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  • FIRST POST
    • littlestar24
    • By littlestar24 6th Oct 16, 4:48 PM
    • 1Posts
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    littlestar24
    what if you have quite a bit of surplus income
    • #1
    • 6th Oct 16, 4:48 PM
    what if you have quite a bit of surplus income 6th Oct 16 at 4:48 PM
    Hi Would like to know in practise, what happens if you have a lot of surplus income to go towards an IPA, do you have to pay all of that surplus or do they leave you a little bit? Thanks
Page 1
    • Stevie Palimo
    • By Stevie Palimo 6th Oct 16, 4:53 PM
    • 2,860 Posts
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    Stevie Palimo
    • #2
    • 6th Oct 16, 4:53 PM
    • #2
    • 6th Oct 16, 4:53 PM
    If it is for an IVA then by rights your income will have been evaluated prior to it starting unless your income fluctuates each week/month in which case I would ask advice from a professional.

    I'd be pretty sure this will be covered under the agreement whereby you have to state any additional income that have and gain.
    " I refuse to censor myself because it may offend someone. If you don't like me that's ok, I don't need your approval. "
  • National Debtline
    • #3
    • 6th Oct 16, 5:16 PM
    • #3
    • 6th Oct 16, 5:16 PM
    Hi

    You would have to pay all of it, so make sure you complete the financial statement to cover all of your essential living costs in a realistic and sustainable way.

    There is some useful information on IPAs here:
    www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/asked-to-make-an-income-payments-agreement/

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • NotEvanAPot
    • By NotEvanAPot 7th Oct 16, 6:35 AM
    • 216 Posts
    • 122 Thanks
    NotEvanAPot
    • #4
    • 7th Oct 16, 6:35 AM
    • #4
    • 7th Oct 16, 6:35 AM
    Any and all surplus will be recovered under an IPA in bankruptcy.

    A certain amount, in ratio to debt total, would put a question on bankruptcy being the feasible option. It is there as a legal protection for those who have no other alternative. Should a large enough surplus exist on the application income and expenditure form, it can be rejected.

    Speak with one of the debt charities about this if you are pre-application, otherwise the discussion with the OR will centre around recovering anything that is not covering basic living expenses. James @natdebtline is absolutely correct in saying you will need to ensure they are recorded correctly, but do not be tempted to inflate areas as the OR have fair strict limits depending on circumstances of household.
    • dojoman
    • By dojoman 7th Oct 16, 8:07 AM
    • 11,883 Posts
    • 17,162 Thanks
    dojoman
    • #5
    • 7th Oct 16, 8:07 AM
    • #5
    • 7th Oct 16, 8:07 AM
    Any and all surplus will be recovered under an IPA in bankruptcy.

    A certain amount, in ratio to debt total, would put a question on bankruptcy being the feasible option. It is there as a legal protection for those who have no other alternative. Should a large enough surplus exist on the application income and expenditure form, it can be rejected.

    Speak with one of the debt charities about this if you are pre-application, otherwise the discussion with the OR will centre around recovering anything that is not covering basic living expenses. James @natdebtline is absolutely correct in saying you will need to ensure they are recorded correctly, but do not be tempted to inflate areas as the OR have fair strict limits depending on circumstances of household.
    Originally posted by NotEvanAPot
    Sorry but not sure what you mean by this?
    B&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
    • NotEvanAPot
    • By NotEvanAPot 7th Oct 16, 8:19 AM
    • 216 Posts
    • 122 Thanks
    NotEvanAPot
    • #6
    • 7th Oct 16, 8:19 AM
    • #6
    • 7th Oct 16, 8:19 AM
    Let's say debts of £30,000 on a bankruptcy petition, and I&E shows £500 surplus. If the interest on the debts can be frozen, this would make repayment possible over 5 years. In this situation, bankruptcy would not be the best option and an application can be rejected because of it.

    The creditors would be significantly disadvantaged if an application was accepted, because the maximum recoverable would be fixed to 3 years under an IPA (£18,000 to divide between).
    • MEM62
    • By MEM62 7th Oct 16, 10:03 AM
    • 964 Posts
    • 632 Thanks
    MEM62
    • #7
    • 7th Oct 16, 10:03 AM
    • #7
    • 7th Oct 16, 10:03 AM
    If you have that much of a surplus are you sure that bankruptcy is the correct course of action for you? Have you taken debt advice?
    • luvchocolate
    • By luvchocolate 7th Oct 16, 11:10 AM
    • 1,139 Posts
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    luvchocolate
    • #8
    • 7th Oct 16, 11:10 AM
    • #8
    • 7th Oct 16, 11:10 AM
    I believe the above post is giving an example and not what the op has asked.
    Of course in that example case B.R would not be advisable.
    • NotEvanAPot
    • By NotEvanAPot 7th Oct 16, 11:27 AM
    • 216 Posts
    • 122 Thanks
    NotEvanAPot
    • #9
    • 7th Oct 16, 11:27 AM
    • #9
    • 7th Oct 16, 11:27 AM
    I believe the above post is giving an example and not what the op has asked.
    Of course in that example case B.R would not be advisable.
    Originally posted by luvchocolate
    The first sentence of my first post is pretty clear though:

    Any and all surplus will be recovered under an IPA in bankruptcy.
    • worriedmamma
    • By worriedmamma 7th Oct 16, 11:32 AM
    • 147 Posts
    • 56 Thanks
    worriedmamma
    It's worth posting an SOA with your debts amounts etc so that people can see the full picture for an accurate answer I guess.
    • dojoman
    • By dojoman 9th Oct 16, 10:18 AM
    • 11,883 Posts
    • 17,162 Thanks
    dojoman
    Let's say debts of £30,000 on a bankruptcy petition, and I&E shows £500 surplus. If the interest on the debts can be frozen, this would make repayment possible over 5 years. In this situation, bankruptcy would not be the best option and an application can be rejected because of it.

    The creditors would be significantly disadvantaged if an application was accepted, because the maximum recoverable would be fixed to 3 years under an IPA (£18,000 to divide between).
    Originally posted by NotEvanAPot
    Forget about the interest, the surplus could be because they will not be paying anything back to the creditor, the amount of surplus left if still servicing the debt would be a lot less than the amount quoted. This happened to me and I was left with a substantial amount left as surplus, whilst servicing the debt I was in a negative situation. I ended up with an IPA but this was before all the surplus was taken.
    B&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
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