To declare wage rise to OR whilst on IPA?

AndyAtkins

Hi all, I'm not to experienced with forum posting but this looked like the right place to come to. I declared myself bankrupt in December 08 and have since been paying 320 every month trowards the IPA. Originally I thought the OR would ask me to pay around half of that but the lady who interviewed me and also wrote to me regarding the IPA was rather stubborn and decided that I shouldnt have 160 available for my car and that I should get the bus instead...this has made my experience a little more stressfull but hey, i'm finally out of debt and i guess 6 months away from being discharged unless they write to me for an early discharge....

Anyway, to get to the point and my question, I've just been given a promotion at work which comes with a wage rise of about £325 per month after tax. At fierst I was delighted that my hard work has been recognised, however after thinking about it I doint know whether to be happy or sad! One way of looking at it is that I have to work harder for the same money as once I declare it to OR, (and the the stubborn interviewer in charge of my case) that'll be nabbed by the IPA. My girlfriend and I are counting the days until I get discharged and can finally find a property and make a life.

If I have to give £500 -600 away every month for the next 2.5 years then I will not be able to afford to rent/mortgage a property and make a life. I feel like not declaring my wage increase to the OR as I've worked hard for it and need the money for my future.

What is the punishment if I risk not telling the OR? Anyone tried it?

Will the OR find out anyway because of my nil tax code?

Yours, Andy

Merry_Gentry

Hi Andy

You signed an undertaking to inform the OR within 21 days of any rise in income. Yes, they will find out - from your nil tax code, etc so it's not worth taking the risk, it really isn't. I can understand why you would be reluctant, but that's the reality of the situation. Sorry.

AndyAtkins

thanks merry.

Tell me - if they find out anyway from the nil tax code then why do I have to inform them anyway?

Just interested what would be the consequences if I didnt tell 'em....

peachyprice

The consequence would be suspended discharge while they investigate you, if you don't co-operate discharge would be suspended indefinitley.

When you tell them about your wage rise you will be given a new form to fill in, you can also add any rise in outgoings. I'm sure lots have things have gone up since December.

As for your question has anyoine tried it, yes, we do have a member who didn't tell the OR about rise in income for about 4 months, AFAIK they're still not discharged.

Merry_Gentry

Why would you not tell them? You signed a legal document committing to complying with the Official Receiver - why would you take the risk inherent in not doing this?

JCS1

and the worst case would be a BRO/BRU for failure to co-operate.

Merry_Gentry

If you're really not happy with the IPA remember that it's an "agreement" - you can challenge the OR if you feel it is too harsh. Now is an opportunity to do so as you will need to complete a new SOA and everything.

AndyAtkins

Thanks for your help guys. I'm living with parents and my father is also struggling with the bills - is it realistic for me to say my rent has gone from 350 to 500? And housekeeping from 250 to 300? Also never had holiday expense down on my form- is it cheeky to ask for 20 a month?

DON79

hi, you can do another soa and post it up here so we can help with any amounts which are too low/high? www.makesenseofcards.co.uk/soacalc.html

might help you to minimise the loss a little bit.

dmg24

DON79 wrote: »

hi, you can do another soa and post it up here so we can help with any amounts which are too low/high? www.makesenseofcards.co.uk/soacalc.html

might help you to minimise the loss a little bit.

Surely honesty would be a better policy, as opposed to 'minimising the loss a little bit'? :rolleyes:

AndyAtkins

OK here goes what I will send the OR after my wage rise....

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1936
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1936
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 100
Council tax............................. 30
Electricity............................. 18
Gas..................................... 18
Oil..................................... 10
Water rates............................. 10
Telephone (land line)................... 20
Mobile phone............................ 30
TV Licence.............................. 6
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 300
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 260
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 1412

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,936
Expenses (including HP & secured debts). 1,412
Available for debt repayments........... 524
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 524
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0