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  • FIRST POST
    • Butts
    • By Butts 2nd Oct 17, 2:08 PM
    • 157Posts
    • 51Thanks
    Butts
    Butts Lightning Bankruptcy
    • #1
    • 2nd Oct 17, 2:08 PM
    Butts Lightning Bankruptcy 2nd Oct 17 at 2:08 PM
    Finally went nuclear yesterday afternoon and submitted my application ....(Sunday)

    Can't believe it was approved and the Bankruptcy Order made this afternoon. Assuming they open at 9am that is FOUR HOURS
    Well done to the insolvency service.

    This was north of a 100K as well so it shows they can get their act together on occassions - perhaps it was a slow day.

    It says an Official Receiver attached to the County Court is appointed trustee of my estate (value 5p )

    I am told how to contact the person handling my case and if I have not heard within four days about my interview to do so.

    The only slightly worrying factor is my Bank Account - luckily thanks to strategic planning all my DD's went out today. However the BR Order and complimentary letter slightly contradict the information given on the Application Form with regard to whether the account will be affected. It says on the application they will ask for it to be kept open but on the letter it says "Any money in the account will be an asset claimed by the OR for paying your debts" I have only left a ton in to cover my remaing DD's - drew the other £100 out for living expenses. I suppose they would be more interested in thousands salted away. I don't get paid for a couple of weeks luckily so keeping the account open is one of my main priorities to speak to the OR about.

    I have used the SFS figures for my SOA and will feedback after my interview whether they allowed me "to take it to the limit" and avoid an IPA. My application had a £160 deficit of Income in relation to Expenditure so hopefully I should be okay.
Page 2
    • Butts
    • By Butts 24th Oct 17, 1:17 PM
    • 157 Posts
    • 51 Thanks
    Butts
    I was intending to buy it back. As it has no surrender value I didn't think beyond my discharge in a years time.

    It's a double whammy maintaining the life cover and reducing exposure to to an IPA by the value of the premiums.

    If you do buy it back and peg it before you are discharged are you saying it does not form part of your estate - ie it is like having it written in trust ? -am awaiting letter from Aviva with the options.
    Originally posted by Butts
    Just to clarify for everyone the precise options available and there consequences as laid out in a letter I have received from the OR.

    Quick reminder it is a Term Assurance Policy with no surrender value and the premiums are £45 per month.

    The OR has offered to "sell me" the policy for £50 (very generous )

    1.So if I buy the policy and carry on paying £45 month the OR only benefits if I peg it prior to bankruptcy discharge - ie 1 year. After that it reverts to me.

    2.If I don't buy and continue to pay the premiums the OR takes the payout should I peg it right up till it runs out- not just for the period prior to discharge.

    3. I just stop paying and the policy is terminated (moving me £45 closer to an IPA

    One thought occurs to me - why on earth would anyone choose option 2 ?
    • fatbelly
    • By fatbelly 24th Oct 17, 2:28 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    One thought occurs to me - why on earth would anyone choose option 2 ?
    Originally posted by Butts
    Because they don't read the letter, and that is what happens if you take no action in relation to your monthly premium nor in relation to the OR's letter.

    There are a lot of people who never open their post...
    • Butts
    • By Butts 3rd Nov 17, 12:43 PM
    • 157 Posts
    • 51 Thanks
    Butts
    Just to keep people updated with the events in my Bankruptcy...over a month now

    Pleased to say my Yorkshire Bank Account (pre-bankruptcy) is still functioning so looks like I have escaped the post-banruptcy closure that blights a lot of people.

    More good news - The Inland Revenue have effectively given me a pay rise as I have been issued an NT Code. As the OR is not setting an IPA due to my (deliberately) pitiful earnings the dosh will be mine to keep. Even with the tax money in my pocket I am still over £100 light of an IPA (on paper )

    My Life Insurance Policy I have paid the OR £50 so hopefully won't peg it before discharge when the Policy will return to me.

    Virgin Media - my Mobile Phone is still live despite the demise of my Virgin Media Account - just had the latest bill. NOW TV going in next week with broadband - using a prepaid toggle till then.
    • StopIt
    • By StopIt 3rd Nov 17, 3:00 PM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    Just to keep people updated with the events in my Bankruptcy...over a month now

    Pleased to say my Yorkshire Bank Account (pre-bankruptcy) is still functioning so looks like I have escaped the post-banruptcy closure that blights a lot of people.

