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paulgm_2000
Starting Member
49 Posts |
 Posted - 29 July 2010 : 09:50:20
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Hi,
I am soon to petition for my own bankruptcy after the failure of two businesses over recent years.
I currently have a part time job which just covers my outgoings at the moment and thus I imagine i won't be subject to an IPA.
However, I am obviously applying for much better paid full time jobs at the moment which could leave me with a surplus. Should I have a large surplus per month is there a maximum limit per month I would be forced to pay?
Also is there an total amount i would be expected to pay over the three years? i.e. £5000? and would the IPA simply end after this?
Where does the money for the IPA go to?
Many thanks in advance to anyone who can help.
p.s. Is it worth sticking out my part time job during the time i'm bankrupt so I wont be subject to an IPA?
thanks
Paul |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 29 July 2010 : 11:08:24
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An IPA is worked out on a sliding scale according to how much disposable income you have. To have an IPA you must have £100 or more disposable income, and the amount you have to pay ranges from 50-70%. There is a table in my blog that gives a rough idea.
An IPA lasts for 36 months and can be varied up or down if your circumstances change so there isn't a set total amount.
The money from the IPA goes to pay the BR costs, and anything after that is distributed to your creditors.
Regarding your job, I wouldn't let the thought of having an IPA hold you back. It only lasts for 3 years, but if you can advance your career in that time I would say go for it as you might not get the opportunity again.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 30th June 2010 - it's over at last! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 29 July 2010 : 12:07:20
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Hi Paul
agree with Skippy
even if the OR takes 70% of your disposable income this will still leave some aditional money in your pocket.
but its not all about money go for promotion and the enhancement at work it may be mentally more full filling, it may frustrate you even more so you commit to part time and enjoy giving your time to the community
good Luck Richard |
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paulgm_2000
Starting Member
49 Posts |
Posted - 29 July 2010 : 12:08:07
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Hi, thanks for the response.
My issue is really that I have been in a Debt Management Plan then and IVA for the last three years and had hoped Bankruptcy would be a fresh start(as people keep telling me!).
I've paid a lot more back to my creditors than most people would of if I had chosen bankruptcy earlier so it is obviously disappointing to hear that I must continue payments after being made bankrupt.
I must admit I am wondering what the difference is between bankruptcy and an IVA are now!?
Hence, I am considering keeping a low paid job for the next year or so to avoid the IPA.
Thanks again for the advice. |
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paulgm_2000
Starting Member
49 Posts |
Posted - 29 July 2010 : 12:15:40
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Good point Richard! Many thanks. I do frustrate myself sometimes by focusing on money so much!
I guess I am just worried long term about what happens when we have kids(next year or two) and disposable income etc.
Thanks again for the advice! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 29 July 2010 : 12:30:24
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you can adjust the figure by speaking to the OR as your income goes up or down
what better time to be at home working part time and enjoying the first years of their life !
Richard |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 29 July 2010 : 12:52:50
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I had a pay cut at work last year and my IPA was reduced so it really isn't a problem. If your circumstances change either way just let them know.
It sounds corny but you need to look at the 'bigger picture' - it's not worth holding yourself back just so you don't have to pay an IPA.
Good luck whatever you decide x
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 30th June 2010 - it's over at last! |
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Worried Woman
New Member
United Kingdom
60 Posts |
Posted - 29 July 2010 : 19:28:14
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By how much does income need to change in order to need to inform the OR, for example if I earned an extra £40 or so in my pay packet one month would I need to inform the OR of this?
Went Br 20th July 2010...Just the OR to face now then countdown for 1 year...Or interview 30th July. |
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xmas baby
Average Member
537 Posts |
Posted - 30 July 2010 : 11:13:48
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Hi worried,
As far as I'm aware, you need to tell the OR of 'any' increase in income regardless of the amount. I may be they won't be interested in such a small amount, but you should inform them nevertheless. I was given a one off payment of £100 last christmas and I was hoping the RTLU would say I could keep the whole amount with it being christmas and just a one off payment. No such luck, they took 70% of it (£70). so much for being honest I thought.
xmas baby |
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Topic |
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IPA Maximum payment?
