Bankruptcy in Scotland

wildheart83

Hopefully someone can help me as I'm starting to panic about what will happen.

I was declared bankrupt last year, and i'm now a few weeks off being discharged.
At the time of my BR being awarded, I was unemployed but started working again shortly afterwards. I emailed AiB to inform them but didn't hear anything back.
I then completed my 6 month check up, giving details of employment and salary etc, and wasn't asked then to enter into an IPA.
Now i'm a few weeks off being discharged and have changed jobs again, this time with a bit of a payrise, although I'm unlikely to be here long term.

Should I inform AiB again that my income has changed again so close to being discharged? I am not looking to escape paying back what I owe, but I am only just getting myself back on track and am looking to change jobs again in the near future, to something that I love doing but is not as well paid as where I am at the moment.

Sorry for rambling, hope it makes sense.

blonde_babe_2

You are meant to advise your trustee of any financial change in circumstance....so dependent on how much of a payrise you had, then the trustee might look to enter you into a 3 yr payment plan (minus time gone by since BR). Is it worth moving to that higher paid job since the trustee might claim that excess for a period of 2 yrs.

From what you have said, i think you have taken this higher paid job. so you will need to do a SOA for the trustee to work out your excess income.
Of course, your expenditure might also have gone up by an equal amount relative to your payrise thus leaving you with no spare income meaning that the trustee wont look to claim any of it.
I cant say without knowing more of your circumstances and of course it is only my opinion and it might not fit your situation.

My husband is 4 months into his BR and we can't wait for the remaining 8 months to go by.

best of luck

wildheart83

Yes I took the higher paid job about a month ago, mainly because my parents income has reduced dramatically over the last 3 months and they have asked if I could pay more. I could only do this if I got a better paying job.
So expenditure has gone up relative to my payrise, last time I emailed AiB and heard nothing back at all but obviously I don't want to risk a BRU for the sake of an email / letter.

broxiebear1

wildheart83 wrote: »

Yes I took the higher paid job about a month ago, mainly because my parents income has reduced dramatically over the last 3 months and they have asked if I could pay more. I could only do this if I got a better paying job.
So expenditure has gone up relative to my payrise, last time I emailed AiB and heard nothing back at all but obviously I don't want to risk a BRU for the sake of an email / letter.

is it aib that is your trustee or someonelse personally i would let them know everything its bad luck if you now get an ipa so near to discharge but you are better being honest with them they might not do anything , i have an ipa for three years but its a price worth paying .
hope everything works out for you
broxie

wildheart83

Yes aib is my trustee, although each time i have correspondance from them it's someone different.
I'll send them an email tomorrow along with an updated SOA and see what they say.
Thanks again for your advice

wildheart83

Just a quick update on this.
I have emailed who i thought was my case officer to let them know my income has increased and they've said that now I'm earning more than national minimum wage I'll have to be assessed for a contribution.

I included my SOA, which shows a suplus of of £86 per month, but they say "if we need any more information regarding your incomings and outgoings we will supply you with a current state of affairs or a telephone interview. Obviously I want to repay some of what I owe to my creditors, but am I correct in thinking that the 3 years will start from the date of my IPA rather than the date of my BR?

And does the £20 per month surplus apply to Scotland, or just England and Wales?

The case officer said they'll pass it onto the correct dept, who'll be in touch in the next week or 2, I have 6 weeks left to serve til discharge, can they extend my discharge til the IPA is agreed?

Sorry so many questions, but it's thrown up lots of things I don't know about.

hattybee

Law says that IPA ends no later than 3 years after the date on which the agreement was made. So if they manage to get it set up before your discharge, it could run for 3 years.
£20 surplus is just for England. AiB will ask for what they can reasonably get. So if they ask for another income and expenditure, be realistic – make sure you show your increased expenses, as well as income. And tell them if it’s unlikely to be long term job.
If they do want to defer your discharge, they have to apply to the Sheriff at least 3 months before your expected date of discharge – so looks like they’re out of time.

wildheart83

I did my SOA on makesenseofcards, and included it in the email I sent them. Should I post it on here?
I have been very realistic and also very honest for my reasons behind changing jobs so close to my discharge. I am not setting out to defraud anyone, or to get out of paying but I'm very frightened that they will try and force me to pay more than I can afford.

It feels like all the stress and worry I went through pre BR is back and is worse than ever.

broxiebear1

wildheart83 wrote: »

I did my SOA on makesenseofcards, and included it in the email I sent them. Should I post it on here?
I have been very realistic and also very honest for my reasons behind changing jobs so close to my discharge. I am not setting out to defraud anyone, or to get out of paying but I'm very frightened that they will try and force me to pay more than I can afford.

It feels like all the stress and worry I went through pre BR is back and is worse than ever.

post your soa on here and we will try and help you , i think it depends who your trustee is mine is brilliant not aib i was allowed sky £40 mobile phones 2 £40 groceries for 2 £100 a week and allowed to keep some extra money he asked what i could afford and when i gave him a figure he accepted it , but i know someone who got a trustee who was a lot different . my advice is be honest with interview and soa and everything should be ok
good luck
broxie

wildheart83

Monthly Income Details[/b]
Monthly income after tax................ 1135
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1135

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 360
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 46
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 195
Clothing................................ 20
Petrol/diesel........................... 250
Road tax................................ 12
Car Insurance........................... 61
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 25
Emergency fund.......................... 20
Total monthly expenses.................. 1049

Monthly Budget Summary[/b]
Total monthly income.................... 1,135
Expenses (including HP & secured debts). 1,049
Available for debt repayments........... 86
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 86

My car is worth £700 max, and I've just spent over £300 in repairs, plus it's due its mot in July so thats why my car maintenance bit is quite high.

hattybee

Accountant in Bankruptcy uses CCCS budget guidelines for sequestrations.
They’re available here (towards the end, ignore the CFS figures)
http://www.aib.gov.uk/publications/surplus-income-calculation-income-payment-agreements-ipa#node-3183
That should give you an idea of what you can claim and what they consider reasonable.