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Leezus
Starting Member
6 Posts |
 Posted - 22 November 2010 : 22:11:38
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| Sure. Of course it was my intention to pay them back, but as with many people in the position of having to research BR and IVA, things happened, things went wrong, and I lost control. I got into a state of denial, basically hid from the problem and now I want to draw a line under it and hopefully look to the future. I am not doing it because I don't like the banks making a profit or the fat cat bonuses, i'm just saying that a person's debts to an organisation are probably just change down the sofa to them, so people shouldn't over commit to something like an IVA if it's likely to be an unstable option (due to redundancy fears, which I'm sure many of us have in these uncertain times) just because they feel morally obliged. If I had confidence in maintaining my income and remaining in my job for the next 5 years, then I'd certainly be looking at an IVA, but I'm not confident, and to take on an IVA only to fail 3 years in and have to go BR anyway just doesn't seem to make sense when I have nothing to lose asset-wise. It just seems right for me that's all. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 24 November 2010 : 14:06:07
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Before I left the IS in July they were toying with the idea of obtaining IPA/O's for any DI less than £100.
The reason is that they are not getting fee income from people who have equity in their properties, thus they were looking for other ways of obtaining income.
Plus, fromanother post about IPA's for £0,as far as I know they would never put in place an agreement for nothing, but this way, even if it's £20, they then have you locked in incase your income increases. Desperate times for the IS!!
Big Al |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 24 November 2010 : 15:16:05
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Hi Big Al
yep desperate times for IS / OR
Like all Govt Bodies they have been told to create income and reduce overheads, no holds barred !
Richard |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 27 November 2010 : 23:58:15
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I am strongly against the new changes in the IPO/ IPA procedures.
The new £20 IPA will mean that ANY monthly difficulty will guarantee hardship for almost everyone in Bankruptcy.
For example if you need a car repait, boiler repair, etc you will not have the disposable income to pay for the problem which means the knock on effect will be a disaster.
These measures are clearly an attempt to try to increase revenue for the Insolvency Service, who have been badly hit by the revenue from Bankruptcies since the fall in house prices.
The cost for managing the IPA's will be massive if everyone with a monthly financial stretch calls their OR each and every month with a request for a modification to the IPA because of an exceptional event.
The 2002 Insolvency Act was re written to allow people to press the Restart Button, and not have years of financial misery. After all that is why people decide to petition for Br in the first place.
Good idea for revenue generation made by an accountant, but not really practical in this ever changing world.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Paul 50
Starting Member
United Kingdom
28 Posts |
Posted - 28 November 2010 : 10:47:10
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| Will the new December ruling affect existing IPA in any way, as in being reassessed. I am half way through mine at the moment. |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 28 November 2010 : 11:03:32
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Hi all
It would appear that the IS is trying to soften the blow as I am led to believe that they will allow an additional expenditure of £10 per month per person living in the household to cover sundries/emergencies
John Blackadder |
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Jane.l
Average Member
511 Posts |
Posted - 28 November 2010 : 11:55:16
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Just to chuck my tuppence worth in, but what about families with children, ie. Christmas and birthdays? I feel this is very unfair, after all, why punish the children for the parent's mistakes? surely they cannot be expected to come down on Christmas morning and have no presents? that is just heartbreaking
We went bankrupt 3 years ago, I am so glad now that we did it then. We had £20 surplus, the OR tried to push for a £50 IPA by disallowing certain things and cutting the food budget, but we stuck to our guns and contested it, there was no way, with 3 children, we could have survived with an IPA of any amount, there are other things to think of too: what about replacing household goods, washing machines, fridge, soft furnishings, TV? If you own your home, there are maintenance costs to consider. Will these expenses be allowed on the SOA?
Maybe I am just cynical and this is just a way to recoup costs of bankruptcies but I just cannot see how it will work practically. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 28 November 2010 : 12:19:02
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quote:
Originally posted by Paul 50
Will the new December ruling affect existing IPA in any way, as in being reassessed. I am half way through mine at the moment.
