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Gary.3
Starting Member
11 Posts |
 Posted - 17 June 2012 : 15:54:10
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Hi,
I have been issued with an IPA of £25 per month for 36 months - no problem with that except I would rather be clear of the whole BR procedure.
A family member has offered me the full amount of £900 if no further payments needed to be met. Given that the cost of collecting and administering such a small amount eery month would inevitably mean that little (or none) of the monthly payment would ever get to the creditors, would the OR be likely to accept this? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 17 June 2012 : 16:13:13
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I doubt that will be allowed - it's not like an IVA where you can make an offer of lower payements.
In the the nest three years your inocme may change and the OR will be keeping an eye on that.
Ascend may you find no resistance
Know that you made such a difference
All you leave behind will live to the end
The cycle of suffering goes on
But memories of you stay strong
Someday I too will fly and find you again
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debtinfo
forum expert
2826 Posts |
Posted - 17 June 2012 : 18:34:24
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| You can but ask, but it would not normally be accepted, i know of only one case in my time where it was and that was because of a mental condition and it was shown that the continuing oversight of the OR over a long period of time might be very detrimental to the bankrupts mental health |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 17 June 2012 : 18:51:58
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I presume you would have to prove that though debtinfo.
Ascend may you find no resistance
Know that you made such a difference
All you leave behind will live to the end
The cycle of suffering goes on
But memories of you stay strong
Someday I too will fly and find you again
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year 2029
Average Member
590 Posts |
Posted - 18 June 2012 : 06:23:41
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I guess there's no harm in asking is there?
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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debtinfo
forum expert
2826 Posts |
Posted - 18 June 2012 : 07:17:58
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| yes normally with a letter from a doctor or something like that, and yes there is no harm in asking |
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year 2029
Average Member
590 Posts |
Posted - 18 June 2012 : 16:02:11
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Hi Gary,
Let us all know how you get on.
Good luck.
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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xmas baby
Average Member
537 Posts |
Posted - 20 June 2012 : 12:45:53
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Hi Gary,
I don't think they would accept this somehow. They might even, if you state you have this extra money available of £900, take that away from you too as it could be considered an asset, although it is not a huge amount of money and they might not be overly concerned. It is still a possibility though you can never tell what the OR might or might not want. In addition to this you might still have to pay a monthly IPA on any 'spare' income once all expenses have been taken into account.
I would just accept the monthly IPA and maybe keep the £900 in a safe place for a rainy day?
xmas baby |
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year 2029
Average Member
590 Posts |
Posted - 20 June 2012 : 12:49:39
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Its a family member that has offered the £900, so its a third party offer.
It might work, as its not far off the monthly start amount of £20 anyway.
Hopefully Gary will get back to us all soon, and let us all know.
Good luck!
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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xmas baby
Average Member
537 Posts |
Posted - 20 June 2012 : 12:49:55
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Hi Gary,
In addition to my previous post, I also think the reason why IPA payments are spread out over a period of time (3 years) is that there is always the chance that your income could increas over this time and that way the IPA could be increased too thereby releasing more funds to the creditors involved. Obviously it also works the other way in that you could also have a decrease in income and the IPA would be decreased accordingly. I think in most cases, income tends to go up rather than down (although in the current economic crisis it seems wages are either stagnating or going down and everything else is going up).
xmas baby |
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year 2029
Average Member
590 Posts |
Posted - 20 June 2012 : 12:59:16
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I can understand why Gary wants to do this.
Some people are released from BR without an IPA, and are then fully clear without having to wait the 36 months.
Someone could, in this situation be released and within months happen upon a fantastic job, and never have to be obliged to give up any money to the OR, as the OR cannot enforce a zero IPA.
It could be that the OP is the next best entrepreneur, but feels he may be held back by not being fully released.
Let us know how you get on Gary, I for one wish you all the luck!!
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 June 2012 : 22:40:27
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I can understand why he wants to do it but I can also understand that the OR wants to maximise income for the creditors.
My thoughts are (and it is purely my opinion) that even if this money were paid over there is still in excess of £20 a month to be paid to the BR.
It's not like an IVA where a full and final offer can be made.
Ascend may you find no resistance
Know that you made such a difference
All you leave behind will live to the end
The cycle of suffering goes on
But memories of you stay strong
Someday I too will fly and find you again
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Gary.3
Starting Member
11 Posts |
Posted - 21 June 2012 : 00:50:50
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No luck infortunately.
The OR THINKS that I might get a pay rise during the course of the IPA (highly unlikely - I already earn more than minimum wage and it's only these employees who have seen any significant increase over the past two years, and no plans for increases next year either).
Still, looking at it again as some of the allowances increase each year then by January,I will probably be back under the £20 disposable income limit anyway!
It just seems ridiculous that the creditors are unlikely to see any of this money by the time the solicitors have added on their charges to handle such a small amount.
I was however planning to do some additional work on a self-employed basis next year, but there seems no point if the OR will simply take all this money away from me anyway!
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year 2029
Average Member
590 Posts |
Posted - 21 June 2012 : 01:05:57
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Thats a shame Gary. I was rooting for you!!
I can empthise with you about the extra work.
At least if you go under the £20 you'll not have to pay anything. Seems a lot of hassle for the extra £5! And not feeling like you're fully released from BR.
Niobe....£25x36months=900
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Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 21 June 2012 : 06:30:55
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Year 2029, I am aware that the figures add up to £900. My point was that the OR could take this money and still insist on an IPA as Gary will have £25 a month disposable income which could be paid over to the creditors.
Sorry you didn't get to do it though Gary - perhaps your DI will go down before the three years are up.
Ascend may you find no resistance
Know that you made such a difference
All you leave behind will live to the end
The cycle of suffering goes on
But memories of you stay strong
Someday I too will fly and find you again
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debtinfo
forum expert
2826 Posts |
Posted - 21 June 2012 : 06:44:36
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its not so much that they try to maximise the IPA, after allthe DI could go down as well as up, but it is more that they have to be fair to everyone and some people will arrange (not saying you are) this so that they can avoid paying later on whe they know they will be coming into extra income in the near future.
Couple of other points, the solicitor collecting is paid on a percentage basis so they get the same if you pay it in one go or monthly. In any case if the amount if £900 the creditors wont see any money either way as the costs of the bankruptcy have first priority. The only way the creditors would get anything is if you stay subject to the IPA for the 3 years and your income increases later.
Finally as a general opinion year 2029, the system is slightly skewed, it is wrong that if you avoid a job for 12 months you dont have to pay anything, but if you have a job you end up paying for 3 years.In my opinion 3 years is not an unreasonable time to pay for and they should change the law so everyone has to declare income and pay if able for a set 3 year period from the bankruptcy date regardless of their current situation. That way it would be fairer to all and you would have to be really determined (ie avoidwork for 3 years) to avoid paying |
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Would the OR be likely to accept full amount of IPA now instead of monthly payments ?
