Question from my Husband

louisaL

as i said in another thread we have an appointment with payplan tonight but my husband is asking for me to put a question out for him

after you are made bankrupt you then have to pay money still to your creditors - true or false?

if so what is the point in going bankrupt? rather than paying the minimum amount?

this is information from what his been told and doesnt know the full facts about it

kew63

You may after BR have to pay towards an IPA for upto 3 years, which may go towards paying your creditors, but equally may be used to pay for the cost of your BR to the Insolvancy service.

An IPA is only given if you have anough surplus, over £99 and unlike IPA's or DMP's it is not the whole surplus, it's about 50-70% of the surplus.

Also the allowances under BR tend to be more generous, and unlike DMP & IVA which are controlled by your creditors telling you how much you can have to live on.

Get him to start reading through the BR forum he'll soon see what an IPA means and whether you'd be worse off or not.

skylight

True... and false!

Right. I think that he perhaps is getting confused with an IPA - Individual Payment Agreement.

All your debts in BR are "written off" and you do not pay them anymore. You are no longer responsible for them. They have gone.

Now, your official receiver has a duty to realise as much as possible from your assets to go towards your creditors (and its his responsibility to do this and not yours). What they "may" do is impose an IPA so you pay a contribution back. This is worked out by looking at your SOA and deducting your essential expenses from your income. Whats left is your surplus and you may pay a percentage of that (its starts if you have a surplus of £100 or more per month and they take 50% of that). This IPA lasts for 36 months.

An IPA is far favourable than to paying creditors you can ill afford in the grand scheme of things. If you are currently able to make minimum payments on your debts (and pay other bills without getting further into debt) then you have to question whether you are insolvent.

I do think your OH is just a little confused as to whats what.

rog2

Hi again, louisa.

I'm not sure who has been giving you this information/advice, but, whilst it may have been given with the best of intentions, it is not exactly correct.
This is one of the questions that you need to ask Payplan this evening.
True that if, after deduction of allowable and reasonable living expenses, there is sufficient surplus disposable income, you/he would be given an IPA/IPO (Income Payment Agreement/Order) whereby a percentage of that disposable income would, indeed, be payable to the OR.
Such IPAs/IPOs are, usually, imposed for a maximum period of 36 months, and would be subject to review (up or down) if the bankrupt's personal circumstances change.

skylight

And as an addition, I think your OH is being "told" information by well meaning people who know nothing; hence the confusion!

louisaL

thank you so much for clearing that up sounds much better!!

i think we're just wondering which is the best way to go. but again we'll speak to payplan tonight

regards all xx

rog2

louisaL wrote: »

But again we'll speak to payplan tonight

How did you get on?

louisaL

hi thanks for thinking of me. we spent 2hrs with payplan last night. she then passed on the information and said the assesser would ring us in 5-7 days but surprisingly we got a call today.
by re-evaluating our outgoings she found we had £60 surplus.
she said we must offer all our creditors £1 a month until our outgoings lower (as most of our utilities are in arrears).

she said there would be no need to go BR until we've at least tried with a DMP. but did tell me that 99% your house does get taken off you if you go BR which worried me.

so there you go not surely how i feel with the unforeseeable future only paying £1 but its something i guess!

pmg19680

louisaL wrote: »

hi thanks for thinking of me. we spent 2hrs with payplan last night. she then passed on the information and said the assesser would ring us in 5-7 days but surprisingly we got a call today.
by re-evaluating our outgoings she found we had £60 surplus.
she said we must offer all our creditors £1 a month until our outgoings lower (as most of our utilities are in arrears).

she said there would be no need to go BR until we've at least tried with a DMP. but did tell me that 99% your house does get taken off you if you go BR which worried me.

so there you go not surely how i feel with the unforeseeable future only paying £1 but its something i guess!

but just wanted to say well done on the weight loss. Debt is loads to cope with but losing weight aswel is a real acheivement :beer:

tigerfeet2006

Louisa do me a favour and pop up your SoA please

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

Want to just look at it as an OR may.

If you are in negative equity then you probably won't lose the house but with out knowing more it is hard to tell.

Please can you also ring National Debtline tomorrow and get a second opinion. They are open 9am to 9pm but are busy so you may have to hold for a while, just make yourself comfy witha cuppa.

louisaL

thank you pmg what a lovely thing to say xx

thanks tigerfeet my husband would like a 2nd opinion if its ok i'll pm you it though as i dont really want people i know who use this site knowing the full expenditure