Bankrupcy while employed - half pay salary (sickness) and SOA

Anna39

Tigerfeet - thanks again, I have read a lot but still some things make no sense to silly me.

For example - what is it about paying no tax and thise being taken by OR - when/why/how does this happen?

As I will have no surplus income at all while on half pay - is this likely to happen to me?

I have seen people having problems with Housing benefot because of the no tax thing - I am more then likely to have to apply for HB myself.....

tigerfeet2006

When you go BR the HMRC will offer you a Nil Tax code. Any tax you pay will appear in your pay packet. You keep this to one side until you are contacted by the OR's representative and you then pay it to him. This will last till the end of the tax year ie 5th April 09 or you change employers where aupon you will go back to your normal code.

The whole HB thing and NT code is a bit of a lottery. Just about every council seem to understand it but every now and then you get a council who are A holes and there is problems.

Nil tax (NT) coding/IPAs (MSE)

Anna39

Tigerfeet -thanks a millionm again.

When you go BR the HMRC will offer you a Nil Tax code.

When you say "offer" - can this be refused or is it automatic?

Is this in addition to any "surplus" income that the OPR can take percentage of or completely different?

From my SOA I know I will have no surplus income but even on half pay the tax I pay is quite a bit so would that apply in my case? What does the applying NTC depend on as I do not see many people on the board mentioning this - everyone seems to be only talking about surplus income as such.

Thanks again

EDIT - Tigerfeet, forget my blonde moment and more questions - just noticed the link you have posted, readign now cheers.

Anna39

Ok, read about NT - makes sense to me (even at 1.15 am) so thanks again for that just not sure about this bit:

This will last till the end of the tax year ie 5th April 09 or you change employers where aupon you will go back to your normal code.

and

The NT code is applied to all income earned by the bankrupt after the bankruptcy order date, either until such time as there is a change in the bankrupt's source of income, or the tax year in which bankruptcy occurs comes to an end, whichever event is the earliest.

Does the above mean that the NT can only be applied to the end of the first finacial year in which BR happened and not to continue for another 2 years after that?

*****************************?
One more thing I do not understand...

BR Discharge is automatic after 12 months but what does it mean in real terms?

If someone has IPA/IPO/NT - they still have to pay this for 3 years from original BR date, isn't it - even after the discharge?

And the origianl amount of IPA/IPO can still be varied during all those 3 years depending on the income going up or down, right?

If the above is correct - what is the point of "discharge", what does it actually give anyone?

I hope to get my BR sorted before Xmas this year and be discharged before Xmas next year....Fingers crossed

So_Sad_Angel

Anna39 wrote: »

Angel thanks for that.

I should be on the phone to CCCS but can nto bring myself to dial.... will do it at some point this week - still can not believe this is happening.

Hi Anna,

I know what you mean about `cant believe this is happening` ...guess we all feel that at some time. You struggle for years & years ...then something tips the balance! Strangely I was watching the news tonight & when you see the Banks in trouble for over-borrowing then you realise that it really can happen to anyone!!

Good luck & do as Tiger suggests & spend these next few weeks learning & gaining as much knowledge as you can...it will build your confidence.

Hugs, Angexx

So_Sad_Angel

Anna39 wrote: »

Ok, read about NT - makes sense to me (even at 1.15 am) so thanks again for that just not sure about this bit:



and



Does the above mean that the NT can only be applied to the end of the first finacial year in which BR happened and not to continue for another 2 years after that?

*****************************?
One more thing I do not understand...

BR Discharge is automatic after 12 months but what does it mean in real terms?

If someone has IPA/IPO/NT - they still have to pay this for 3 years from original BR date, isn't it - even after the discharge?

And the origianl amount of IPA/IPO can still be varied during all those 3 years depending on the income going up or down, right?

If the above is correct - what is the point of "discharge", what does it actually give anyone?

I hope to get my BR sorted before Xmas this year and be discharged before Xmas next year....Fingers crossed

Sorry Anna......can`t help....at 1.24am my brain is fried!!! I will look again in the morning.

Angex

edit...sorry my post not very helpful really except as `discharged` you are seen as having `spent` the restrictive part (OR controlled) part of your `sentance`...if that make sense.

Anna39

Thanks Ange - insomniac too, huh?

Trying to get my head round IPA and IPO and what is the difference between the two - from the point of the bancrupt?

I guess I may leave it till tomorrow, too tired now.

Hugs back and night night

So_Sad_Angel

Insomia rules !!! thats when I try & do all the rational things like sort the online banking!!!

Its the daytime that I have problems with!!!!

Nite, Angexx

Nigella_2

Has your employer a Benevolent Fund you can apply to for your Bankruptcy Deposit and Court Fees?? Civil Service Benevolent Fund etc. Union Ben Fund etc.
You could ring National Debt Line for advice on the deposit/fees. (if your income is too low you may be able to get a Court fee remission)
Association of Charitable Trusts may be also a help if you have worked for a certain previous employer/grade/ or your current situation. http://www.ncvo-vol.org.uk/askncvo/directory/?id=407

Good Luck!

Nigella_2

Co op basic account is called "CashMinder"

I think "Barclays" are the only other Basic account provider to a Bankrupt.

IPA/IPO normally run for 3 years.