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IVA2009Ggrrrr
Starting Member
4 Posts |
 Posted - 14 June 2011 : 13:24:50
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Hello!
Does everyone who is declared bankrupt have to have an IPA or is it dependant on your situation. I understand that they will take even the last £20 that you may have left, but what if you do not even have that and circumstances are unlikely to change in the future... do you still have to enter an IPA?
Also, what happens to any extra money you make .. .like if you work and extra one off shift? We are currently in an IVA and we pay them 50% of anything above our allowed allowance... but what happens wil an IPA? DO you have an allowance you are allowed to keep or do they just take everything?
Thanks!
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moodybluetwo
Junior Member
156 Posts |
Posted - 14 June 2011 : 13:54:07
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| I believe that if you have £20 or more disposable income that can be taken towards an IPA/IPO. If you have less than £20 disposable income an IPA/IPO would not apply. |
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JimmyChoo
Starting Member
United Kingdom
29 Posts |
Posted - 14 June 2011 : 17:01:33
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Hi,
I am not an expert, but having read much on the subject, since DEC 2010 changes to the IS mean that once you have £20 over disposable income, anything above that goes to your BR estate.
Previously it was a little more generous [got to keep 50% to 70% of disposable income] and in my humble opinion encouraged many people to seek active employment and not "sit-out" the 12 AD which I now know many people who can afford to do so, will do.
I hope this helps.
Regards,
Jimmy
quote:
Originally posted by moodybluetwo
I believe that if you have £20 or more disposable income that can be taken to
[quote]Originally posted by IVA2009Ggrrrr
Hello!
Does everyone who is declared bankrupt have to have an IPA or is it dependant on your situation. I understand that they will take even the last £20 that you may have left, but what if you do not even have that and circumstances are unlikely to change in the future... do you still have to enter an IPA?
Also, what happens to any extra money you make .. .like if you work and extra one off shift? We are currently in an IVA and we pay them 50% of anything above our allowed allowance... but what happens wil an IPA? DO you have an allowance you are allowed to keep or do they just take everything?
Thanks!
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RHB
Senior Member
1159 Posts |
Posted - 14 June 2011 : 18:13:30
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| TBH I don't think it's made much difference in that regard because people still avoided taking work for 12 months when the allowances were more generous. |
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moodybluetwo
Junior Member
156 Posts |
Posted - 14 June 2011 : 18:25:37
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31.7.27 Calculation of contribution to be claimed under a new IPA/IPO assessed on or after 1 December 2010
Following an assessment of the real disposable income (the income remaining after all expenditure necessary to finance the reasonable domestic needs of the bankrupt and his/her family has been taken into account, see paragraph 31.7.23), where the initial assessment is made on or after 1 December 2010 (regardless of the date of the bankruptcy order) and the bankrupt has surplus income of £20 or more, the full amount of this surplus income should be sought by way of monthly payments under an IPA (or an IPO if an IPA cannot be agreed). As the official receiver is seeking to recover the full amount of the surplus income, it is essential to ensure that each individual’s circumstances are carefully examined and all available information has been taken into account with regard to the individual's income and expenditure. Reference should be made to the guidance figures available in the HES which provides average expenditure figures for various household combinations and also Part 3 regarding income to be considered and Part 4 regarding expenditure to be considered.
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 14 June 2011 : 18:27:34
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I agree with RHB - there has always been people who have avoided paying anything by deliberately not remaining unemployed so the change in the rules probably won't make a huge difference.
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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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 14 June 2011 : 18:28:21
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Hi JimmyChoo
You almost got close to answering your own question and congratulations on doing your research so thoroughly.
If your disposable income is over £20, you would be expected to enter into an IPA for three years or until your circumstances change. Should you have no disposable income, an IPA will not be made. The Official Receiver will not keep a close eye on your financial situation and will more than likely request details of your Income and Expenditure at the beginning of your bankruptcy and immediately prior to your discharge. A one off extra shift payment or overtime is best kept to yourself. Strictly speaking you should tell the Official Receiver but if it does not happen on a regular basis........
There are really no allowances in bankruptcy which are set in tablets of stone but the Official Receiver does have ideas as to rent, cost of utilities and living costs in certain areas. Do not try and lie, it is quite likely that you will be caught out. However do not skimp on your housekeeping. If it is a genuine expense, it has to be allowed.
All the best
John Blackadder
Bankruptcy365
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk. |
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IVA2009Ggrrrr
Starting Member
4 Posts |
Posted - 14 June 2011 : 22:51:00
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Thank you for your messages. They are very helpful.
I do think Bankruptcy is the right option but I am just worried that it is not and then there is no turning back! I suppose it can't really get any worse and its just money... but I never thought I would consider going bankrupt! I just don't think I have any other option! |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 June 2011 : 10:25:07
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I didn't think I'd end up going BR either! I tried an IVA but that failed so I had no other option as a DMP would have taken too long to repay. In my situation BR was the best thing and meant I could move on, but think everything through carefully and take your time x
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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Topic |
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Bankruptcy and IPAs
