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NoMoney
Starting Member
14 Posts |
 Posted - 26 January 2010 : 16:45:34
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Hello Forum,
Are you allowed so save money while you are bankrupt? Let's say saving money if you want to visit relatives abroad, or taking the kids for a holiday?
Thanks for any advice.
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 26 January 2010 : 16:56:21
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You are not really supposed to save money whilst bankrupt. However, if you have a family, the Official Receiver would allow you roughly £80 per month for a holiday. This would be a legitimate expense on your Income and Expenditure form.
All the best
John Blackadder |
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NoMoney
Starting Member
14 Posts |
Posted - 26 January 2010 : 17:24:17
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Hi John,
Is that the same as after you are discharged and still finishing an IPA?
Thanks.
quote:
Originally posted by Blackie
You are not really supposed to save money whilst bankrupt. However, if you have a family, the Official Receiver would allow you roughly £80 per month for a holiday. This would be a legitimate expense on your Income and Expenditure form.
All the best
John Blackadder
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 26 January 2010 : 17:54:48
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| No. Once you are discharged from bankruptcy, unless you have a Bankruptcy Restrictions Order, you are not answerable to the Oficial Receiver so you can earn and save as much as you wish without having to disclose the fact to the Insolvency Service. Your IPA will carry on for 36 months regardless, unless, god forbid, you lose your job and cannot afford to pay it. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 26 January 2010 : 18:01:44
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John - I am not sure why you wouldn't think people couldn't save money when BR. Even if you pay an IPA you only pay between 50% and 70% so what are you supposed to do with the remaining amount?
NoMoney - There is no problem in saving money when you are BR either before you are discharged or post discharge if you are still paying an IPA.
If you have less than £100 DI you will not pay an IPA and you can do what you like with any money that is left over after your expenses. The same goes for people who pay an IPA. The IPA will be between 50% and 70% of your DI. What you do with the rest is entirely up to you.
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debtinfo
forum expert
2826 Posts |
Posted - 26 January 2010 : 19:44:11
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| The OR can take money saved during bankruptcy as an after aquired asset BUT this is really only for very large sums of money and is rarely used |
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Are you allowed to save money?
