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gjm68
Starting Member
18 Posts |
 Posted - 12 November 2010 : 18:05:39
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I am currently off work with mental health reasons. As part of my recovery I was advised to take bankruptcy to clear the debts that grew as a result of the illness. The debts hindered my recovery.
Part of me says that going back to work will help my health. I know that working while bankrupt will mean I have to pay an IPA for 3 years. I need to draw a line under this part of my life and start to get better. I know that I could be discharged after about 7 months.
If I stay off work I could be able to close this unfortunate chapter of my life in less than a year. If I take an IPA I won’t be able to do this for 3 years. As these debts have contributed to my illness I don’t think I can get better until the chapter is closed.
Can anyone please help? Is there a way of getting the time of the IPA reduced? I can’t risk getting ill again and undoing the hard work I have done over the last year (now almost ready to go back to work after a breakdown). I need to fully draw a line under this as soon as possible.
Will the Official Receivers show any consideration and understanding to my health situation? Is it worth talking to the Receivers or just sit and wait to be discharged?
Many thanks |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 November 2010 : 19:12:30
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Hi and welcome to the forum.
First of all, working whilst BR doesn't necessarily mean an IPA. You will only get an IPA if you have £100 or more disposable income per month.
Also, although you may be discharged early, it's best to think that you will be BR for 12 months and look on ED as a bonus.
I don't think there is any way of getting the term of an IPA reduced, but believe me it's no way near as bad as being in debt! Unlike debt repayments the IPA can be varied (up or down) depending on any changes in circumstances.
One of the experts who posts on here, Bigal, was an examiner until fairly recently and hopefully he will be able to answer this from an examiner's point of view. You can also contact any of the professional experts who post on here - their contact details are in the experts' section at the side of the page.
Good luck, and please keep posting as there is always someone around for advice or moral support.
View my blog at http://skippy13.blogs.iva.co.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 28th June 2010 - it's over at last! |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 12 November 2010 : 19:14:37
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There are no easy answers to your questions except for the one regarding the length of the IPA. The only way that this can be reduced from 36 months is if you pay off your BR debts before the IPA ends.
You will only receive an IPA if your DI (Disposable Income) is less than £100 each month. If it is more than you will pay an IPA but if your income drops below £100 during the 36 month IPA period then your IPA will stop for that period as well.
An IPA is taken after DI so after you have paid your bills, rent, food, clothes, etc. so it is not as strict as it may seem.
Whether you think the best thing is to wait until you have been discharged before returning to work in order that you don't get an IPA is really up to you.
The rules are the way they are (i.e. an IPA cannot be implemented after discharge) so if you want to wait until discharge before returning to work in order to avoid an IPA then there is nothing the OR can do about this except to not apply for an Early Discharge and allow your BR to run the full 12 months for an Automatic Discharge. This is sometimes the case when ORs or creditors believe there is a chance of someone being eligible for an IPA before the full BR period (12 months) has been completed. |
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going back to work
