more questions after putting it in the wrong forum!

pielegs

Having read a lot more I was hoping someone could help me with some more questions I have;

If you go bankrupt the literature explains how you might be making payments for upto three years- how is this decided? and what do you have to pay?

Having done that test on the cccs website it suggested I pay £74 per month for the next 19 years. So, do the creditors have to accept this or do they all have to agree for the cccs plan to go ahead? Also, can they change the terms during the repayments and file a petition for making you bankrupt? Finally, does your credit rating improve during this period, and is is quicker than the 6 year alternative when going bankrupt?

I have loads more but they will do for now! Thankyou in advance

peachyprice

An IPA in bankruptcy depens on you having a surplus income over £100 once ALL reasonable living expenses have been taken into account.

You will do an SoA, similar to the CCCS thing, without the debts, on which youy list all your outgoings for a reasonable standard of living, you will net be expected to scrimp or live in poverty.

If you have a surplus once all outgoing have been taken into account you will then pay a percentage of that surplus, not the whole surplus, to the OR. It starts at 50% on £100 rising to a max of 70%.

This lasts for a maximum of 3 years but if your income goes down or up within that time payments can be increased, decreased or suspended.

If you went on a 19 year DMP I don't think your credit rating would improve during that time, the accounts would still be active, but in arrears so would remain on your credit file until paid off plus 6 years.

HTH

fiveyearplan

Here is the link to the SOA calculator. When you fill it in at the bottom click the button to format for MSE and post it on here for guidance.

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

pielegs

thankyou for the help guys much appreciated. Before i do the calculator link, can I just ask a bit more about the 3 year payments which come with bankruptcy....

is it always a 3 year period of making payments once you become bankrupt? can this time be increasd or decreased and in what circumstances does it happen if at all?

thankyou once again.

philnicandamy

No.....the 3yr (IPA/IPO) can vary as peachy explained...before this can come into effect you have to have AT LEAST £100 surplus after your household expenses are paid every month before the OR will consider and then its only a % they would take NOT all spare cash....IF your financial circumstances change while undischarged or in the 3yr period of an IPA the OR needs to be told within 21 days so the IPA can be increased..decreased or frozen if you drop below the £99 mark...and it runs for 3yrs no more no less

For example

pielegs

still confused by the 3 year period though? I understand it can be increased, decreased or frozen but if all these things stary pretty constant, is it always 3 years no more no less?

philnicandamy

IF your put onto an IPA then 3yrs is the time it runs...no more no less unless as mentioned anything changes in your finances

peachyprice

Yes, if your circumstances stay the same it's 36 monthly payments, no more, no less.


SNAP Phil!

pielegs

so where a surplus occurs, a 3 year IPA will always occur no matter what your circumstances no matter what your debt?

fiveyearplan

An IPA can be increased or decreased if your circumstances change.

pielegs

more questions!

I am after some general info on the implications of bankruptcy solely due to gambling. All of my debts are due to my addiction- however all of these debts were from overdrafts, cheque cashing and credit cards obtained between 1 and 6 years ago when I wasnt working and was a student.

I totally agree that I was irresponsible and like I say, my debts are 100% due to gambling. So does this put me on a worse footing than some of the debt stories I have read on here where people have also been unlucky and had a hard time? I do think some of my creditors have acted irresponsibly giving me credit (some of the banks more than once depite defaulting) but ultimately I dont have a leg to stand on regardign being irresponsible- other than what having an addiction does to you and how responsibility goes out of the window.

Ive read some othersites explaining how gambling related bankruptcy can lead to an extended period of bankruptcy upto 15 years. Is this true and what does it mean??

thanks as always.