IPA help :(

mad_bad_spender

I was declared bankrupt on 20th of August using the LILA bankruptcy in Scotland.. I had a phone interview today to discuss my income and expenditure and this has really thrown me so Im hoping you can maybe answer some questions for me please??

I had been advised by citizens advice that by going down the LILA route i would not be eligible to make any payments under a IPA/IPO.. I was advised today that this was infact incorrect.. they have decided that i have a disposable income of £211 per month and are requesting that this is the amount i pay them each month. After reading online I am under the impression that it should only be between 50 and 75% of this would be requested but they adamant it would be the full 100% or £211 leaving me nothing for emergencies etc.

Am I incorrect or are the rules different in scotland?? i have to say they did allow the sky tv and my gym membership to be included in the expenditure which i was surprised at because i hadnt thought they would??

Also they had asked whether i had owned any property in the last five years.. i did jointly own a property with my ex and signed this over to him two years ago when i left the family home. i couldnt have afforded to stay and make the mortgage payments so i signed this over to him for an amount not totalling my share of the equity. i did this for the benefit of him and my kids so they retained some security. I am really concerned they are going to try to reverse this decision.

Does anyone have any experience of being in this situation with having signed over property?? I guess i am wondering what the likelyhood is of them trying to reverse this decision. i did consult a solicitor at the time and this was all drawn up legally so what are the chances of this being reversed??

Thanks in advance for any help

hattybee

Yes, the AiB can ask you to pay a contribution even though you have gone down the LILA route to bankruptcy.
If you receive certain benefits - income support, income-based jobseekers' allowance or working tax credits - you will be treated as meeting the low income test, even if your actual income is more than the LILA maximum amount.
The AiB will also take into account the income of other wage earners in your household, when deciding whether you should pay a contribution, as it is assumed that they contribute towards household costs.
They can ask for the full amount – but if you think they’re being unfair, ask for it to be reassessed – they should allow something for “sundries and emergencies”.
Re the house – they will look at this and will probably ask your ex to pay the extra to make up the full value of your share of the equity e.g. if your share of the equity was valued at £20,000 and you were paid £10,000, they will ask your ex to pay the extra £10,000. If your ex refuses to pay, they could go to court to get the transaction set aside, but this is expensive and time-consuming, so they will try to avoid it.

mad_bad_spender

Thanks for your reply.. Im the only earner/adult in the house so if there is any unexpected expense or emergency i would really be stuck.. I will request that they allow an amount for this and see what they say..

I was really hoping they wouldnt approach my ex regarding the property as first he is unaware of the bankruptcy and he was abusive which is why i took the small amount of money he could raise and left as quickly as possible.. things have only recently settled down and i know this would cause an unbelieveable amount of friction.. but i suppose i will just have to see what happens now. If they did receive the difference in the equity it would pretty much cover the whole debt maybe being a few hundred pounds short.. if this was the case would i still have to pay an IPA?? would i still be classed as bankrupt if the debt is paid in full? sorry im just not sure how this works as it seems i was ill advised at CAB