Hi everyone. This is my first post. I am filing for bankruptcy in about 3 weeks and have a debt mountain in France you wouldn't believe (nearly £1M shortfall!! AFTER my house and all my assets are sold), and was created by my ex-wife. I live in the UK and my COMI is in the UK (for those that know what that is!). I have had 4 years of constant stress, debt and legal fees fighting bankruptcy but the french courts and banks have finally beaten me.
Two questions please:
1) I have spoken to an adviser at the Citizens Advice Bureau and he says that I will have to pay 1/2 of any spare net income I have for 3 years. Does this sound right? Can this vary up or down depending upon the OR?
2) What is the difference between the 1st year (before discharge) and the 2nd and 3rd years while I am still paying the IPO? Other than being a company director and having a bank account - what is different? Do you still have a monthly living allowance allocated in year 2 and 3?
As regards a monthly payment, if you have disposable income over £20 after your bills and living expenses have been taken into account and that is for everyone regardless of where they live.
There is no difference after you have been discharged other than your name will come off the Insolvency Register. Your credit rating will be shot for six years from the date you declare BR.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
Hi Niobe. Thanks for your response. Sorry this is a big issue for me. The CAB 'finance expert' I met with said that the OR would take 50% of my net spare income after the 'monthly allowable living expenses' etc. You seem to be saying that if for example I had £500 left after my allowable living expenses that the OR would take £480 of that? (the CAB guy said it would be likely to be £250).
No, the OR would take all of it. Unfortunately the CAB can give wrong information.
Have a chat with an expert, we have a couple that post on here. The advice is free.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
As Niobe has said, your income minus your essential outgoings is the figure that you would need to pay in an income payment agreement (if that happens to be over £20)
This would be payable for 3 years and can increase, decrease or stop depending on your financial circumstances. It can be reviewed at any time if your circumstances change during the 3 years.
You can not be a company director or be involved in the management of the company for the year you are bankrupt.
IPO payments - proportion of your income?
Posted - 17 September 2013 : 06:14:52
