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grace347
Starting Member
United Kingdom
36 Posts |
 Posted - 27 December 2008 : 07:19:57
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Hi there,
Just joined the site, hoping to gain some info with regards to bankruptcy (obviously)!
Me and my partner are going to be applying for bankruptcy immenently.
We have worked out our finances and as thought we will have no extra income available for a payment order. We have a 20mth old daughter whom i stay at home to look after, we have another baby on the way on 3rd Feb 09, (not great family planning but were working our way through it)! Therefore I am not looking to return to "work" for at least another 3 years (until this next one can go into part time nursery). The cost of sending them both to nursery and paying for it before then just wont work out financially.
My partner is the main earner. We were wondering what will happen in these circumstances with regards to the payment order. Has anybody ever had any experience of this?
My partners debts are around £40k, mine are approx £20k.
Many thanks in advance for any advice!
Jennifer x |
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RHB
Senior Member
1159 Posts |
Posted - 27 December 2008 : 09:03:31
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| It would depend how much your partner earns + any tax credits, what the cost of renting/mortgage bills etc are. |
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grace347
Starting Member
United Kingdom
36 Posts |
Posted - 27 December 2008 : 10:45:56
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Hi there RHB,
Thanks for your reply, we rent our home, we have no assets and all my partners salary is taken up with the cost of living and bills etc. We currently do not receive any tax credits, however I will be applying for these shortly. We receive 72 child benefits per month for my daughter and my partners salary is 1900 per month.
By no means are we extravagant or have we ever been, the most costly thing I would say is our rent at £750, our rental agreement runs until sept 09. Unless they kick us out due to the bankruptcy that is!
We do not have mobile phones or as I said have extravagant costs, I just wanted to know what would happen if the official receiver concludes that we have no available income to spare for a payment order, what would the process be from there or has anybody had any experience of this?
We were managing to pay our debts for the past couple of years as we were in a debt management plan, however my partners business had to close and we have been unable to make the payments therefore have been paying reduced payments but have decided to apply for bankruptcy.
Thanks
Jennifer x
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 27 December 2008 : 13:15:01
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Hi Jennifer
If your I&E shows that you only have enough to live on per month and there is nothing left to pay into an IPA for the benefit of the creditors then the likely hood of the OR implimenting an IPA for you would be non exsistent.
You would have to have over £100 left per month for the OR to start one in the first place.
They will go over your essential living costs then if no money is there to take then they wont.
Hope that helps.
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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grace347
Starting Member
United Kingdom
36 Posts |
Posted - 27 December 2008 : 14:13:42
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Hi there,
Many thanks for your response, what is an I&E and IPA?
If this is the case then what would happen with the bankruptcy, would it just be automatically discharged or would he be kept in it for a minimum period incase his income increases?
Thanks
Jennifer x |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 27 December 2008 : 14:33:26
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I&E=
Income and expenditure
IPA=
Income Payments Agreement- Money paid to the OR inexcess of your i&e per month
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 27 December 2008 : 14:38:20
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Hi Jennifer
Once made bankrupt unless there are other circumstances like fraud that the OR may be looking into then you will be automatically discharged after the year. Some cases now are being discharged as early as 5-6 months, once discharged then unless an income IPA was in place then no other IPA can be made against you.
So that means that any extra overtime etc wont be counted anymore. You will be free to go on as you were. If you had an income IPA in place prior to discharge then that would remain for 3 years even after discharge and would be paid still even when the discharge has taken place, it can be adjusted throughout the 3 years for things like loss of income, new baby expenses, household bills going up etc etc and so it is pretty flexible and you would need to inform the OR of these changes until the last payment is made.
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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grace347
Starting Member
United Kingdom
36 Posts |
Posted - 27 December 2008 : 14:59:45
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Thats brilliant, many thanks for your help!
Jen x |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 27 December 2008 : 16:21:50
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Your more than welcome :-)
Have a great new year.
Jo
x
Wishing you all a Happy Debt & Worry Free 2009
21 Weeks down
31 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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