No, it will only affect people who declare BR from 1st Dec 2010 onwards. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 28 November 2010 : 12:23:48
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quote:
Originally posted by Jane.l
Just to chuck my tuppence worth in, but what about families with children, ie. Christmas and birthdays? I feel this is very unfair, after all, why punish the children for the parent's mistakes? surely they cannot be expected to come down on Christmas morning and have no presents? that is just heartbreaking
I presume the allowances will be changed to the way they are in an IVA i.e. a monthly allowance for Xmas/Birthday presents, social, etc.
It all seems to be up in the air at the moment and it looks like it has been rushed through.
The people I feel sorry for are those that were advised over the last couple of weeks to declare BR based on the current IPA rules of 50%-70% DI and will turn up at court after 1st Dec to find the rules have completely changed. It would have made much more sense to implement the rules from 1st Jan 2011 and then inform the CAB, CCCS, National Debtline, IPs, etc. of the rule changes so they could correctly inform people who were considering BR. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 28 November 2010 : 12:35:48
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With regard to the frenzy of the proposed not happened yet change in the Insolvency service approach to the IPA s the following needs to be considered,
An IPA has only been around since 2004, it need the agreement of the debtor tobecome an IPA, the Insolvency service can tighten whatever they like unless a debtor agrees to it it will never become an IPA.
Now the rule here is simple if a bankrupt has excess income over and above what is required to meet his and his families domestic needs then the court will decide if he has to pay into his estate for a period of three years. The 50 to 70% was only ever a guide introduced by the Insolvency service for an IPA agreement which the bankrupt has to sign and accept normally in 14 days.
If the Insolvency service wish to tighten its grip on bankrupts income in December then bankrupt can roll over and accept this or bankrupts can choose not to accept this and allow the court to rule on an IPO, courts in the past have always favoured the debtor in my expierience.
When the court has ruled upon this, (and I bet its far more generous that income over £20 to be allowed(, and the circumstances change where payments become difficult say through job loss or change of circumstances the debtor only has to fix a court hearing give the trustee 28 days notice of the hearing to have the payments order varied or terminated by order of the court.
So its simple banrupts can roll over and accept Insolvency Services new regime of taking all bankruptcts excess money over £20 or they can eventually clog up the court system as a protest, I know what my clients wil be doing.
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Edited by - Daniel Griffiths on 28 November 2010 12:38:30 |
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tricer
Starting Member
United Kingdom
43 Posts |
Posted - 28 November 2010 : 15:07:54
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| Hi me and husband are at court tomorrow to petition our bankruptcy. Will this new IPA rule apply to us? Im confused as to whether it will apply to people who are actually made bankrupt after the 1st or whether it will apply if OR interview is after the 1st which ours probably will be. Very nervous and worried about tomorrow |
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debtinfo
forum expert
2826 Posts |
Posted - 28 November 2010 : 15:15:23
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| It seems that it will apply if the IPA is signed after 1 Dec |
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Angie
New Member
United Kingdom
81 Posts |
Posted - 29 November 2010 : 18:06:56
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With VAT increasing in 2011 which will affect everything from gas bills to food, I suppose this is another turn of the screw from David Cameron. I knew as soon as he came into power I would loose my job and low and behold 5 months later I am now out of work again. And next this horrible bombshell for all these people thinking about going bankrupt.
I agree with your post 100% Daniel GRIFFITHS. |
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adogillo
Starting Member
United Kingdom
25 Posts |
Posted - 30 November 2010 : 11:06:43
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| Hi my wife and i were declared BR on the 8 Nov 10, we had our interview yesterday with the OR but nothing will be decided until Jan 11 as my job is very much in doubt, will we come under the new ruling regarding IPA's?? |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 30 November 2010 : 15:38:43
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Hi Adogillo
Yes! However if your job is in doubt, this whole thing about IPA's may be academic as I am assuming that without a job, you may not have any disposable income.
All the best.
John Blackadder |
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NEWS ABOUT IPA`s
