BRO orders - need help

Arfhurdaly

I plan on going bankrupt in the new year, and I expect to be hit by a BRO order on top of bankrupcy. I read these can last 2-15 years.

Can anyone tell me what is the typical length of the order? On top, does having a BRO prevent early discharge from Bankrupcy.

nervousmother

It depends what you have done as to the length and it also depends on how co-operative you are with the OR.
If you agree to it it is called a BRU (undertaking)

http://www.insolvency.gov.uk/databases/ddirector/viewbrobrudetailslatest.asp

Have a look what others have got and for what reason

Arfhurdaly

Thanks. That is a great help.

Another question: If you get a BRO, and you earnings increase during bankrupcy, can the surplus be used to pay back creditors?

nervousmother

The BRO has no bearing on this.

If you have enough surplus income to pay a IPO and your income increases then the IPO increases too.
If you had £99 surplus after all your essential expenditure you would not pay an IPA however if you had £100 you would pay £50

TO ADD:
if you did not get a IPA/O and then were discharge from BR, even if you had a BRU for 15 years you would not pay. An IPA can only be set up during your BR

nervousmother

IPO= income payments order
IPA= income payments agreement

post your SOA so we can be sure your claiming the right amounts.

for instance, if your single you can claim £200 housekeeping, £10 hair cuts, £40 clothes £35 phone, £12 tv licence, contents insurance, gas, electric, council tax, rent, mortgage, medical, holiday £30 single person, dry cleaning if needed for work, travel.. list goes on
depends on your circumstances

Arfhurdaly

Thanks. You have been a great help.

kralas

Hi,

I've been bankrupt since May, and it took until september for them to start it, and because I had (according to them) £179 spare, they made me sign up for a £90 IPO..... however... I recently had to borrow some money from a relative to buy a car, which means that I can claim the repayment as a monthly outgoing. Quite odd isn't it that I can't keep it unless I spend it before I have it!!!

Arfhurdaly

How long does your IPO last for?

nervousmother

a IPA lasts for 36 months from the date it started. It can be suspended if your income drops, it can be both decreased and increased according to your income

kralas

Mine is three years. My ex wife who also went bankrupt was using all her income up when the bankruptcy was being processed and she didn't get one at all. It's because I had surplus income at the beginning of the bankruptcy. The idea would be to more than account for every penny before you go bankrupt.

kralas

If you get bonuses after the first year with work, they aren't counted, only your basic/regular salary as I found out today.