    More good news - The Inland Revenue have effectively given me a pay rise as I have been issued an NT Code. As the OR is not setting an IPA due to my (deliberately) pitiful earnings the dosh will be mine to keep. Even with the tax money in my pocket I am still over £100 light of an IPA (on paper )

    My Life Insurance Policy I have paid the OR £50 so hopefully won't peg it before discharge when the Policy will return to me.

    Virgin Media - my Mobile Phone is still live despite the demise of my Virgin Media Account - just had the latest bill. NOW TV going in next week with broadband - using a prepaid toggle till then.
    Originally posted by Butts

    Wait a minute!


    I thought the only reason why you get an NT tax code is to pay that to the OR.


    Check with them but see here: http://forums.moneysavingexpert.com/showthread.php?t=1972793


    That tax money is going to have to be paid to someone I'm afraid!
    • Butts
    • By Butts 3rd Nov 17, 3:30 PM
    • 157 Posts
    • 51 Thanks
    Butts
    Wait a minute!


    I thought the only reason why you get an NT tax code is to pay that to the OR.


    Check with them but see here: http://forums.moneysavingexpert.com/showthread.php?t=1972793


    That tax money is going to have to be paid to someone I'm afraid!
    Originally posted by StopIt
    I think it depends on the sum involved - if miniscule I believe I will keep it.

    The letter from the IR says "We MAY make a claim to your trustee for the tax that employer would have taken off it if you hadn't been declared bankrupt" In order for that to happen you have to be making payments to the OR via an IPA albeit only an Income Tax one which I am not.
    • bewildered1
    • By bewildered1 3rd Nov 17, 10:51 PM
    • 32 Posts
    • 15 Thanks
    bewildered1
    I think it depends on the sum involved - if miniscule I believe I will keep it.

    The letter from the IR says "We MAY make a claim to your trustee for the tax that employer would have taken off it if you hadn't been declared bankrupt" In order for that to happen you have to be making payments to the OR via an IPA albeit only an Income Tax one which I am not.
    Originally posted by Butts
    I'm not so sure that it's true that you won't have to pay the money to the OR even though you don't have an IPA.

    My advice would be to put the money away until you have had it confirmed from the OR themselves that they don't want it. If the OR decides he/she wants the tax money but you've spent it you could be getting yourself into trouble.
    • Butts
    • By Butts 3rd Nov 17, 11:38 PM
    • 157 Posts
    • 51 Thanks
    Butts
    I'm not so sure that it's true that you won't have to pay the money to the OR even though you don't have an IPA.

    My advice would be to put the money away until you have had it confirmed from the OR themselves that they don't want it. If the OR decides he/she wants the tax money but you've spent it you could be getting yourself into trouble.
    Originally posted by bewildered1
    It costs the OR £150 to set up an NT IPA which is supposed to come out of your first payment.

    If we are talking £30 or £40 month in Tax for 5/6 Months it is hardly worth the risk to them or economically viable.

    The guidance does allow for retention of this sum by the Bankrupt if they are otherwise impoverished and it's addition will not result in being anywhere near eligible for an IPA overall.
    • bewildered1
    • By bewildered1 4th Nov 17, 12:04 AM
    • 32 Posts
    • 15 Thanks
    bewildered1
    It costs the OR £150 to set up an NT IPA which is supposed to come out of your first payment.

    If we are talking £30 or £40 month in Tax for 5/6 Months it is hardly worth the risk to them or economically viable.

    The guidance does allow for retention of this sum by the Bankrupt if they are otherwise impoverished and it's addition will not result in being anywhere near eligible for an IPA overall.
    Originally posted by Butts
    I take it from the info above that you've actually had it confirmed by the OR that they won't be requesting that money from you then. Well that's good to know for future reference.
    • Butts
    • By Butts 4th Nov 17, 4:52 AM
    • 157 Posts
    • 51 Thanks
    Butts
    I take it from the info above that you've actually had it confirmed by the OR that they won't be requesting that money from you then. Well that's good to know for future reference.
    Originally posted by bewildered1
    During my Interview they said an IPA of any variety would not be invoked due to my low earnings and deficit of £160 between Income and Expenditure.

