Bankruptcy. Better to be employed or not?

Drimmer

Firstly, this is an excellent forum and thanks to all for recent replies/advice. My bankruptcy journey is about to begin next week, unless something amazing happens (lottery tonight, oh, no ticket!), and have a question which I would appreciate comments.
My case, as advised by various support networks, should be straight forward however I am currently on benefits (just come off Inc/Benefit now JSeekers) and cannot wait to get back to a job. Already have interviews lined up and possibility of a new contract offer next week. Would accepting possibly put my case into a difficult position where I could be denied or asked to pay contributions. One would assume that it is dependable upon salary and debt, well here we go....32K debt - job pay average 30K per annum.
I want to be off benefits asap as it has been a real eye opener for me and has caused me so much frustration, anyway, its another story.
So, if taking a job means paying back monies and making ends hard to meet each month then that is not really what I wanted, for me the reason I do not want IVA's etc is I have had enough of money matters. Would like to draw a line in the sand and start again, be it with some credit issues etc.

Any comments, would I have to remain out of employment to a certain point to avoid any court requests?

skylight

If you cannot pay back your debts then you will not be denied bankruptcy.

During BR, you complete more SOAs (I&Es) about your income and outgoings. Your outgoings would be a lot more than if you are claiming benefits. Your OR will look at your SOA and decide if there is enough of a surplus left over each month. He will take a percentage of that surplus - not all of it, around 50%ish depending on what is left (if a LOT is left, like £800pm, then the percentage is higher). This will last for 36 months and is called an IPA - Individual Payment Agreement. This IPA is flexible, so if your income goes down or up and/or expenses change then you notify them and the IPA is recalculated accordingly.

An IPA must be in place within 12 months of your bankruptcy date for one to take effect. So, to cast-iron guarantee avoid paying anything, you will have to remain out of work for your entire bankruptcy period of a maximum 12 months.

Paying a small IPA for 36 months is much better than an IVA, debt collectors at your door etc. And I understand how you feel about benefits and how awful to job centre can make you feel. You have to weigh up whats more important. A job on £30kpa and self respect and paying (perhaps) an IPA, or benefits for another year - bearing in mind that a whole year added onto however long you have already been out of work for, does not look good on a CV to employers.

Have you filled out a complete SOA as if you were working for your household?? Just to see whats left over? You could post one up here and we can have a look at what will/wont be allowed etc. More information means you can make a better and informed decision.

Drimmer

Thanks for that, it was exactly what I needed to know and yes, when you look at the option of getting back into the workforce or not, it seems a no brainer. Back to work asap and what happens will happen, it just seems the best option, for me anyway.
I have not filled out an SOA as of yet but shall do and if need further help, will post for assistance.

Cheers