her IPA to 70% (is 70% the maximum in any case?)
Due to my health I don't expect to be able to work full time in 3-5 years so I'm desperately hoping that my wife might be able to save £50 a month or so from what income she has left after everything's paid out to save towards our daughter's future. I already feel like a complete failure and the thought that I might effectively lose any opportunity I have left to help contribute to my daughter having a positive future is truly awful.
Any help very gratefully appreciated. Thank you. |
| 4 L A T E S T R E P L I E S (Newest First) |
| stanton |
Posted - 10 March 2009 : 11:58:51
Cheers, John. |
| John |
Posted - 10 March 2009 : 08:34:17
Hi
yes, irrespective of whether or not there has been a court ruling on maintenance the OR will allow an informal payment equal to CSA rules, therefore in your case the £255 would apply.
Your wife's friend's IPA would not have been affected by her discharge date.
It could have been that her I&E changed at the time of discharge which meant her DI reduced below the necessary threshold for an IPA (£99)at the same time she was discharged.
Or the friend was not in an I&E based IPA but rather an NT tax code IPA. An NT tax code IPA ends in 2 ways. If you change your job or at the end of the tax year during which she was made bankrupt, whichever happens first.
The friends discharge and the ending of either type of IPA has to have been coincidental.
John White
England Jackman & Spacey |
| stanton |
Posted - 09 March 2009 : 23:17:32
Hi John
sincere thanks for your advice - that's helped me arrange my thoughts a bit better. There's no CSA or court ruling involved; will my contribution (which will be £255 if 15%) still be allowed by the OR?
Also, regarding the duration of my wife's and my IPA - three years feels like an awfully long time stretching into the distance but I suppose it'll pass soon enough. Has three years always been the case, though, barring any significant changes to personal circumstances? A friend of my wife went BR around a year ago while in paid employment and no children, was discharged after six months and her IPA ended thereafter, despite there being no changes in her situation. How does this work?
Again, thanks very much for your reply. My impending BR is coming after several years' worth of difficulty - including significant ill health, several bereavements, several cycles of IVF treatment (which had to be paid for on credit card so a major contributor to our debt problems, but we've a fantastic little girl so well, well worth it) and more latterly marital breakdown - so it's doubly hard. But coming across this site and reading the stories of others who have been in exactly the same position yet reached the other end in far better shape gives me hope. Fingers crossed that once the BR goes through and I can actually dare pick up the phone again or open my post my health should stabilise. |
| John |
Posted - 09 March 2009 : 22:35:45
Hi
as long as your wife's income and expenditure remain the same each month the IPA will last the full term of 3 years. Once the IPA is in place her discharge date has no effect on it.
In your bankruptcy the OR will only allow an expenditure against maintenance payments in line with CSA rules. For one child that equals 15% of your net income. Yes the future maintenance payments will increase your wife's disposable income figure and she is legally obliged to disclose this to the OR who will increase her IPA payment accordingly.
Ay present your wife has £120 per month left after the IPA payments are made. If your net income in the future were to be £2000 per month your maintenance payment, as allowed by the OR, would be £300 which means her total DI would be £540. Her IPA would thus increase to 70% leaving her £150 from which any savings for your child's future would have to be made.
However, your wifes full DI will be restored to her benefit after the 3 year IPA ceases so hopefully it should not take too long for her to make up for lost time in respect of setting monies aside for your daughter. Additionally once your own IPA finishes soon afterwards you are in a position to make a larger maintenance payment.
John White
England Jackman & Spacey |
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