Renting new / more expensive flat after BR?

Jaxb_2

user1979 wrote: »

What legal powers would the OR have if I had moved, signing a 12 month lease, before informing them of my new address and SOA? I legally have 21 days to inform them of change of circumstances.

In theory (although unlikely) they could delay your discharge date or impliment a BRU/BRO if they think you are trying to pull a fast one.

user1979

Jaxb wrote: »

In theory (although unlikely) they could delay your discharge date or impliment a BRU/BRO if the think you are trying to pull a fast one.

Ah, ok. I think I'd easily be able to show the average rent in the area - which would prove it's not above average rent and certainly not living in luxury thumbing my nose at the OR.

fiveyearplan

I live in a very nice part of London and rents are not as high as that for a one bedroom place. I just think it is unwise to up your rent by that amount when you are not even working at the moment and with the unstable job market - what if you lose your job, how will you pay the rent?

Oldernotwiser

user1979 wrote: »

Because for 12 months I'd rather live in a nicer place than have it taken from my salary to pay an IPA. £1300 pcm is really not a high rent in London (within a half-decent area within zone 4). I have friends in Hammersmith paying £1200 for a one bed flat that isn't very big at all!

That's the sort of comment that gets bankrupts such a bad name.

debtinfo

user1979 wrote: »

What legal powers would the OR have if I had moved, signing a 12 month lease, before informing them of my new address and SOA? I legally have 21 days to inform them of change of circumstances.

presuming that you have moved to stop you getting an IPA rather than for a reasonable reason, The OR could state that the rent is unreasonable and set the IPA anyway, if you did not agree then they could go to court for an IPO. you would obviously not be able to pay this as ordered by the court because of the higher rent you are paying and could fall into arrears. The OR could then go back to court and get an attachment of earnings and take the money directly from your pay, leaving you unable to pay your new rent on your nicer digs.

I say could as it would depend on how the OR saw your explanation, but that is the route the OR has open to them.

Is it worth taking the risk?

Snippa

That's the sort of comment that gets bankrupts such a bad name.

I agree. I work with quite a number of people who've got themselves into financial problems, and who're knocking themselves out cutting back, doing second jobs etc to try and pay back those they owe money to through DMPs and the like. It's all very well to say I'd rather live in a nicer place than have it taken from my salary to pay an IPA, but the IPA is all your creditors will ever see of the money you owe them. A bit unfair to try and deny them even that just for 12 months, if you can pay it, isn't it? Although I guess it comes down to how you feel personally about that, and whether there really is a good reason.

user1979

Snippa wrote: »

I agree. I work with quite a number of people who've got themselves into financial problems, and who're knocking themselves out cutting back, doing second jobs etc to try and pay back those they owe money to through DMPs and the like. It's all very well to say I'd rather live in a nicer place than have it taken from my salary to pay an IPA, but the IPA is all your creditors will ever see of the money you owe them. A bit unfair to try and deny them even that just for 12 months, if you can pay it, isn't it? Although I guess it comes down to how you feel personally about that, and whether there really is a good reason.

An IPA last for 3 years, not 12 months as you have just stated. I think it's reasonable on a personal level to want to get through 12 months of BR and start my life again fresh. I don't really want it all hanging over my head for 2 years AFTER I've been discharged. If that means increasing my outgoing (should I actually be able to get back to work after my redundancy) so that an IPA never starts, I think that's something I should look into.

I also think your reply, and one of the others was very judgemental. You have no idea why I've had to go down the bankruptcy route and my personal circumstances. I'm sure that if people you know who are working second jobs to pay money back through DWP that's because they didn't go down the BR route - had they have gone BR, I doubt they'd be "knocking themselves out cutting back, doing second jobs etc".

debtinfo

I think snippa's response was very balanced, in pointing out both sides of the equation. It was not at all judgemental in pointing out that seeking to unfairly (and i say unfairly as the OR will be quite prepared to allow you what you need to live) avoid an IPA is wrong. An IPA is part of of the bankruptcy process and it is quite right that those that are fortunate enough to be in a position to repay some of the debt that went into the bankruptcy, regardless of their reasons for being in this situation in the first place.

user1979

If I go back to work (which is my intention) I will be paying a lot in Tax and National Insurance, I have absolutely no problem with paying into the system - especially being a leftie.

However I want this whole saga over in 12months, not 3 years. I could do this by not working and continuing to live on benefits until dischared. I'm not prepared to do that. So if it means renting somewhere for slightly more per week when I do have a job and not having an IPA initiated within the 12 months, then that's something I'm prepared to do. My creditors were one bank and one credit card - both included a lot of fees that they wouldn't refund, so I have no sympathy for them not picking up a few quid per month from an IPA. I'm not going to go into my family situation behind my debts on this forum, and I'm not on here asking for sympathy - I simply asked if anyone had experiences in a similar rental situation.

fiveyearplan

I hate to break it to you but bankruptcy stays with you for LIFE!! It doesn't end at discharge, there are places you will have to divulge your BR forever - like insurance companies for one. The bankruptcy system is a fair system and one that you knew, or should have known, before you entered into it. 12 months or 36 months is a small price to pay to have your debts cleared.