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setmefree
Starting Member
United Kingdom
5 Posts |
 Posted - 27 October 2010 : 16:48:11
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| Hi I am thinking of becoming bankrupt will this affect my pension? I have a nhs 1. |
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debtinfo
forum expert
2826 Posts |
Posted - 27 October 2010 : 22:12:11
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| Unless the pension will pay out a lump sum during your bankruptcy then it will be unafected |
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setmefree
Starting Member
United Kingdom
5 Posts |
Posted - 28 October 2010 : 00:51:47
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Thank you I owe about 28'000 and I get £1750 per month. Problem I have left my bad relationship 18 months now debt getting out of hand. I have 2 kids in private school, I pay £1247 directly from my wages every month. Not much left to play with I don't pay all my creditors some get token £1.00 per month. I have not paid council tax for ages, so they go to my wages, and now water taking me to court to also go in my wages. :( I looked at DRO but that takes everything you owe, IVA, I don't commit to anything that long, and banrupcy, seem best choice. I would like to go into gov job in the future so that is putting me off. Not sure what to do...anyone can offer me any advice would love to hear from you. If you have been Bankrupt please let me have to negatives and positives. I really would like to own a house and a business one day. Thanks.quote:
Originally posted by debtinfo
Unless the pension will pay out a lump sum during your bankruptcy then it will be unafected
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Edited by - setmefree on 28 October 2010 01:13:54 |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 28 October 2010 : 10:01:52
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Hi,
The first observation, is the amount you are paying to have your kids privately educated, at £1,247 per month the OR(official receiver) would not see that as a neccessary domestic expense. The OR wouldn't tell you to stop it, he/she wouldn't allow you to claim it in your income and expenditure, when they assess you for an IPA(income payments agreement), so if you wanted your kids to continue in private education, someone else would have to fund it unfortunately.
As for obtaining a mortgage in the future, bankruptcy places restrictions on you for 12 months after the order is made, one of which is that you can apply for credit, but if it is over £500 you must tell the creditor that you are bankrupt. The bankruptcy will also appear on your credit file for 6 years after the date of the order.
But having said all that, bankruptcy frees you from your unsecured debts(apart from fines, some student loans, CSA debts etc), and even having restrictions and markers on your credit file, it isn't all that bad, but there are others on this forum who have gone through bankruptcy, so they should be able to advise you from a personal perspective, as I was an examiner with the insolvency service.
Big Al |
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setmefree
Starting Member
United Kingdom
5 Posts |
Posted - 29 October 2010 : 01:37:37
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| Thank you very much Big AL, very useful, but I don't understand someone else paying the fees. Lets say after the process I have income to pay the children fees are you saying I can not? after-rall I won't have the same amount of debts. I cannot breath now, but if after the process I am able to, is there something else I should spend my money on. I am confused????? :( Please sorry for being a bother but can you explain again thanks |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 29 October 2010 : 08:15:21
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Hi setmefree,
If you have any surplus over £100 at the end of the month after all your essential living costs, then you will need to pay a percentage of it to the OR, between 50-70%. This is called an income payment agreement.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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setmefree
Starting Member
United Kingdom
5 Posts |
Posted - 29 October 2010 : 09:17:45
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Thanks I think I need to sit and look at essentials again before I do anything.
P.King |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 29 October 2010 : 14:53:23
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Hi setmefree,
As you wouldn't be able to include the school fees as part of your essential domestic expenses, any surplus over £100 as Viki.W said would then be subject to an IPA. If then you had anything else left obviously it could go towards the school fees.
What I meant is that if you want your kids to continue at private school and you didn't have the means to pay, then you would have to consider a relative or friend paying the fees if they were willing(but remember in bankruptcy, as part of the restrictions for 12 months you can borrow but if it's over £500 the lender has to be informed that you are bankrupt), however having their kids in a private school was often one of the first things that had to go, with people who had gone bankrupt that I dealt with.
As regards an IPA, if you do have one then you would have to pay into it for 36 months.
Big Al |
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setmefree
Starting Member
United Kingdom
5 Posts |
Posted - 01 November 2010 : 12:19:48
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Thank you
P.King |
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Topic |
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Will bankruptcy affect my pension ?
