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lush
Starting Member
United Kingdom
4 Posts |
 Posted - 01 January 2011 : 14:42:37
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Hi all, havent posted for a while have been reading through posts to try and find one that resembles my situation but can't find one as yet. I went BR on 4th August 2010, at my interview I was told i would not have to pay an IPA as my excess was below £100, but would have to pay an IPA via a nil tax code. I have been paying for 3 months and believe it ends in April (end of tax year). But what happens then? will I have to do another income and expenditure? or is that it until my BR ends?
kind regards
julie |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 01 January 2011 : 14:46:24
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Hi Lush,
My understanding is that everyone will receive a new I&E to complete prior to automatic discharge, but maybe Debtinfo or BigAl could confirm that.
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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removingtheshackles
Starting Member
9 Posts |
Posted - 02 January 2011 : 10:57:52
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| Hi Lush, this is also my understanding that your income and expenditure will be assessed prior to automatic discharge. If your IPA is purely based on your NT tax code then this ends when your NT tax code ends as well. If after re-assessing your income and expenditure your situation remains unchanged and you still do not have sufficient disposable income to pay into an IPA, then you will not be asked to sign a new IPA. The only thing I am not sure about is whether you still have to inform the OR if your income increases within the 3 years of your bankruptcy. Perhaps someone else could clarify this? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 02 January 2011 : 11:06:49
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If you never signed an IPA and your circumstances before AD are the same, then as soon as you are discharged, you don't need to tell anyone about any income changes. You are free to earn what you want.
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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carl
Junior Member
115 Posts |
Posted - 04 January 2011 : 10:11:18
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Hello and Happy New Year to you all!!
Can I just ask a quick question regarding this?
I went BR on 28th August 2010, at my interview I was also told I would not have to pay an IPA as my excess was below £100 ( i was never actually told what my DI figure was during or after my interview), but would have to pay an IPA via a nil tax code. I have also now been paying for 3 months and I was under the impression that come April 2011 (end of tax year) that was the end of the IPA.
When my circumstances are reviewed by the OR and I have to complete a new Income and Expenditure form will this be assessed under the new rules which may mean I could then be liable for an second IPA for 36months?
My income and expenditure hasn't really changed although a few of my household bills have increased £5.00 to £10.00 per month like car/house insurance (just because of renewal prices during my BR) and my renewal mobile phone contract has increased slightly as well. Petrol has also gone up quite a bit this last few months as well and I am definately using more than the £20 per week I budgeted for in my original income and expenditure.
I am alittle worried because after my interview and in my original I&E I have continued to keep things like my telephone BT landline, mobile phone, home internet, and mortgage protection insurance and I'm guessing it was because my DI was below £100 limit.
Under these new rules would the OR be allowed to say that they are no longer allowing you to claim for certain expenses which means you have an higher DI which means you can then be subject to an IPA under the new rules?
Hope that makes sense.
Thank you
Carl |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 04 January 2011 : 13:05:32
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Hi Carl,
under the new rules you will probably get another I&E form to complete prior to ED(an IPOQ, and whereas before you didn't unless it was an ED case). With regards to expenditure, you can claim the same expenses as when you were interviewed, but by the sounds of it, your expenditure may be higher due to increased premiums, fuel costs etc. Just because the IS is looking to increase fee income, doesn't mean that they can exclude expenditure allowed in August 2010.
Also as Viki said, once discharged you have no obligation to tell the OR anything about I&E, as you would no longer be able to be assessed for an IPA.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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carl
Junior Member
115 Posts |
Posted - 04 January 2011 : 13:47:48
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Hi BigAl
Thank you once again and Happy New Year to you!
You have put my mind at ease now slightly. I am not trying to avoid an IPA at all and I am nothing but grateful to the Local County Court and the IS for helping me face up and resolve my debt problems.
Generally my expenses are the same as they were but general living expenses do seem to be going up slightly so I presume that when the OR contacts me to obtain my latest I&E things will have changed.
I had hoped that the BT landline, internet and mobile phone would slowly help to improve my Credit profile after BR so in the future I maybe able to re mortgage my house to a more favourable rate etc (definitely no more credit cards for me!!)
I was more worried that they might change the allowances by not allowing something they had previously allowed then I would be left with problems trying to cancel my mobile phone contract, internet when I’m tied in to a contract with them.
Thank you
Carl
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 05 January 2011 : 12:58:16
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Hi Carl and happy new year as well!
glad to be of help, hope all goes well for you!
Anything else, you know where to find the answer from someone on the forum.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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removingtheshackles
Starting Member
9 Posts |
Posted - 05 January 2011 : 14:03:36
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I was under the impression that if the date of the bankruptcy predates the changes implemented in December 2010 then the bankrupt is still subject to the 'old' rules when calculating an IPA i.e. must have DI >£100 & then pay a percentage of their DI. Can anyone please clarify this as I'm looking to have my IPA varied due to a reduction in income. I don't want to shoot myself in the foot.
Thanks very much. |
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removingtheshackles
Starting Member
9 Posts |
Posted - 05 January 2011 : 14:50:13
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| Please ignore my reply (above). Having read the thread on the new rules it would appear that the assessment using old or new rules is dependant on the date the IPA was signed so I *should* be ok. |
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nil tax code IPA
