bankruptcy help very worried...

dojoman

I collated all the details of my debts by getting my credit files from Experian, Equifax and Call Credit.

arghhh

will that just tell me the same as what the report does from the IVA company tho as they have been passed to collections agencies? or will that have the original creditor on it?


Have just contacted hubbys HR, he wouldnt have to tell his 'work' but payroll would be informed as his tax would change?? anyone know why or how his tax would change?

dojoman

arghhh wrote: »

will that just tell me the same as what the report does from the IVA company tho as they have been passed to collections agencies? or will that have the original creditor on it? Don`t know!


Have just contacted hubbys HR, he wouldnt have to tell his 'work' but payroll would be informed as his tax would change?? anyone know why or how his tax would change?

He will get NT code for the financial year he is actually BR, all it means is he will have no tax deducted from his wages. The extra that you receive because of this has to be paid to Moonbeever. This is normal for all BR`s who pay tax.

arghhh

ah ok so he will still pay the tax but to a different company, is that something we have to sort or will his work or the HMRC automatically sort that?

dojoman

Have a read of this thread, link below, the answers to a lot of your questions are already there:)

https://forums.moneysavingexpert.com/discussion/1056083

arghhh

i did read that thread before i posted, i'm not good with all the technical jargon and just wanted things clarifying, which they have been now

JCS1

Important to note that the tax coding that goes to payroll would not state the reason why (so would not mention the BR). And HMRC won't tell them if they ask either.

alastairq

arghhh wrote: »

ah ok so he will still pay the tax but to a different company, is that something we have to sort or will his work or the HMRC automatically sort that?

hi...............background info first.....when a person goes BR....the income tax owed for that [tax] year is included in the BR [we all get a tax 'bill' at the beginning of a tax year....for PAYE this is divided up and we pay a proportion of that bill as we go along]....

To remove discrimination between self-cert tax payers, and PAYE....the PAYE is placed on a Nil Tax Code [NT]....[there are other reasons for someone getting an NT code, aside from BR]

For the BR, this effectively means receiving almost one's gross pay..[obviously, less NI, and other deductions]...

This would now place the BR in a position of having 'surplus income'.

This 'surplus' is then collected [by the mythical and wondrous Moonbeever you've seen reference to]...and goes into your BR pot for creditors...or rather, goes towards the administrative costs of the OR and IS.

The NT code 'should' end with the new tax year....or if the BR changes employment, whichever is first.

This is when payment of the NT-based IPA ceases.

Moonbeever will notify the BR of roughly how much the NT-IPA will be..and how to pay it.

However, Moonbeever will also need sight of those first NT payslips, so adjustments can be made......however, it is extremely rare the BR is disadvantaged by the NT-IPA....sometimes the opposite!

If overtime worked, or bonuses received, then the appropriate wage slip is forwarded to Moonbeever, and a balance owed is calculated.

This can often be a month or so behind actual receipt of wages....plus, Moonbeever can adjust pay dates to an extent to suit BR.

Note... the NT-based IPA has nothing to do with a surplus-based IPA.

Ineedaname

My credit files just listed who I owed the money to, either the original creditor or the DCA. But don't worry if you can't connect a DCA to an original debt, just list what you have. The OR can investigate and ask who the DCA bought the debt from if they need that information.

There was a post in another thread which had the updated allowances listed. I've got it printed off but am unable to find the post any more to link to, has it been deleted?

arghhh

Thanks for all the info on the work tax, was a great help


Couple more questions tho.....

Obviously while your BR you can't be a director of a company, run for parliament, be a councillor e.t.c does this all end after the BR is discharged so basically once discharged you are free to do anything you want again? Or are there still restrictions and how long are the restrictions for, with exception to the IPA if we have to pay one.

Am I right to assume that when you are bankrupt the debts are 'wiped' completely? Does this happen when you file for BR or when discharged or after the 36 months of IPA payments if you have to pay them.

As we are with an IVA company is there any way that if we go it alone the creditors involved with the IVA can get round the bankruptcy and come back at a later date and demand money?

Will the IvA company themselves charge us for failing the IVA? Or can they charge us once the bankruptcy has been granted therefor creating a debt after BR? Obviously they aren't going to be happy we failed the IVA and they aren't now going to get the thousands they thought they were getting!