| T O P I C R E V I E W |
| findingzoe |
Posted - 10 March 2009 : 08:49:36
Morning
I've been determined to avoid paying anything into a plan when I go BR. I've worked out my E at about £770 and planned to reduce my hours to make sure I didn't earn much over that. Then I remembered something about my tax code changing, which could scupper me entirely.
My salary is £14967 plus commission, which I intend to fail to earn for my own purposes. Can anyone give me an indication of what my deductions should change to? I've put in a request to change my hours to 26.5 a week but realise now this may not be low enough.
Thanks |
| 15 L A T E S T R E P L I E S (Newest First) |
| admin |
Posted - 11 March 2009 : 13:21:21
Thank you for an interesting discussion from various moral viewpoints. This thread is now closed.
admin |
| Skippy |
Posted - 11 March 2009 : 10:02:14
If someone is determined to avoid an IPA that's their decision, but I don't feel the forum should encourage this in any way by providing information about the best way to do it.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
| leahk |
Posted - 11 March 2009 : 09:16:40
Well said John!
x |
| John |
Posted - 11 March 2009 : 08:44:04
Hi
clearly the way we each look at this issue is from a personal moral viewpoint. There are those that feel they will do everything and all that they can to repay as much as possible and that is their moral and civil right.
Likewise some will manipulate their circumstance albeit within the law to do all they can to avoid repayment and this is their moral and civil right too.
The morals by which we each live are a matter for the individual and a matter for our own conscience.
If I may I would like to point out, no criticism of anyone intended here and I do accept that this is, after all, a forum and by definition we all air our own views, that we are none of us here to judge but to answer the questions posted and give advice as to what can be expected through the bankruptcy process.
And on that note the fact is that none of us can be forced to work.
John White
England Jackman & Spacey |
| givemestrength |
Posted - 11 March 2009 : 08:13:36
hi, i dont think we will get an IPA but in a way i wish i had something left to pay back to the creditors it would make me feel a lot better. and i will never as long as i live want to go through this again. |
| Skippy |
Posted - 10 March 2009 : 20:06:23
I don't think anyone is suggesting that someone should 'bend over backwards' to pay into an IPA they cannot afford. Maybe the banks shouldn't have lent some of the money, but no-one was forced to spend it. Surely if you borrowed the money in good faith then you have a duty to try and pay some of it back.
I also don't understand why an IPA should act as a disincentive to earn more, and possibly better yourself. It's not as if you pay all your surplus income is paid into an IPA, so why put your life on hold for 3 years?
This is not aimed at anyone who cannot afford to pay into an IPA.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
| Jane.l |
Posted - 10 March 2009 : 17:34:00
"If you don't pay anything, its far too simple. People are just going to do it again and again."
I have to completely disagree with this statement. I had no IPA, but there is no way in the world I will apply for credit again. It does not mean I will do it again and again. The past 2 years have been the worst of my life. I have lost my house, car, I had a crap job just to work more hours to try and pay the debt off, fallen out with my family
Just because I am not paying anything back does not mean this nightmare has not affected me, I am still on tablets from drs, (trying to come off them now) but I am still very upset and nervous about this debt.
It has been a hard lesson learned. |
| pix1 |
Posted - 10 March 2009 : 17:23:29
Yes we have responsibilities for our debts, however, a lot of our probelms are down to the ready availability of credit proveded by greedy money-making lenders preying on vulnerable customers! I know my wife once went into a bank to pay £10 into her account and came up with a personal loan she was not ven thinking of taking out! I'd say it is partly one's own fault and partly a problem with the finance system. A correction is going on in the markets right now. These lenders get insurances to cover against losses. We should not be fallijng over backwards to get stuck in IPA's which act as a disincentive to start earning more for 3 years and thereby possibly paying more in taxes, thus stimulating the economy! Avoiding an IPA is similar to avoiding a BRO or avoiding losing a property by not getting someone to buy out a BI. Or wanting an ED. |
| findingzoe |
Posted - 10 March 2009 : 15:38:08
My reasons for choosing to go part-time are valid, just, and motivated by many factors which I have chosen not to disclose.
The difference in my tax code could, potentially, tip me over the edge of paying into an IPA. I am talking the difference here between being JUST over or JUST under the threshold. So, yes, of course I'm trying to avoid one on that basis.
|
| maizie |
Posted - 10 March 2009 : 14:48:10
I'm with Skippy on this one. The majority of us got into this situation because we made mistakes, silly mistakes that basically were our own fault. We all had our head buried in the sand at some point. Why shouldn't we pay something back if we can. I pay back something each month and by god it has trained me so much that I would never go back to getting credit or in debt again. If you don't pay anything, its far too simple. People are just going to do it again and again.
Maizie |
| Skippy |
Posted - 10 March 2009 : 14:37:34
If you go BR now you won't get a NT IPA.
I don't think that encouraging someone to avoid paying an IPA should be posted on the forum. Going BR is not about avoiding paying anything back. As so much is being written off then surely paying something back for 3 years isn't so bad?
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
| pix1 |
Posted - 10 March 2009 : 13:53:11
Firstly, please see the following links which pertain to ipo's;
Income Payments Agreements and Income Payments Orders;
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/Introduction.htm http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part7/part_7.htm (see link to Household Expenditure Spreadsheet)
If you have not gone bankrupt as yet you could try holding on until mid March to make sure you don't get a nil tax code ipa. Even if you did get one it would only be for the rest of the tax year in which you go br.
As to avoiding a 3 year ipa/ipo you need to have no more that about £80 disposable income or you could lose half of the disposable in an ipa/ipo. See links, especially for household expenditure spreadsheet.
Ideally you should go part-time before petitioning br. if you go part-time after petitioning br it would be a good idea to make sure you notify the OR straight away before they set up any ipa/ipo. One reason why you might go part-time is that oyu are naturally under a lot of stress and can't take a 40 hour week. You might even want to give up your job and go unemployed, though youmight not get another job later! |
| Skippy |
Posted - 10 March 2009 : 11:37:51
I agree with Maizie. Your I & E should be honest, and what's the point of making sure you earn less - surely you'll end up worse off in the long run as you don't pay all your surplus into an IPA.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
21 IPA payments made, 15 to go - on the home straight! |
| Melanie.n |
Posted - 10 March 2009 : 09:57:59
It all depends on when you go bankrupt - if you go bankrupt in Feb or March you do not go on the NT tax coding as there is not enough time to set it up for the remainder of the tax year in which you go bankrupt (as April is a new tax year!) this is why Feb and March are the busiest months, by going bankrupt Feb/March employers never get to know!
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
|
| maizie |
Posted - 10 March 2009 : 09:22:22
Hi findingzoe
Are you actually reducing your hours because you want to avoid paying into your bankruptcy?
All your expenditure should be honest as you may be asked to provide evidence. Bankruptcy shouldn't be about not paying anything, to me it's about paying what you honestly can.
Sorry if I have offended anyone here, it wasn't my intention but I don't agree with you reducing your hours so you don't pay anything!
Maizie |
