What happens in the days/month following BR

spark1971 · 19 March 2018 at 11:17PM

What happens after you've submitted the form, had the interview etc and the frozen account is unfrozen.
Does the OR keep tabs on your bank account? Can you have a savings account to put aside the monthly amount for the yearly costs included in the SOA such as MOT, dentist etc?
Do you still have to speak with the OR regardless of whether you have an IPA or not?

Any tips for getting through the first year?

National_Debtline · 20 March 2018 at 11:53AM

Hi spark1971

It's hard to give a concise, one-size-fits-all answer, but the fact is that in a lot of bankruptcies, not very much happens at all. The OR won't have the resources to monitor every bankrupt and their accounts regularly - that's why the onus is on you as the bankrupt to report any changes in circumstances that might affect what you pay in.

There's nothing stopping you from having a savings account per se for the sorts of expenses you mention above. I'd recommend though that you do keep bills etc. for any such outgoings in case you are later asked to evidence them.

Don't expect to have a regular dialogue with the OR if you are not subject to an IPA - you may find that following the initial (telephone) interview you have no further interaction with them at all.

Dennis
@natdebtline

Naemoney · 20 March 2018 at 2:41PM

Hi there,

I've had a telephone interview when first made bankrupt and I'm now six months on and I've had a letter with a form asking if my situation has changed and my bank account details for all the accounts I hold. My old account was frozen but I was allowed to keep it open after OR investigated so while that account was frozen I had to open another, so I've had to give the OR access to this.
I would imagine I'll have another review in six months time when I'm due to be discharged.

All the best,
Naemoney

LincsPaul · 20 March 2018 at 3:37PM

Telephone interview the next working day after bankruptcy (1 hour)

Some forms in the post to sign (data protection waiver, acceptance of bankruptcy conditions etc) and main bank account closed within 2 weeks

Nothing for 5 months...

Got a job so told the OR, who didn't respond.

Chased OR and completed new SOA a few weeks later.

Nothing since, not even an acknowledgement of my SOA. 6 weeks to discharge! :beer:

Due to the fact I signed a data protection waiver, it's possible that the OR got my old bank to supply statements for them to look at. It's also possible they didn't bother. At no time have I been asked to supply any bank or credit card statements to the OR, even since I got a job. Neither have they asked me for details of my new accounts opened since bankruptcy (the ones I actually use). Feeling like I've got a pretty easy ride...

J.Nehru · 27 March 2018 at 8:37AM

I had a phone call, asking about details on how the hell it happened. I told the truth. My bank account got locked i was unable to move money in it. So i have to open another account for bank use.

Maverick1103 · 27 March 2018 at 10:50AM

So far I'm about 5 weeks in, it's a pretty surreal experience if I'm honest!

I submitted my application on 19th Feb, which got approved the next working day, I had a phone call with the examiner a week later, which only lasted 25 mins to my surprise and later that week I received an IPA letter stating they wanted me to pay £24 back for 36 months. I challenged this and it got dropped, so had a 2nd letter to state I just need to pay back my Tax to the OR, I signed the form and sent it off. So far I've not heard back but I'm expecting a confirmation letter signed by the OR.

Butts · 27 March 2018 at 3:36PM

Naemoney wrote: »

Hi there,

I've had a telephone interview when first made bankrupt and I'm now six months on and I've had a letter with a form asking if my situation has changed and my bank account details for all the accounts I hold. My old account was frozen but I was allowed to keep it open after OR investigated so while that account was frozen I had to open another, so I've had to give the OR access to this.
I would imagine I'll have another review in six months time when I'm due to be discharged.

All the best,:
Naemoney

I can't believe I'm nearly six months in so will update if I get a letter like yours.

Thanks to the generosity of the OR I have been on an NT Tax Code with no NT IPA for the last five months. (£200+ in my bin)

Will be going back to a Normal Tax Code and paying Income Tax from next month. (good while it lasted !!)

When I was put onto an NT Code the Inland Revenue said they may claim the tax owing from the OR - good luck with that one as they have not claimed it from me and I can't see them coughing from their piggy bank. It costs the OR £150 to set up an NT IPA which comes out of the first payment - I guess they did the maths and figured out it wasn't worth it....Kerching !!!

Despite some of the scare stories on here about Council Tax IPA's I continued to pay the Council as normal with the OR showing no interest whatsoever. Have just started this years payments.

Hoping to serve out the remainder of my sentence until the year is up and I can open up the earnings afterburner post discharge.

Maverick1103 · 28 March 2018 at 11:16AM

Butts wrote: »

I can't believe I'm nearly six months in so will update if I get a letter like yours.

Thanks to the generosity of the OR I have been on an NT Tax Code with no NT IPA for the last five months. (£200+ in my bin)

Will be going back to a Normal Tax Code and paying Income Tax from next month. (good while it lasted !!)

When I was put onto an NT Code the Inland Revenue said they may claim the tax owing from the OR - good luck with that one as they have not claimed it from me and I can't see them coughing from their piggy bank. It costs the OR £150 to set up an NT IPA which comes out of the first payment - I guess they did the maths and figured out it wasn't worth it....Kerching !!!

Despite some of the scare stories on here about Council Tax IPA's I continued to pay the Council as normal with the OR showing no interest whatsoever. Have just started this years payments.

Hoping to serve out the remainder of my sentence until the year is up and I can open up the earnings afterburner post discharge.

I was told that I'd have a problem with my council tax too, but I received next years Council Tax bill last week and my name was on the bill.

Can you eloborate on your NT tax code? Is that £200+ yours to keep as I thought you had to pay the OR?

Butts · 29 March 2018 at 5:44AM

Maverick1103 wrote: »

I was told that I'd have a problem with my council tax too, but I received next years Council Tax bill last week and my name was on the bill.

Can you eloborate on your NT tax code? Is that £200+ yours to keep as I thought you had to pay the OR?

Prior to going Bankrupt (three months before) I reduced my earnings considerably to avoid getting an IPA (General One).

This meant that the amount of Income Tax due fell to around £25 to £50 per month depending on how many hours I worked.

The Inland Revenue put me on an NT Tax Code for the remaining five or six months of the Tax year.

In order for the OR to claim this they have to set up an NT IPA which costs them £150 and that sum is supposed to be deducted from the first payment you would make.

As I am only (or would have been) paying £25 per month in tax the figures do not stack up so the OR has waivied the money by not setting up the NT IPA.

Hence I am the beneficiary. My SOA defecit "on paper" is £160 per month , so the £25 goes towards mitigating this theoretical figure .

What happens in the days/month following BR

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