After Bankruptcy

Naemoney
Naemoney Posts: 16 Forumite
in Bankruptcy & living with it
Hi Forum,

I've just been declared bankrupt so I've got 12 months to get through before discharge.

My question is at the moment I'm not working so don't have to make contributions to my debt but even after discharge I will still be expected to pay something for 48 months if say I started working, does that come to an end after 48 months or do I have to keep paying until the debt is paid off?

Thanks,

Naemoney

Comments

  • haggis0073
    haggis0073 Posts: 160 Forumite
    They can only set up an ipa/ipo within the 1 year of the date of bankruptcy. After that 1 year has passed then they can't. I am sure Someone will be along with a more definite answer soon though
  • TheGardener
    TheGardener Posts: 3,303 Forumite
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    haggis0073 wrote: »
    They can only set up an ipa/ipo within the 1 year of the date of bankruptcy. After that 1 year has passed then they can't. I am sure Someone will be along with a more definite answer soon though

    That's pretty much right. If the OR has not set an IPA by the time you are automatically discharged in 12 months - then no matter how much you earn after that - you will not be expected to pay anything. An IPA is for those who have 'surplus' income during the 1st 12 months. However, if an IPA was set within the 12moths and you subsequently lost your job, then the OR can come back and ask for contributions until you have made a total of 36 payments. IPA amounts can be varied depending on whether income rises or falls.
  • haggis0073
    haggis0073 Posts: 160 Forumite
    TheGardener wrote: »
    then the OR can come back and ask for contributions until you have made a total of 36 payments.
    So in theory could that go on longer than 3 years?
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
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    haggis0073 wrote: »
    So in theory could that go on longer than 3 years?
    No. Any IPA that may start will run for 3 years. It may run at zero through a period of unemployment or low income. There is no catching up to do.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • The_Real_Cheddar_Bob
    The_Real_Cheddar_Bob Posts: 542 Forumite
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    If you can avoid being in work for the next year it will save you having to have an IPA. I was fortunate enough to avoid an IPA.

    There are circumstances where IPA's can be extended. These are usually to do with fraudulent behaviour, although someone else with more knowledge of this maybe able to expand.
  • Simon.G
    Simon.G Posts: 54 Forumite
    I have a month left before I am released from BR and I have been working for most of it.

    My income is equal to more or less the total amount of my expenses and therefore I have no disposable income. Because of this, the OR has not been able to impose an IPA.
  • Naemoney
    Naemoney Posts: 16 Forumite
    Simon.G wrote: »
    I have a month left before I am released from BR and I have been working for most of it.

    My income is equal to more or less the total amount of my expenses and therefore I have no disposable income. Because of this, the OR has not been able to impose an IPA.

    Hi,

    Good to know about the work situation, As I've not been working for a while any job I got would be possibly minimum wage so I doubt I would have disposal income!
    But as I say it's something to keep in mind.

    Cheers,
    Naemoney
  • maxmycardagain
    maxmycardagain Posts: 5,747 Forumite
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    rjwr wrote: »
    If you can avoid being in work for the next year it will save you having to have an IPA.


    HOLIDAY TIME! :beer:
    Now we all know how it felt to play in the band on the Titanic...
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    First Post First Anniversary Combo Breaker
    I didn't get an IPA and I worked all through my bankruptcy. My outgoings were quite high though and I didn't even list all of my expenses.

    :j :j


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