|
|
 |
 |
FORUM |
|
> Browse and post on our forum |
|
|
|
 |
|
 |
| Author |
 Topic  |
|
|
kissinger
Starting Member
8 Posts |
 Posted - 14 June 2012 : 19:15:32
|
I'd like to ask a couple of questions about the actual process of bankruptcy.
The first relates to how the OR calculates your income. I work, but my income over the course of the year fluctuates a lot. Some months I'll earn more than I need to pay for all of my expenditures, in other months I won't earn enough to pay for my expenditures. However, over the course of the year, my income is just enough to meet all of my expenditures. At the point at which I plan on declaring bankruptcy, my income will be higher than it usually is, but a few months after that it will drop down and be lower than usual. With this being the case, will my OR take this into account when deciding if I need to pay into an IPA, or will he or she require that I pay into an IPA simply because my initial montly income is more than my intial monthly expenditures?
I.e. Will they work determine my eligibility for an IPA based on what my income will be for the whole year, or will it be done on a month by month basis?
Secondly, if you declare bankruptcy and are required to pay into an IPA, what happens if your circumstances change and you can no longer afford to pay into an IPA? Would the IPA be discharged and, if so, if I was then discharged from bankruptcy, would that leave me free of any further obligations?
Thanks in advance.
-Jake. |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 14 June 2012 : 20:12:54
|
If you have variable income they will use an average as your income amount
If you have an IPA it lasts for 36 months, if during that time your circumstances change the IPA will be varied, up or down, if your surplus drops to zero then it will be suspended but you are still under the terms for the remaining period and so still have to notify the OR of further changes |
 |
|
|
kissinger
Starting Member
8 Posts |
Posted - 15 June 2012 : 10:32:25
|
Thanks for the information.
Regarding the IPA issue though, I was told by somebody from Community Legal Advice that if your income drops that and you can't afford an IPA anymore, then the IPA is 'discharged' (his words, not mine). And that if you're then discharged from bankruptcy after that, you are under no IPA obligations from that point on. |
|
|
|
Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 June 2012 : 11:49:45
|
If no IPA is in place before you are discharged the you have no obligation to inform the OR of a change in circumstances.
If you have an IPA and your income drops then the IPA can be reduced or suspended or in some cases closed.
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 and I'm now looking forward to getting married in September 2012 - I'm proof that you can go BR and come out the other side. |
|
|
|
kissinger
Starting Member
8 Posts |
Posted - 15 June 2012 : 12:02:33
|
Oh, I see. So it basically depends on what your OR wants to do?
Thanks for the info. Congrats on coming out of BR/IPA and congrats on the wedding! |
|
|
| |
Topic |
|
|
|
| bankruptcyhelp.org.uk Forum |
© bankruptcyhelp |
|
|
|
|
|
 |
|
|
|
|
|
I'd like to ask a couple of questions about the acteal process of bankruptcy
