Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Skintnorthernmonkey
    • By Skintnorthernmonkey 30th Nov 17, 11:00 AM
    • 20Posts
    • 1Thanks
    Skintnorthernmonkey
    Change of income during bankruptcy
    • #1
    • 30th Nov 17, 11:00 AM
    Change of income during bankruptcy 30th Nov 17 at 11:00 AM
    So I have a question.

    I am currently not paying tax, and what tax I would have paid goes to the RO. I'm happy with that. I pay nothing extra, we are close to the breadline with the household income and the RO did not request any additional money (indeed she commented that it was a rather "lean" budget).

    However, if I get a new job before the bankruptcy discharges for a higher salary, what happens then?

    I am given to understand that I would have to inform the RO about the increase in salary and an arrangement would be made to pay towards the creditors, and that lasts 36 months. So, if I took a new job before discharge, with a higher salary, I would then have to give anything extra I earned above what I currently earn for 36 months from taking the new job, no matter how far into the bankruptcy I am?

    Would the RO take ALL of the difference?

    It is worth pointing out that my OH income is less than we had budgeted for (she took a new job just as the bankruptcy went through), and with the new job my childcare costs etc will rise considerably. Coupled with the OH wanting to try for a baby, it makes things rather less than straight forward.

    I would love some advice on this.
Page 1
    • haggis0073
    • By haggis0073 30th Nov 17, 11:09 AM
    • 42 Posts
    • 16 Thanks
    haggis0073
    • #2
    • 30th Nov 17, 11:09 AM
    • #2
    • 30th Nov 17, 11:09 AM
    i presume when you notify the OR of your change of income he/she will ask you to fill out another expenditure form, you can then readjust your figures.

    How long have you been bankrupt? it could be worth waiting till after discharge before getting new job, as after discharge (normally 1 year) the OR cannot issue you with an IPO/IPA
    • Skintnorthernmonkey
    • By Skintnorthernmonkey 30th Nov 17, 11:33 AM
    • 20 Posts
    • 1 Thanks
    Skintnorthernmonkey
    • #3
    • 30th Nov 17, 11:33 AM
    • #3
    • 30th Nov 17, 11:33 AM
    three months. I could pray for an early discharge I suppose? Maybe put it on my Christmas list.

    Trouble is you can't really "wait" to get a new job. You take the opportunities when they come up, you can't say "Yes I'd love that job, please can you wait for 9 months before employing me though?"
    • haggis0073
    • By haggis0073 30th Nov 17, 1:20 PM
    • 42 Posts
    • 16 Thanks
    haggis0073
    • #4
    • 30th Nov 17, 1:20 PM
    • #4
    • 30th Nov 17, 1:20 PM
    totally understand, well with the increase in your income and the decrease in your partners, plus the added cost of childcare then your expenditure could possibly even out, i would defo re-do your expenses and income and maybe post it up for the more experienced people to view it and get their proffesional opinion on it
  • National Debtline
    • #5
    • 30th Nov 17, 2:06 PM
    • #5
    • 30th Nov 17, 2:06 PM
    Hi there


    three months. I could pray for an early discharge I suppose? Maybe put it on my Christmas list.
    Originally posted by Skintnorthernmonkey

    I understand this is slightly tongue-in-cheek, but it's worth pointing out that there is no such thing as early discharge these days - it's 12 months as standard in all cases.


    Dennis
    @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
    • Skintnorthernmonkey
    • By Skintnorthernmonkey 30th Nov 17, 2:22 PM
    • 20 Posts
    • 1 Thanks
    Skintnorthernmonkey
    • #6
    • 30th Nov 17, 2:22 PM
    • #6
    • 30th Nov 17, 2:22 PM
    Hi there





    I understand this is slightly tongue-in-cheek, but it's worth pointing out that there is no such thing as early discharge these days - it's 12 months as standard in all cases.


    Dennis
    @natdebtline
    Originally posted by National Debtline
    Indeed it was tongue in cheek, I know the early discharge was repealed in 2013 - just in case anyone reads this thread and thinks "Ooohhh, there's a chance I might get out early!"
    • Skintnorthernmonkey
    • By Skintnorthernmonkey 30th Nov 17, 2:22 PM
    • 20 Posts
    • 1 Thanks
    Skintnorthernmonkey
    • #7
    • 30th Nov 17, 2:22 PM
    • #7
    • 30th Nov 17, 2:22 PM
    totally understand, well with the increase in your income and the decrease in your partners, plus the added cost of childcare then your expenditure could possibly even out, i would defo re-do your expenses and income and maybe post it up for the more experienced people to view it and get their proffesional opinion on it
    Originally posted by haggis0073
    Thanks. I may well do that!
    • Skintnorthernmonkey
    • By Skintnorthernmonkey 1st Dec 17, 7:53 AM
    • 20 Posts
    • 1 Thanks
    Skintnorthernmonkey
    • #8
    • 1st Dec 17, 7:53 AM
    • #8
    • 1st Dec 17, 7:53 AM
    Another question.

    I have 22 days to report a change of circumstances financially, for better or worse. Since our situation isn't as good as we had hoped, but I've not said anything because we are kind of managing and there's not much else to be done, we just muddle through.
    Is there a mechanism by which the RO will "know" or "find out" our income or otherwise find things are different to declared? Likewise for changing jobs for an increased (or indeed decreased) salary (the joy of fixed term contracts!).
    Does the notification period of 22 days (I think its 22?) start from starting the new job, or from your first wage? And other than your obligation to inform, I presume the RO periodically reviews your finances? Checks your transaction history etc? Or is that not how it is done?
    • silvercar
    • By silvercar 1st Dec 17, 8:24 AM
    • 36,207 Posts
    • 153,059 Thanks
    silvercar
    • #9
    • 1st Dec 17, 8:24 AM
    • #9
    • 1st Dec 17, 8:24 AM
    The obligation is on you to notify a change of circumstances within 3 weeks of it occurring. This is generally taken to be within 3 weeks of the first paycheck landing, as your finances won't change until the money is in your hand/ bank account.
    • Skintnorthernmonkey
    • By Skintnorthernmonkey 1st Dec 17, 2:30 PM
    • 20 Posts
    • 1 Thanks
    Skintnorthernmonkey
    I thought as much - that makes more sense.

    Well, for now I shall keep paying the amount I am supposed to until the end of the tax year, and from there I suppose I just sit tight and wait for the bankruptcy to discharge?

    I haven't heard anything form the RO really since. I suppose that is a good thing? From the RO's point of view, would it be just the case that my file is now "on the pile" dealt with and done? Can I expect to hear from them again?
    Last edited by Skintnorthernmonkey; 01-12-2017 at 2:32 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,988Posts Today

6,456Users online

Martin's Twitter