    However you never know.....
    • Flora McDora
    • By Flora McDora 5th Nov 17, 9:27 AM
    • 4 Posts
    • 0 Thanks
    Flora McDora
    Income & expenditure deficit
    You said that you won't have an IPA. because of your income/expenditure deficit after your bankruptcy but didn't they ask (in interview) how you were going to manage with a deficit?
    • Butts
    • By Butts 5th Nov 17, 2:17 PM
    • 157 Posts
    • 51 Thanks
    Butts
    You said that you won't have an IPA. because of your income/expenditure deficit after your bankruptcy but didn't they ask (in interview) how you were going to manage with a deficit?
    Originally posted by Flora McDora
    Strangely enough no. The impression I got as that it was a "tick box" excercise. Provided what you were claiming for as expenses was within the proscribed limits how you were going to fund it was an area not explored.

    They told me they would not be applying for an IPA due to the defecit, although I have not received confirmation of this in writing.
    • fatbelly
    • By fatbelly 5th Nov 17, 3:23 PM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Strangely enough no. The impression I got as that it was a "tick box" excercise. Provided what you were claiming for as expenses was within the proscribed limits how you were going to fund it was an area not explored.
    Originally posted by Butts
    In theory that is the way the process should work now, using theStandard Financial Statement
    • Butts
    • By Butts 11th Nov 17, 4:17 PM
    • 157 Posts
    • 51 Thanks
    Butts
    Just a further update regarding the Virgin Media "Fiasco" where they cut off my service without warning.

    I have now had Now TV Broadband and Home Phone installed without the need for any credit check.

    BT Openreach a subsidiary of BT installed it on behalf of Now TV a subsidiary of Sky TV - how weird is that. They were here for 3 hours on Tuesday and made a damn good job of it. All for the princely sum of £22 paid by debit card in advance.

    My 1st regular payment of £45.99 was taken off my debit card once it went live. For that I get Super Fast Fibre Broadband, Home Phone with included calls to UK Landlines and Mobiles, Line Rental and the basic NOW TV pass.

    For a Bankrupt or anyone with a dodgy credit history I can thoroughly reccomend them. As you pay in advance no credit check required.

    Going back to Virgin - is Virgin Mobile a different company from Virgin Media as my Mobile continues to run okay ?
    • philnicandevan
    • By philnicandevan 12th Nov 17, 8:43 AM
    • 520 Posts
    • 500 Thanks
    philnicandevan

    Going back to Virgin - is Virgin Mobile a different company from Virgin Media as my Mobile continues to run okay ?
    Originally posted by Butts
    different company as far as im aware yep...
    Not quite a newbie as you think (the member formally known as philnicandamy!)

    FINALLY a qualified CAB debt caseworker 2015..
    BSC 58
    • StopIt
    • By StopIt 13th Nov 17, 8:08 AM
    • 1,391 Posts
    • 1,182 Thanks
    StopIt
    different company as far as im aware yep...
    Originally posted by philnicandevan

    Incorrect, ish. Liberty Global bought Virgin Mobile UK in 2013 https://en.wikipedia.org/wiki/Virgin_Mobile_UK


    However, while both owned by LG and operated as a division of Virgin media, officially, they are not the same, which may explain the difference in their policies.


    However, Virgin Media customers can pay for a Mobile contract as part of their overall billing system now, so newer accounts may be affected by this policy in this case.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • fatbelly
    • By fatbelly 13th Nov 17, 8:24 AM
    • 11,528 Posts
    • 8,661 Thanks
    fatbelly
    Incorrect, ish. Liberty Global bought Virgin Mobile UK in 2013 https://en.wikipedia.org/wiki/Virgin_Mobile_UK


    However, while both owned by LG and operated as a division of Virgin media, officially, they are not the same, which may explain the difference in their policies.


    However, Virgin Media customers can pay for a Mobile contract as part of their overall billing system now, so newer accounts may be affected by this policy in this case.
    Originally posted by StopIt
    Off topic, but congrats to StopIt on becoming a board guide!

    I was actually thinking a few days back that you'd make a good one.
    • Jr14
    • By Jr14 13th Nov 17, 11:17 PM
    • 49 Posts
    • 2 Thanks
    Jr14
    How do virgin media find out about bankruptcy? Iíve submitted a DRO - will I be cut off too?
    • Butts
    • By Butts 14th Nov 17, 12:07 AM
    • 157 Posts
    • 51 Thanks
    Butts
    How do virgin media find out about bankruptcy? Iíve submitted a DRO - will I be cut off too?
    Originally posted by Jr14
    By all accounts I was a bit unlucky - hopefully you will be okay
    • Jr14
    • By Jr14 15th Nov 17, 9:05 PM
    • 49 Posts
    • 2 Thanks
    Jr14
    Thanks - fingers crossed
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