Are bankrupts getting a raw deal?

sman

I recently changed jobs my previous salary was £2100 a month take home the ipa was £460 a month. Now i take home £1400 and my ipa is £205 !! how does that work? I would be better off on benefits. I can barely afford to live!

debt_doctor

sman wrote: »

I recently changed jobs my previous salary was £2100 a month take home the ipa was £460 a month. Now i take home £1400 and my ipa is £205 !! how does that work? I would be better off on benefits. I can barely afford to live!

Hi sman,
If that is the case, why not start your own thread and put up your SOA so we can have a look. If it appears that your IPA brings you below a level for your REASONABLE domestic needs - not basic needs, then you need to think about re negotiating your IPA.

DD

skintandscared_2

I am ready for the abuse I will no doubt receive, BUT maybe the rules are to stop people who DO have an alternative from going bankrupt... I admit my stance is from a creditor's point of view and I'm in the minority on this section of the forum but I'm livid that a man can go bankrupt to avoid paying the £21k he owes my partner, then within a year sell his interest in a property for £1 to his (soon to be ex) wife and re-start his business. He drives an expensive car and is straight back in the property management/construction business but we still don't see the £21k he owes us.....

Most people who go bankrupt are, I'm sure, desperate and there by no fault of their own. I know that. But some are scheming and just want to avoid paying what they owe. :mad:

debt_doctor

skintandscared wrote: »

I am ready for the abuse I will no doubt receive, BUT maybe the rules are to stop people who DO have an alternative from going bankrupt... I admit my stance is from a creditor's point of view and I'm in the minority on this section of the forum but I'm livid that a man can go bankrupt to avoid paying the £21k he owes my partner, then within a year sell his interest in a property for £1 to his (soon to be ex) wife and re-start his business. He drives an expensive car and is straight back in the property management/construction business but we still don't see the £21k he owes us.....

Most people who go bankrupt are, I'm sure, desperate and there by no fault of their own. I know that. But some are scheming and just want to avoid paying what they owe. :mad:

Hi, you wont get any abuse from me I assure you! I have every sympathy for your situation. I believe in fighting for the rights of the individual - and I would fight for yours too.
I pressume the expensive car belongs to someone else / hire car / or belongs to a ltd company.
DD

stuart30

Hmm well my simple view of this is..myself and the wife owed xxx couldn't afford too pay xxx so went bankrupt..ok so for 12 months your restricted in what you can earn ect but that made no odds as im on ESA.

House is neutral or possibly negative (15k of the mortgage was a non secured loan so thats wiped) so keep the house..so now were debt free and pretty much stress free.

Lets not forget wasnt BR lasting 6yrs not that long ago...too be fair whats 12 months in the grand scheme of things,if anything i feel it should be tougher too go BR.

alastairq

too be fair whats 12 months in the grand scheme of things,if anything i feel it should be tougher too go BR.

It isn't the 12 months that is the issue..it's the 3 years once an IPA is agreed that is the fly in the ointment.

And the fact that it seems the IS has simply lowered the threshold for an IPA....perhaps to take advantage of the increased time in which a BR's circumstances could improve?

This is truly a disincentive to the BR?

I agree in regard to making the criteria for being granted a BR petition could be more strict.......however, this ought really be achieved by creating better alternative debt solutions, perhaps including fewer disadvantages for the debtor, rather than greater hurdles to leap to achieve BR?

IPA's seem restrictive too.....and DRO's are looking to be dropped....very counter-productive...

wildheart83

I have just sent details off showing my change in income / expenditure, my income increased by £200 / month, but my outgoings also increased by this amount. Just had a letter asking for £120 per month IPA. My surplus is £86 per month. What I don't understand is where it says:
"you are expected to pay a contribution out of what is left of your income after you have paid for the essential things"
How on Earth can I pay £120 out of £86 left over each month?

tigerfeet2006

Ask the OR/trustee for a breakdown of the SoA he has allowed. This is an agreement and if you don't agree then don't sign anything until you do.

When you get the breakdown, let us know and we will see if we can give you any help.

debt_doctor

debt_doctor wrote: »

Well would you believe it!!!!

A former client of mine who went bankrupt earlier this year has just contacted me to say that he has put in his prior to early discharge SOA (which was identical to the one in his original SOA) and the IS want £xx per month, despite him originally being informed by his previous examiner "there is no way you can afford an IPA!" .....hmmm... £xx pm times 3 years plus BR deposit equals roughly the desired IS costs.

DD

Im seeing him Friday.

DD

After a delay in the client being able to get in to the bureau, a letter has now gone off to the IS indicating the IPA is unaffordable and would be of no benefit to the br's estate.

DD

wildheart83

How much time is generally allocated to agreeing an IPA?