Wages after bankruptcy order

bobby81_2

Hi

My petition for bankruptcy has been set for 19th February and am confused as to what can happen to my future wages after the order is made (if accepted).

I have absolutely no assets and my only assets will be my wages and state benefits. Can/does the Official Receiver take control of my wages until the discharge date or can he enforce an order where a certian percentage of my wages goes straight to him so that can be shared amongst my creditors?

FYI I am only on a temporary contract until July 2009, so what would happen then if I do not find employment and have to sign on for JSA?

I would appreciate advice from anyone in the know or anyone who has gone through bankruptcy as I am worried and confused especially with the hearing just under 2 weeks away.

Many thanks in advance

Bobby

dalip

Hi Bobby

If, after all your reasonable living allowances,you have a surplus income of £99 the the OR will send you an IPA proposal to sign. If you do not agree with the amount proposed you can contest it.If the OR wanted he could then apply to court to enforce it, which is called an IPO. The IPA(if one is set up) will last for 36 months but can be altered to reflect you circumstances. If in july you contract does finish and you are only on JSA and if an IPA has been set up, it would get suspended.

Any months that an IPA is supended for count towards the 36 months.

You are under a legal obligation to notify the OR of any change in circumstance within 21 days.

Can i ask have you taken advice from anyone as to your bankruptcy?

If you wanted to, you could post your income and expenditure up here and we can tell you roughly what the OR will and won't allow. If you decide to let us tweek it for you we would need to know the number in household,,any benefits and what they are for,if only you in the household are going bc. Hope that helps a little.

Anything else you are unsure about just ask.Dx

bobby81_2

Hi D thanks for the reply

I wanted to set up an IVA and was about to sign the paperwork when National Debtline told me this was not allowed due to the fact I am only temporary employed and IVA cannot be set up if the future remains uncertain.

National Debtline said bankruptcy is ONLY option unless I want to negotiate with my creditors. Mint and Egg said any negotiations will remain on my credit file for six years and Mint was extremely honest and told me to try for bankruptcy and get a fresh start.

My total debt is £29k, I live with my parents so no bills like coucil tax, electricity etc. My benefits stop in Novemeber 2009 as it is a government incentive to return to work as I have been unable to work due to ill health for majority of last 4 years.

My in goings are per month:-

Wages (take home) £650
Benefits £160
Total £810

Outgoings:-

Rent £200
Living expenses £200
Credit card repayments £650

Total £1050

This leaves me with a deficit of £240 a month. If bankruptcy is approved I would now have £400 surplus a month which I susepect OR will take £300 of this amount.

Hope this helps. I want bankruptcy to be last option as I do not really want to go to court and secondly I am thinking about my job options for the next 6 years as bankuptcy stops me applying for a certain amount of jobs.

Bobby

Kiada

Bobby, I'm in the same sort of position as you (kind of.). I've been unable to work since the start of 2007 due to ill health, and before that (quite stupidly) accrued debts of around £12,000 (im nearly 23)

I've sinced moved house (out of my parents) and am yet to face up to my problems with regards to money, and wouldnt even know where to start as I have no idea who I owe and how much anymore. I am on state benefits alone (income support with a disability premium) for me and my girlfriend.

I'm interested to hear how this all pans out and works as this is the first time I've looked at this section of the board / even considered bankruptcy.

Worst bit about it is I've got a pretty good idea for a business which has the potential to earn some serious money, but I'm at odds where to start with regards to startup financing :-(

dalip

Bobby what you have put down is a very tight budget aimed at repaying your creditors. With bc allowances are far more generous. My next post will be with a view to bc and what we see here as being allowed. Your bc will be accepted if your outgoings are more than your income and you have taken advice.Dx

dalip

bobby81 wrote: »

Hi D thanks for the reply

I wanted to set up an IVA and was about to sign the paperwork when National Debtline told me this was not allowed due to the fact I am only temporary employed and IVA cannot be set up if the future remains uncertain.

National Debtline said bankruptcy is ONLY option unless I want to negotiate with my creditors. Mint and Egg said any negotiations will remain on my credit file for six years and Mint was extremely honest and told me to try for bankruptcy and get a fresh start.

My total debt is £29k, I live with my parents so no bills like coucil tax, electricity etc. My benefits stop in Novemeber 2009 as it is a government incentive to return to work as I have been unable to work due to ill health for majority of last 4 years.

My in goings are per month:-

Wages (take home) £650
Benefits £160
Total £810

Outgoings:-

Rent £200
Living expenses £200break these down. You would be allowed about £180 for food alone.
Credit card repayments £650

Total £1050

This leaves me with a deficit of £240 a month. If bankruptcy is approved I would now have £400 surplus a month which I susepect OR will take £300 of this amount.

Hope this helps. I want bankruptcy to be last option as I do not really want to go to court and secondly I am thinking about my job options for the next 6 years as bankuptcy stops me applying for a certain amount of jobs.

Bobby

Ok how about haircuts £10,any car expenses?,health(dentist,opticians,perscriptions) add another £25,pets £20,Dry cleaning £20,Clothes £40,holidays £40,Mobile £20,if no car, travel expenses,meals at work the list goes on......See you have little or no surplus;) .Now repost with the above included.Dx

patsypat911

Bobby you will need to seek advise from a debt charity like CAB, CCCS or debtline as the clerk or judge will ask if you fully understand the consequences of BR and which organisation you took advice from.

complete your SOA from this link:

http://www.makesenseofcards.com/soacalc.html

then copy it to a new thread and experts will be along to help out. You will need to list all I&E so it is very clear to the OR to calculate if you have enough surplus for an IPA or not.

shaunnortheast

Ive spoke cccs bankruptcy was the way i was advised to go was ment to be in court on the 9th couldnt afford the fees rescedueled for the 25th still looks bad may have approx £200 by then, Ive canceled all my direct debits and am not making any paymnt towards my debts should i continue to do this as it may take me a while or should i send token payments??

your advice please

dalip

Shaun if you have any credit left anywhere draw that off and use that.Creditors usually take a couple months before they get really heavy.Dx