On 16th August 2006 I made myself bankrupt. On 19th December 2006 I entered into an IPA. My NT coding changed to nil ahead of the IPA The IPA is shortly to come to an end. However I am in arrears with the IPA payments. This is mainly due to a change in circumstances, new baby, new job. Clarke Wilmott have been quite lax in their dealings with me but with the IPA shortly to come to an end, my trustee is now requiring me to complete a new income and outgoings questionnare. I am fine with this but I note that they are wanting details of my wifes income etc. (We were married after my discharge).
Questions: Can the Trustee look to recover the NT payments prior to the IPA coming in to force?
Do I have to disclose my wifes financial details?
What action, if any can the trustee take after the IPA ends to recover arrears?
If your circumstances changed then the IPA should have changed as well. With a new job and another mouth to feed your IPA should have changed at this point.
The Trustee can recover the NT payments and if they don't then HMRC will. This money is either paid to HMRC as income tax or the OR to be paid to creditors.
There shouldn't be any need to disclose your wife's financial details. The OR has complete control of your finances but not your wife's so you should just be able to put down the amount she contributes to the bills and that should be it.
If you are found to have defaulted during the IPA then the court has certain powers:
quote: 31.7.51 Action following default post discharge
A bankrupt who has received his/her discharge from bankruptcy, still has a duty to attend upon the official receiver/trustee and/or provide information concerning his/her affairs when reasonably required to do so by the official receiver/trustee. Where a bankrupt defaults from making payments after receiving their discharge from bankruptcy, the court has continuing power to review agreements/orders made. An IPA is legally enforceable in the same way as an IPO and the court can review it in the same way, both before and after discharge.
If your income/expenditure has changed over the last 3 yrs but your IPA hasn't then you should speak to the Trustee and explain that this is why you are behind in the payments.
The OR cannot recover the NT payments. When you are put onto a NTcode the HMRC makes a claim for the entire year in the bankruptcy this is where there claim for the money resides. The NTIPA is NOT the OR collecting tax but is rather the OR collecting the surplus income that results from the not paying of tax (a minor but important difference)this means that any action is not under tax laws but under the laws of enforcement of the IPA in bankruptcy. Since the money was received before the IPA was signed that no action can be taken under the terms of the IPA agreement. The money received is income and not a windfall and so can not be claimed as an after aquired asset so it falls like all the other surplus income received before the IPA is agreed, yours to keep
On 16th August 2006 I made myself bankrupt.
Posted - 14 September 2009 : 11:55:13
