Bankruptcy question

garyj123

I am thinking about going br next month with about 30,000 debt. I am currently out of work due to ill health but hoping to get back to work (if there is any jobs out there) next month also.
Someone told me even when i have gone br if i then get a job i would be required to pay some of the debt back out of my earnings??
Is this the casebecause if so i dont see the point of going br??

completemess

You would only pay money (IPA) if there was more than £99 surplus after your incomings/outgoings. You are allowed a lot by the courts to live on for example groceries though so you will probably be surprised.

completemess

The IPA only lasts for 3 years by the way

garyj123

is that £99 surplus per month or weekly?? oh and could you tell me what an IPA is?? thanks
Gary

skintsteve_2

garyj123,

If (hopefully) you do get a job, have a look at you finances. Then make a decision about if or not you want to go BR. If you feel that that's the way to go, then speak to the cccs. They helped me no end. and of course ask advice from here. They are a knowledgeable bunch you know!!!;)

Its £99 monthly...

an IPA is when you have over £100 surplus every month. Once all bills are paid, expenses i.e food, clothing, petrol, etc.. if you have anymore than that then it is an excess amount of money. If it is under that, you should be fine

completemess

Ditto what Steve says, the CCCS have been fantastic.

An IPA is an Individual Voluntary Arrangement and is basic terms is surplus money that is paid via your Official Receiver to your creditors. If you aren't given one before discharge you don't have one x

garyj123

thanks for that, i have spoken to cccs and got all the paperwork and sent out the letters to all creditors telling them they are getting a fiver each every month and not a penny more, works a treat got some breathing space now!.
I think br is going to be a serious option as one of my loans i wont even have paid off in my lifetime, its just goes up and up all the time.
So anyway whats an IPA??

garyj123

Hi completemess, isn't that what you said an IVA not an IPA??

completemess

So sorry it stands for Income Payment Agreement, so sorry for the confusion. Been helping my brother look at IVAs today so got them on the brain xx

garyj123

no worrys, thanks for the advice anyway, just looked further up the thread and someone had actually told me anyway, i am just too fast with the scrolling on the mouse and missed it all.
Cheers
Gary

garyj123

how do they work out how much surplus you have, do u have to send them a fsoa? and see if they are ok about it???