Post-Bankruptcy Payments (?) HELP NEEDED!

Davemac

Hi there.

I'm in a bit of a post-bankruptcy quandry and would be grateful of any advice as regards my current predicament.

Basically, I was made bankrupt in November 2008 (before which I received excellent advice/help from C.A.B and the good people on this forum).

As my bankruptcy was - admittedly - mainly due to gambling losses, I was told to expect penalties in the shape of a Bankruptcy Restriction Order (BRO) as a result. Sure enough, I received a BRO for 3 and a half years.

All the while, I have been unemployed...until now that is. I am due to start a full-time position on Monday August 3rd.

The guy I have been dealing with at the local Official Receiver's office has been honest enough and helpful on the face of it. He told me that I was to inform the OR when I did find work and that I may have to make some kind of payment back each month out of my wages.

The C.A.B had mentioned this previously, but hinted that it was more of a token gesture and not in any way a particularly huge amount.

Having informed the OR today of my forthcoming employment, he said that forms will be sent out and I will be required to fill in all my expenses - incomings and outgoings each month etc.

HE THEN SAID THAT WHATEVER AMOUNT IS LEFT OVER, AROUND 50% OF IT WOULD BE TAKEN AS A PAYMENT TO THE O.R (and I presume this would then filter through to creditors??). HE ALSO SAID THAT THIS WOULD GO ON FOR A PERIOD OF ABOUT 3 YEARS.

This really took me aback. It also sounded a tad vague. I live at home with my parents, although will be required to pay rent once I'm earning. I have no vehicle to speak of and travel by bus. Although I could 'stretch' my outgoings, the likelihood is, that there will be a surplus of 300 or 400 quid. My wage per annum will be £17,550.

Taking that into consideration, if I am likely to be paying back a couple of hundred pounds EACH MONTH for 3 years, that will run into thousands and almost render my bankruptcy pointless.

Well, 'pointless' may not be the right word, but that's what it feels like. I went bankrupt to avoid having any debt and to start afresh, not to be paying back that kind of money on top of being bankrupt.

Anyway, sorry for the lengthy post, but I need to know whether this is the correct protocol in such cases and what action I need to take - if any. Obviously, the temptation to exaggarate/fabricate my outgoings each month seems a realistic option, but I've played every step of this by the book and - given the legalities involved - thought it best to.

If anyone has been in this situation before or/and can offer some advice, I would be very grateful indeed.

Many thanks for your help.

Dave

copier_guy

Hi Dave,

I know that it looks like your getting a raw deal but look at the positive.

Your debt free, if you looked at what you owed as to what you might have to pay back it might not look that bad.

The IPA can be stopped or reduced if you income drops or your lifestyle changes, ie kids etc.

How much did you owe before BR?

Bethankim

Hi Dave,

Yes thats correct, you will need to do a new statment of affairs. The OR will look at your surplus after your living costs - it is a percentage of the surplus.

The OR has a legal obligation to try and pay your creditors some money - it might feel unfair, but if your circumstances change ie you move into your own place then you would do another SOA and your payments may go down.

it is for a maximum of three years from your bankruptcy if im correct although someone may know more than me.

the difference is that you could have been trying to pay back what you borrowed for years and years and years. the 3 years will be a fraction of what you owed i imagine.
and like i said it can change depending on crcumstance.

well done on your job thats the good bit and taking you forward not backwards.

Davemac

Thanks for that. The employment famine has lasted too long, so it's a huge relief.

I suppose I'll just have to bite the bullet with regards to paying back regular amounts. All part of the deal I guess. Just wanted to make sure I hadn't misinterpreted what the OR has said.

Cheers

Bethankim wrote: »

Hi Dave,

Yes thats correct, you will need to do a new statment of affairs. The OR will look at your surplus after your living costs - it is a percentage of the surplus.

The OR has a legal obligation to try and pay your creditors some money - it might feel unfair, but if your circumstances change ie you move into your own place then you would do another SOA and your payments may go down.

it is for a maximum of three years from your bankruptcy if im correct although someone may know more than me.

the difference is that you could have been trying to pay back what you borrowed for years and years and years. the 3 years will be a fraction of what you owed i imagine.
and like i said it can change depending on crcumstance.

well done on your job thats the good bit and taking you forward not backwards.

Davemac

Thanks for your reply.

I owed around £32,000. I know I should be grateful that I'm not in the position I was in this time last year. It just seems strange and I get the feeling that if I had a whopping big mortgage, 4 kids, 2 cars etc etc, I'd hardly be paying anything back! An exaggeration maybe.

Either way, could be worse.

Thanks once more.

Dave

copier_guy wrote: »

Hi Dave,

I know that it looks like your getting a raw deal but look at the positive.

Your debt free, if you looked at what you owed as to what you might have to pay back it might not look that bad.

The IPA can be stopped or reduced if you income drops or your lifestyle changes, ie kids etc.

How much did you owe before BR?

JCS1

Hi Dave,

Official leaflet here:

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/ipoipa.pdf

Post up your income and outgoings here and people will offer guidance.

HTH

Phoenix1977

Hi. Just a quick question about your BRO. I was made bankrupt a few months ago with about 20% due to gambling in last 2 years. Ive heard nothing about a BRO since and i was wondering how long it took before they told you you were going to get one.
Thanks

Davemac

I went BR last November and it was the end of March before I had an interview with the OR relating to a possible BRO.

I signed the statement and then didn't hear anything until June, when i got it in writing that I would have a BRO for 3 and a half years.

Hope this helps.

Phoenix1977 wrote: »

Hi. Just a quick question about your BRO. I was made bankrupt a few months ago with about 20% due to gambling in last 2 years. Ive heard nothing about a BRO since and i was wondering how long it took before they told you you were going to get one.
Thanks

Phoenix1977

Hope you don't mind me asking, but how much of your debt was due to gambling in % terms. Thanks

Davemac

About 90% !

Phoenix1977 wrote: »

Hope you don't mind me asking, but how much of your debt was due to gambling in % terms. Thanks

Phoenix1977

Thanks. Just trying to get an idea if i am safe yet