Discharged next week - but what's really changed?

tigerfeet2006

They can. I have seen it recently. Someone had saved nearly £3k and the OR claimed the money for the BR estate.

blondee55

tigerfeet2006 wrote: »

They can. I have seen it recently. Someone had saved nearly £3k and the OR claimed the money for the BR estate.

How the hell does someone who is bancrupt save £3000.

dojoman

tigerfeet2006 wrote: »

They can. I have seen it recently. Someone had saved nearly £3k and the OR claimed the money for the BR estate.

I stand corrected and humbly apologise:o but I wasn`t thinking of anywhere near that amount, as I know that for that amount it can be taken as an after aquired asset. I too don`t see how someone could save up that amount whilst being BR.

tigerfeet2006

She cut everything to the bone after she was made BR. Saved holiday, medical, bought a smaller car and saved the petrol money, saved on housekeeping, didn't buy any clothes, changed utility providers, ebayed stuff. You name it, she did it. Also her IPA is under the old rules so she had a bit of leeway. Did it in about 18 months.

BUT silly moo was boasting about it at school and one of her creditors was a local builder and the wife has kids at the school and heard her so rang the OR's office and told them.

kepar

So my wife who is under the old system of IPA, where she pays 70% of the spare, should then declare her savings why?
She has about £150 a month spare, does she have to spend that then and not save it in case the OR wants it?

She was advised when she agreed her IPA to try and save.

Even if she did pay more into her SOA, she would still have spare because of th70%system.

Ineedaname

I was thinking of larger amounts when making my comments, not just a couple hundred, although I think my OR would take that amount too! They're getting desperate to recoup their fees so any amount will do for some ORs now.

Dojo - the difference it makes if the OR's SOA asks if you have savings is that you must be honest on the form if asked the question and if a BR puts down say £1k savings then an OR might decide they want that money. If the question isn't asked and the BR doesn't brag about savings, then the OR is less likely to find out.

As proven by Tigerfeet's example, if a BR can live on less then in the OR's eyes they could say the allowances given are too high and take the money/reduce the allowances.

I did say earlier I wasn't disagreeing with the gurus, just wanted to explain my reasoning, wasn't trying to get anyone to change their minds.

kepar

I was thinking of larger amounts when making my comments, not just a couple hundred, although I think my OR would take that amount too! They're getting desperate to recoup their fees so any amount will do for some ORs now.
How much larger than £150 a month, she has saved nearly £2000.
This is under the old system
Now on your theory lower the allowances in the SOA.

If your income is £3000 a month , you have an SOA of £2000 = £1000 spare. The OR takes £700 leaving £300 to you .

If your income is £3000 a month , you have an SOA of £1600 = £1400 spare. The OR takes £980 leaving £420 to you .

Why can't you save the spare, your theory and reasons INAN don't add up.

alastairq

of course...people seem to be thinking along conventional,acceptable savings practices....??

If I were still subject to BR controls, I would not be thinking about savings accounts, as such.

But my 'allowances' would be spent...even if they only got as far as a tin in the cupboard?

did I really say that? Oh golly gosh, how remiss of me....?

debtinfo

As shown by the above the OR can take any savings that build up, They do take a common sense approach and they rarely enact that power. So for example if you have allowed a certain amount for a holiday, it is quite acceptable for you to save that up to spend on your holiday, same for car repairs/mot/serviceing etc. Ie you have been allowed them for a specific purpose so it is ok to save them. If you have saved from other allowances which you are meant to spend each month then the R will look at it and think those allowances are to generous and so will look into recovering them. Of course boasting about it in front of creditors is not going to help your cause

From the manual


31.8.40 Build up of funds in the bankrupt’s bank account (amended May 2009)
Where there has been a gradual build up of funds in the bankrupt’s bank account it is likely that the source of those funds will have been a from a surplus of income and the official receiver, as trustee, should consider laying claim to those monies in the account that are in excess of those necessary to satisfy the basic domestic needs of the bankrupt and his/her family. Where the trustee wishes to lay claim to monies of this nature, the claim should be under an IPA or IPO (see Chapter 31.7), rather than as after-acquired property, and an IPA/IPO in to claim the monthly surplus should also be considered.
Where the source of the funds is from some other (non-income) source (for example, small gambling wins), then the monies can be claimed as after-acquired property.

debtinfo

alastairq wrote: »

of course...people seem to be thinking along conventional,acceptable savings practices....??

If I were still subject to BR controls, I would not be thinking about savings accounts, as such.

But my 'allowances' would be spent...even if they only got as far as a tin in the cupboard?

did I really say that? Oh golly gosh, how remiss of me....?

I have this mental picture of entering your house now and all the rooms floor to ceiling being covered with shelving and tins like a supermarket:D