Tax code. new job

Dodger61

Thanks Skylight, will go down the honesty is best policy route. Do not want an IPA for 3 years tho! Would a change in your income and IPOQ affect your discharge/early discharge route?

LilyBart

Automatic discharge is in 12 months. This won't be affected by any change in income. If you have to start an IPA, that runs for 36 months regardless of your discharge date. As far as I can see, Early Discharge tends to happen where there are no assets and the case is straightforward.

skylight

Early discharge is not automatic! Mine is a very simple case with no assets and no income, but I haven't got ED!! Still, its only 2 months and 3 days to AD. Not that I am counting or anything............

Changes in income do not affect your discharge date, either AD or ED. A possible IPA imposed will also not affect it at all.

LilyBart

Sure. "Tends to happen" not "will happen", sadly.

Dodger61

Daft question guys. If you are discharged after a year, but have an IPA. After your discharge, if your income changes do you have to let the OR know and do a new IPOQ? or does your IPA figure not alter for the 2 years after discharge?

LilyBart

You have to tell them. If income goes up, you may have to pay more (with the usual adjustments for expenditure, of course). If income goes down, you may pay less. If income goes down drastically, the IPA may be dissolved or, more likely, suspended. Dalip's been through the mill with suspended versus dissolved, so she's the person to ask about that. Similarly, if your rent was suddenly to double, you would need to inform them of that. Same rules as before: any changes in income should be reported within 21 days. Whatever the IPA is, it will be a lot less than whatever you used to pay monthly in debt repayments before going BR. But it does kind of take the gloss off discharge, be it early or automatic.

Dodger61

thanks LilyBart, not much incentive to look for a job then until after AD. As you say, it takes the gloss off discharge. I would still be under the impression I was BR until the 3yr IPA had finished! A BRO looks a far better option, as it is nothing more than a slap on the wrist. Strange how things look different from a different angle. Bear all your comments on board. appreciate your help.

LilyBart

I couldn't disagree more strongly!
You will still keep between 30%-50% of any extra income, should your job pay more than the £99 allowable surplus.
And a BRO is *not* a better option than an IPA, as it extends the conditions of bankruptcy for X number of years, at the OR's discretion.

skylight

A BRO and an IPA run together, if imposed, for their respective terms. A BRO can be implemented up to 15 years. Now, this is reserved for fraud cases and really naughty people, but 3-5 years BRO is more normal if applied.

Your BR is normally only for 12 months, in very rare cases the OR can extend this (again, reserved for naughty people). You may pay into an IPA for 3 years, but you are not bankrupt at all. You do need to still inform (as Lilybart said), the OR of any income changes. An IPA is flexible. Its the A bit = Agreement. So if your income went down or outgoings shot up, then you would let them know for the IPA to be amended. You only start to pay if your surplus, after essential outgoings, is £99 a month or more and you would pay 50% of this. A possible IPA has still got to be better than creditors hassling you and paying them more each month, surely??

Have you actually done an SOA yet outlining your new income?? At least you would get a good idea of whats what.

Dodger61

Have to disagree with you LilyBart. A BRO is a ridiculous piece of legalisation. providing you dont want to

A) Be an MP. - I dont
Insolvenacy Practioner.- I dont
C) Obtain credit over £500 without declaring it. No thanks, had enough of credit, couldnt get it before BR, so no difference now
d) Be a director. - I dont
e) Declared you are BR and trading under the same name.

Nothing more than the OR slapping your wrist. We have to agree to disagree. Hey democracy in action.