I went bankrupt 2 months ago and was (still am) on Income Support so no IPA as a result. It's a long story but basically it seems I've landed a job working for a Dutch company in Canada and will start earning what I used to. I will have a disposable income of at least £2k a month and so 70% IPA would see me paying £1400 a month say. After 36 months I will have paid over £50k and I only ever owed about £30k give or take. This seems a bit unfair on the face of it, I will pay back more than I ever owed and my credit record has been trashed just because of circumstance and the fact I couldn't control when I would start earning again!
Can this be true or can I expect the OR to be sensible about this?
If you have £2K a month DI then the OR will take £1400 per month as you say. How long for is debateable as you would be in a position to clear your debt (£30K) in 21 to 22 months but then you would be charged a fee by the official receiver. How much I would not know but it is very unlikely to be £20.4K which would be the balance if you paid over the full term of 36 months.
If I were you I would call the OR's office and explain your position, basically stating that whilst IF YOU CHOOSE TO ACCEPT THE JOB, you are ok to pay off 100% of the debt AND you understand there may be an additional fee, the decision on whether you accept the job or not rests on what that fee would be.
If they can give you a figure (I doubt they will immediately) which is acceptable make sure you receive confirmation in writing and then only sign the IPA proposal for the necessary term (not 36 months) to cover the agreed amount.
If you have the opportunity to earn good money like that you'd be daft not to take it & if you satisfy your debts in full then everyobnes's a winner surely?
Plus you would be able to save a considerable amount of money too, which would help as a deposit say if you ever wanted a mortgage.
Hi Sounds like you are in a bit of a win win here. If you clear off what you owe and your OR fees does that not mean you're BR free? I realise that it won't mean , in your case, that you will be discharged ealry, or might it? but if not and you clear the whole amount after discharge can you not get the BR taken off you credit file, therefore not having it on there for 6 years?? Nat
once the debts and trustee's fees are satisfied you can then apply to have your bankruptcy annulled which will erase the record completely from your credit file.
IPA - Can this be true?
Posted - 06 November 2008 : 12:00:44
