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Bear
Junior Member
183 Posts |
 Posted - 20 April 2008 : 11:13:38
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Hi, I'm new on this site, but it seems about the best and having already paid for some pretty poor advice I thought I would give this a go! 
My wife and I are bankrupt (25th Jan 2008) as a result of a business failure and redundancy. So we are claiming benefits at the moment. I have been looking for a job, and now it seems that I am pretty close . I have a few questions that now seem important.
1. The job would give me a car allowance of about 7k (pre tax), obviously a good car is therefore important for the job, and is expected. Would this amount be taken into account as allowed car expenditure, as well as extra income, or will I lose most of it to an IPA?
2. As I am currently on benefits we aren't subject to any repayments. The creditors meeting was on April 9th and no trustee was appointed, so I guess it is an open and shut case (few assets, obvious what went wrong). What is the likihood of an early discharge? When would it happen (best guesses please)...? Will the OR keep us hanging on in the hope of getting an IPA?
3. Different subject...if my parents die (heaven forbid) , and we had an IPA, but were discharged would the OR have a claim or not?
4. If we had an IPA but were discharged, and our rent is 750.00 pcm (family of four), and we decided to buy a house next year(probably not realistic, we haven't even got jobs yet!!! ) would the mortgage paymants £1250.00+ be allowed as expenditure by the OR?
Thanks for listening |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 April 2008 : 17:18:28
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Hi Bear and welcome to the forum.
I have answered in bullit form for ease - hope you don't mind.
1. CAR ALLOWANCE. Provided that this is clearly identified in your contract of employment in theory it will be OK. The question I have is have you identified where you will be funding a car on lease or HP yet. If you can get a car on finance then you may well need a deposit so this may be a problem but you would also need to identify to the OR where this came from.
There are finance companies who specialise in finance for adverse situations - I will check out to see if they will offer these for people currently in Br. Be aware that the interest rates are higher.
2. Early Discharge is a grey area as I have never really understood why some receive one and others get 12 months. I don't believe it is to srting people out - rather down to workloads perhaps.
3. If your parents die while you are in Br then this is treated as a windfall and would go to the OR. If they died the day after you are discharged ( 12 months or less) then you can win the lottery and keep it without a problem even if you are in an IPA.
You might want to approach your parents to see if they have a will.
4. House / Mortgage / rent. The IPA reflects a percentage of your disposable income paid into the pot for the Br costs and for the benefit of your creditors. I have a couple of Q's..... where is the deposit coming from? Due to the current credit crunch you may well find that you need a deposit of 30% to get a mortgage as a newly discharged Br.
if a third party put the deposit down that would be OK and clearly the interest rate would be quite high so would reflect in higher monthly payments.
From my experience at the present I question the wisdom of rushing back onto the housing ladder.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Bear
Junior Member
183 Posts |
Posted - 20 April 2008 : 22:07:07
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Hi Paul, excellent advice and Free!!
As for the car, no I haven't identified one yet and have no idea how to go about getting one...
As for the house, its a pipe dream really, I just have this plan that if house prices drop by 25% and we can buy at the bottom, then we are back to where we started from !
One more thing, if I was to move to a house with a higher rent would the OR have anything to say about in terms of an ipa?
Thanks
Bear |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 April 2008 : 22:47:19
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Nothing is ever free - I will scrounge a cup of coffee from you at some point!
Re the rental increase - provided that it is a reasonable and justified increase then this should be OK.
re Car - hope to have info in next couple of days for you to start to request quotes
Which part of the world do you live in?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Bear
Junior Member
183 Posts |
Posted - 21 April 2008 : 09:40:35
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I live in sunny Southampton
Bear |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
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Topic |
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Getting a job
