My husband and I are thinking of declaring ourselves bankrupt. We owe approx 60K, our worry is that we earn approx £2000.00 per month and do not pay rent as we live in a tied house looking after someone with learning disabilities. Most of our income goes on paying our debts including tax arrears. Is it the court that decides how much we need to pay each month towards our bankruptcy debt.
Hi Linda2 - welcome to the forum. It is the OR that decides whether you need to make a monthly payment (an IPA) - this is based on the information you have put into your SOA form. An IPA is worked out from your disposable income once all essential payments have been deducted. It is percentage of this disposable income not all of it. Have you looked into other options such as IVAs or debt management plans before deciding on BR?
The Court would be the ultimate judge if you refused to accept an IPA - wherein an application would be made by the OR for an IPO - Income Payments Order.
If you have some disposable income, an IVA or a DMP could also be an alternative, as Vicki has already highlighted. In the circumstances it might be beneficial to chat to an insolvency practitioner to explore all of the options which may be available to you.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
Is it the court that decides how much payment ?
Posted - 16 June 2008 : 18:47:18
