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Snow Dog
Junior Member
112 Posts |
 Posted - 20 September 2008 : 17:47:25
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Hi, after seeking some good advice about going bankrupt. I was wondering what actually happens to you during the year that you are declared bankrupt. By this I mean, how much of your income do they take? Do you have to have regular meetings with the OR? Can anyone give me any ideas?
Thanks very much |
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BankruptC
Senior Member
1030 Posts |
Posted - 20 September 2008 : 19:10:05
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Hi snow dog.
I've just gone BR myself but I understand that no, you don't have regular meetings with the OR. You have an interview soon after going BR, either face to face or on the phone dependig on the circumstances (if businesses are involved or if it's a complex case they are usually face to face but otherwise often overthe phone).
In terms of how much income they take, that depends how much disposable income you have left after all essential expenses. They will take between 50 and 70 percent of your DI depending how much there is.
The amount you pay each month is an IPA (income payments agreement) and is usually payable for 36 months. If at any time over the 36 months your circumstances change, you have a duty to inform the OR who may then amend your IPA either up or down, or dissolve it altogether.
If you pay tax you will also be put on a NT (nil tax) code, which means you will pay no tax for the remainder of the tax year in which you go BR, BUT you will pay the tax to the OR instead.
Other than that, you are pretty much left alone by the OR as they look into your affairs. Of course at any time they may contact you for extra information or if they think it necessary due to something they learn when looking at your affairs, to ask you to attend a second interview.
Hope that helps a little!
Keep asking the questions!
C. x |
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Snow Dog
Junior Member
112 Posts |
Posted - 20 September 2008 : 19:18:38
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Thank you so much C for that info. I think I asked plenty of questions to my advisor the other day about actually going bankrupt, but nothing about what happens while you are bankrupt
Re tax. I won't be paying any tax because I am giving up work for sometime due to health reasons..but my husband is self employed, so it is always hard to know how much tax he will have to pay. I guess the OR will decide on that amount?
The other thing is about paying the IPA, as he is self employed we don't have the same income coming in each week, so I am wondering how they will work out how much we have to pay back?
I feel like I am asking really silly questions here. I apologise if they come across that way!
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BankruptC
Senior Member
1030 Posts |
Posted - 20 September 2008 : 19:26:30
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No question is a silly one! You're doing the right thing gathering plenty of info before you take the plunge.
I certainly asked plenty of questions at the beginning as the other experts will testify! :-)
Yes, the OR will look at the household income ad outgoings and decide how much you have to pay. If your DI is less than £100 you won't have to pay at all.
With regards to your income being erratic, the OR will usually take a average for the last few months prior to BR and use that figure to calculate the IPA.
Take care hon, we're all in the same boat :-)
C. x |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 19:37:33
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Hi
with regard to your income then as you have only benefits there will be no disposable income and therefore no income payment agreement.
If your husband is self employed then his income is what is left AFTER ALL of his business expenses such as mobile phone, accountants costs, insurances etc etc etc .
If you have a good advisor then they will be able to ensure that all of the appropriate allowances are accounted for before disposable income is calculated.
As he is self employed then they will take a view of his income over the last year - completed accounts are important - and it would be based on that.
The OR will also send a review document on 6 months time to check on income & expenditure. If there are no significant differences then it is possible that they will advise the creditors that they are considering an early discharge.
As you are running a business clear and accurate preparation prior to br are important. You will certainly have a face to face interview with the official receiver which I am sure your advisor will attend with you.
At this meeting the quality of the preparation is important and will make your life significantly easier by having all the books , records , debts sorted & in order. I assume that the advosor will be doing all of this for you.
hope this helps
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Snow Dog
Junior Member
112 Posts |
Posted - 20 September 2008 : 19:49:52
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Hi, and thanks again..Yes the advisor is sorting everything out..well I hope so, as it is you Paul
I do have one more question if that is ok? We have been advised not to go bankrupt until November. We are getting hassled to death by creditors right now..today we have had loads of phone calls..which we ignored btw! I am worried that as we are not speaking to the creditors that they will start sending summons and things like that. Today we had a letter from Mercers who are asking for £300 towards my husbands Barclaycard..we don't have £300, or rather the money we have is going towards saving up to pay off our accountant for his work, and to pay my shops bills before the shop closes down. Should we be speaking to the creditors and telling them that we are going to go bankrupt? The main reason we are ignoring their calls is that I, personally cannot take anymore of them hassling us. It was making me feel ill, I am ashamed to say that, but that is the truth. |
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BankruptC
Senior Member
1030 Posts |
Posted - 20 September 2008 : 20:01:40
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Hi again:-)
It's up to you I guess. We did tell them right from the start and feel it was defo the right thing for us. They were all fine about it. Some said they wouldn't contact us for another month and didn't. Others said they'd have to keep calling till we could give them our BR number etc, which we thought was fair enough. I just told them it would waste everyone's time if they did this cos we'd just tell them the same thing over and over again. It made it much easier when they did call too, cos we could just say, 'We're going BR, it's in your notes'. They usually just said 'OK sorry' and went!
As I say I can't advise you what to do really but that's what we did and it definitely seemed to reduce the number of calls and made it less stressful.
C. x |
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Snow Dog
Junior Member
112 Posts |
Posted - 20 September 2008 : 20:04:07
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Thanks C, well that is re-assuring. I think we will take that road too.
Another question! When you go bankrupt and your names go in the local papers, do they just put your names, or do they put your address too? And do they put any other information?
Thanks. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 20:20:30
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Hi
lets have a conversation tomorrow. I will then contact all your creditors on monday and have conversations from there.
I will send you an email with the info I will need to contact the creditors.
Paul
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Snow Dog
Junior Member
112 Posts |
Posted - 20 September 2008 : 20:25:10
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| Thanks Paul. |
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BankruptC
Senior Member
1030 Posts |
Posted - 20 September 2008 : 20:35:25
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Hi again!
Yeah, they do put your address in the paper, and your occupation too.
C. x |
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Snow Dog
Junior Member
112 Posts |
Posted - 20 September 2008 : 21:37:43
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| Oh my goodness..that is a nightmare! |
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poopedmass
Junior Member
United Kingdom
229 Posts |
Posted - 20 September 2008 : 21:38:35
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| hi, as soon as we gave our creditors the BR number all the calls stopped.. and we were getting hourly calls, feel like a huge weight has been lifted now, just the OR interview to go. |
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BankruptC
Senior Member
1030 Posts |
Posted - 20 September 2008 : 21:42:28
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Don't worry, snow dog. I panicked about it too, but how many people do you know who read the insolvency notices? I panicked because I'm a teacher andwas really worried what the parents would think about a bankrupt teaching their child, but so far nobody has mentioned it at all.
Chin up hon.
C. x |
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Snow Dog
Junior Member
112 Posts |
Posted - 20 September 2008 : 21:47:09
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| This is true C. but it is really depressing. Ah well, I guess its inevitable, so I had better get used to the idea. Thankfully the newspapers are soon thrown away |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 21:48:14
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It is probably worth mentioning that it is not always advertised and is up to the local OR. the notice is also hard to find and is very small being half the size of a matchbox.
I would encourage you to buy the local paper and try to find the adverts. Often they are in the large regional paper rather than local paper.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Topic |
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What happens when you are bankrupt?
