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fixie
Starting Member
27 Posts |
 Posted - 05 January 2011 : 01:32:02
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I am at the point of applying for BR in the next few weeks, however, I have a couple of loans taken with my employer ( local government ) should/could I satisfy those loans before applying for BR ?
How would this be viewed ?
Can it cause loss of job, therefore making an already bad situation infinitely worse.
We have no equity or rather negative equity in our home and have changed our mortgage so that it is interest only in order to manage to live.
Also I can work overtime but this is not guaranteed, what happens to overtime? It is on a voluntary basis but is likely to be removed.
I am feeling that the noose is tightening round my neck and there is no way out, can someone shine a positive light ?
Many thanks for reading and I hope there is some hope. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 05 January 2011 : 07:15:19
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If you pay off one creditor over another it will be viewed as favouritism by the OR and will be frowned upon as they expect all creditors to be paid equally. The OR also has the power to recover the amount paid to this creditor and then share it between all of your creditors.
Whether BR can lose you your job will depend upon the contract. Some professions (i.e. finance) do not allow people who are BR to practice but there is no list of the professions that don't allow someone BR to work with them. You could also make an anonymous call to your HR Team asking them if there is a problem with being BR.
There is no problem in working OT but while you are BR the OR is likely to take most/all of the money. After you have been discharged you will still have to declare the OT if you have an IPA (Income Payment Agreement) but without an IPA you are free to keep any additional income without declaring it. |
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carl
Junior Member
115 Posts |
Posted - 05 January 2011 : 09:12:34
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Hello Fixie
I am in a similar position to you, I declared BR in August 2010 and I also work for a Local Authority. If you search my many posts on this forum I also asked the question about working for Local Government and declaring yourself BR. One of the experts ‘BigAl’ came back to me with the following information :-
Local Government Act 1972, s. 80(1)(b):
“Subject to the provisions of section 81 below, a person shall be
disqualified for being elected or being a member of a local authority,
and be disqualified for being or being elected mayor, if he … (b) is the
subject of a bankruptcy restrictions order or interim order…”13
It didn’t mention my job as enforcement officer, so BigAl couldn’t see how BR could affect my job. After this I checked my employment contract and job description and there was no mention that being BR would affect my position with the Authority that I work for. I also made an ‘anonymous’ phone call to our HR department and I was told that I should really approach my manager to inform them of the situation because the Authority maybe able to help in somehow. The HR adviser also told me that the job application form with the Authority doesn’t ask you to declare if you are BR either so you could obviously apply for a job with the Authority being BR anyway. I decided against telling my manager but I have kept a list of dates and names of the people who I spoke to just in case there is a problem in the future. My nil tax code has been input by the payroll roll Department and as far as I am aware no one knows about my BR.
The other issue you will have to take into consideration before declaring BR is the cut backs that will be happening within Local Government this next few months and any possible redundancy payments you may receive if you are made redundant. Do you know how safe your Job is at present? Do you think it will be safe for 12months after you declare BR because you will lose some of the redundancy payment into your BR. I will be getting my 90days notice in the next few weeks while the Authority goes through a service remodelling and basically gets rid of the people it wants. I’m hoping I can make it to my Automatic Discharge just so I can use the little redundancy I am entitled to help start a new career for myself.
With regards to the loans I think the experts will need to know what they are for such as a car loan etc
Good luck and keep posting with any questions – this forum has helped me so much this last four months.
Carl
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fixie
Starting Member
27 Posts |
Posted - 05 January 2011 : 20:03:47
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** thanks to all who have replied, I am very gratfeful **
I enquired with work and they said my BR would not affect my employment so that is a m-a-s-s-i-v-e relief also, more confusingly as they payment for the loans is taken direct before my slary is paid they said it would continue as before, so no change.
Anyone know how this would be viewed by the OR ? Would this mean it would not form part of the BR is it much like having a perk in the job as such, like having your parking paid for ?
This area seems very grey and I would love some sort of clarification if anyone here is able to assist ? |
Edited by - fixie on 05 January 2011 20:04:31 |
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fixie
Starting Member
27 Posts |
Posted - 09 January 2011 : 23:59:19
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The bit that confounds me is that the 2 loans or 'regular payments' as they are called are taken directly out of my wage before I am paid , directly by my employer. They appear like any deduction such as tax or NI on my payslip so how does this stand as such when declaring BR by the OR?
It is not as if I receive my wage THEN pay the sum it is deducted from my salary as I receive it.
Hopefully I am making sense here. It is an odd situation.
Does anyone know how I stand on this as I am not consciously paying another creditor as such I the choice is removed by the auto deduction as such?
Thanks for your advice so far on this, but I am still left scratching my head ! |
Edited by - fixie on 09 January 2011 23:59:44 |
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carl
Junior Member
115 Posts |
Posted - 10 January 2011 : 04:01:35
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Hello Fixie
I think the experts will need to know a little more about the loans before they can offer you any advice regarding them like when was the loan taken out, what was it for, how much was borrowed and how much is still outstanding etc.
Carl
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fixie
Starting Member
27 Posts |
Posted - 10 January 2011 : 08:45:37
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They were for travel ( bicycle ) and an IT loan for homework related computer-.travel is due to expire in june for approx £50 p/m and the IT one in Aug 2012 for £60 p/m (taken out aug 2010).
Both are taken before the wage reaches my bank account - taken by the employer ( council ).
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fixie
Starting Member
27 Posts |
Posted - 10 January 2011 : 12:17:09
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I have spoken to my employer again regarding the BR an loan - they advise that the BR makes no difference to them as long as I remain employed the money will be deducted from my salary each month.....there seems no way out of this without my job being threatened or the BR being annulled....can anyone shed light on this ?
If the loan is paid prior to the BR application what happens as they are no longer a creditor. I am despairing right now. |
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Employee loan query
