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

tigerfeet2006

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? Yep! that's correct. A NTIPA will only last till the end of the first financial year. See you're getting there.

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One more thing I do not understand...

BR Discharge is automatic after 12 months but what does it mean in real terms? It means the restrictions of BR come to an end and that you can get your credit file cleaned up. You won't have to worry about the OR any more if you don't have an IPA. You can become a director and all the things you may have done before BR. You can start putting time between you and your BR.

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? Yes that's right, but if your income changes you let the OR know within 21 days and the IPA will be adjusted up, down or suspended.

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? Yep see above.

If the above is correct - what is the point of "discharge", what does it actually give anyone? You are released from the restrictions of BR.

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

All the best with it all.

Anna39

BR Discharge is automatic after 12 months but what does it mean in real terms? It means the restrictions of BR come to an end and that you can get your credit file cleaned up. You won't have to worry about the OR any more if you don't have an IPA.

Tigerfeet - priceless again, thanks a lot.

So if no IPA is set up within the first 12 months one can not be set up after the discharge? In this case once discharged one is REALLY debt free and nothing can be taken away after 12 months?

What if the IPA is set up but only on/asNT, financial year ends, there is no money for IPA any more from NT so no more IPA, discharge then (after 12 months) and nothing to pay again?

So if there was an IPA (even if only as NT) it can still be adjusted up or down for future 2 years after the discharge but if there was no IPA in the first 12 months none can be set up after the discharge?

The reason I am asking is that I am very likely to be off sick for 6 months (that would take me to the end of March 09) and not go back to my old job but to look for something else later on when I feel better but this may mean that I will have no income to speak of between end of March 09 and whenever I find another job as at the end of March 09 my entilement to half pay will end and if I do nto have another job by then - I may need to sign on for a while.

Thanks a million.

philnicandamy

an IPA cannot be started after discharge.....this is an agreement arranged while BR & depends on you having a surplus of £99 a month after all household expenses have been paid....this agreement if started BEFORE discharge can be increased/decreased or suspended depending on changes in your finances and you having the mentioned surplus within the 36mnths it runs...and if your not subject to an IPA then yep once your discharged it truly is debt free

Anna39

philnicandamy - thanks, I think I got that but what I do nto get is...

If I have no surplus income as such but IPA is set up on the basis of NT alone, financial year then runs out so there is no more NT for IPA, IPA is cancelled/suspended, few months later discharge happenes (so not IPA at the time of discharge but there was an NT IPA at the beginiing) - in that scenario, can IPA be still be adjusted after the discharge? As originally there would have been the NT IPA...

Actually - does NT qualify as IPA at all?

Hope the above makes sense?

Thanks

Anna39

Actually - does NT qualify as IPA at all?

tigerfeet2006

There are 2 seperate types of IPA.

1: A Nil Tax code IPA which last until the end of the financial year or when you change employment.

2: An income IPA which is based on your surplus income after essential living expenses are taken into account. If one of these is not set up before discharge, it cannot be set up at all. If it is set up before discharge then you will have to deal with for 36 payments from when it is set up.

Hope that makes some sort of sense.

Anna39

Tigerfeet - I got that fine, thanks anyway.

What I am really asking is - if the only IPA that is set up is NT and then it finishes at the end of the Tax Year before the discharge.. can then this be adjusted up or down as a normal IPA if income changes after the discharge at anytime within the 36 months from BR?


From your 1 and 2 above, it looks to me that only normal IPA (surpluss income based) as in yoru point 2 - can be adjusted and exectudted at any time within 36 months of going BR.

Does thast mean that if the only IPA someone has to start with, at the point of BR is NT - does that mean that once discharged, no other IPA can be set up?


I know what I am trying to ask - but I see I make no sense to anyone else... sorry

Thanks a lot

tigerfeet2006

No the NT code IPA is just for your job at the time of BR and will finish at the end of the tax year. If your income goes up during this time then obviously the extra tax will go to the OR. It can not be started again after the end of the tax year.

Yes, if you have no income IPA in place before you are discharged, ED or AD, then one can not be imposed after discharge.

Does that clarify it better.

Anna39

Yup Tigerfeet, thanks for that -exactly what I wanted to knw.
Maybe I should pay that 499 to you personally rather then to OR?

tigerfeet2006

Nah! it's my pleasure, keeps me out of trouble