Bankruptcy - IPA/IPO - considering quitting my job!

bounce11

Hi everyone. I'm considering BR. My unsecured debt is around £28k (several loans, credit cards). I also have a mortgage which I am currently 3 payments behind. Without writing a long story about this, debts are due to gambling (which I am trying to overcome, but that is a different matter altogether!).

I am currently on a debt management plan. I was paying this for a couple of months, but again my gambling addiction took hold and I have continuously spent my DMP payment money (and mortgage money!) on gambling. It's bad, I know - I don't need a lecture on it at all and I am trying to sort this problem out.

With my DMP I have been told that it will take approx 3 to 3.5 years to clear my debt if I stick to it. I understand that if I declare BR then I can be asked to pay an IPA for up to 3 years to pay towards outstanding debts.

I just feel - what is the point? I am looking at BR as a way of getting all this debt off my shoulders, but from the looks of things I'm going to be paying what I am (meant to be) anyway! Are things going to be any different?

My problem is - I have a fairly good wage and a stressful job. 90% of my income is meant to go towards my DMP and paying my mortgage/bills. I am left with about £150 for food and that is it. I have no spare money whatsoever to do anything, go out socially, I haven't been on holiday in 5 years etc.

I know a lot of you will be thinking "consider yourself lucky" and "there are people worse off than you" - I understand that, but with a decent wage and a stressful job, there is no reward.

I thought BR would free me from my debts with the penalty being a destroyed credit file for a long time (which I could live with) leaving my income to myself to pay my mortgage/bills and the rest being for my own devices. With BR and an IPA it sounds like I am going to be just as restricted as I was without BR!

My job is good and took my a while to get with lots of commitment, but I've even considered resigning - going BR so I don't have to pay an IPA and basically declaring myself homeless! There is a slim chance I will lose my job anyway through BR although I need to check this.

Lastly, if hyperthetically I did lose my job/resign and go BR I take it I wouldn't be put on an IPA (as I would no salary)? IF I did get a job say a few months later, would the OR put me on an IPA then? Would I have to wait until I was discharged?

I can't believe I'm considering giving up my job so I don't have to pay an IPA, but I would be free from financial commitment than be trapped by large monthly payments for 3 years like I am now with my DMP.

Any input? Thanks.

the_suns_is_out

And how would your self confidence be, homeless and without a job?

You don't have to do anything so drastic. Please take some advice, there are plenty of free places that will run through your options with you.

You would find that the allowances with BR would probably much better than your DMP, you are allowed "reasonable" living expenses.

I have just started my IPA, yes, it would have been much more "convenient" if I didn't get an IPA, but then I wouldn't be sitting here in the knowledge that I genuinely am paying off what I can of my debt, and with the security that whatever happens in the next 3 years it will all be over and I will have no debts.

It all feels like it's too big to deal with, but take a step back and look at pragmatically, there will be a solution for you.

Good luck!

bounce11

Thanks for the reply. There is a likelyhood I could lose my job over this anyway (my contract specifically states that I am not allowed to go BR). I just don't feel like I'm 'living' a life at the moment - it literally just consists of working long hours in a stressful environment with no reward. I get to the end of the month, get paid and it's all gone within a couple of days. My DMP is around £1000 a month! My mortgage and bills make up the rest and like I said I have just enough left over for food and petrol for my car! This is basically what it is going to be like for the next 3+ years and I don't like it one bit.

I know it's drastic, but part of me thinks I'd rather risk starting over again, losing my house, job AND all of my debt. I could hopefully get a job soon after and go from there - at least I would have the freedom to do what I wanted and actually live more of a life than basically just running like a machine.

My morale side says that like you say - that way of thinking is drastic. I think the reason I turned to gambling was because of the above situation of having no spare money, and it is one vicious circle. As soon as you tell people you have a problem with gambling they automatically switch off and assume that you are scum and your debt is all down to gambling. It isn't. I built up debt through unwise choices and living beyond my means, buying cars which depreciated rapidly and doing that continuously.

I split up with my ex a few years back and now pay a mortgage by myself. Rates are good at the moment but as soon as they go up I won't be able to afford the mortgage at all (I am 3 months behind through gambling it away anyway!).

It's mad, but I guess now is the time to sort all of this out!

bounce11

Just re you mentioning there are plenty of places - I have tried the CAB and CCCS. Both wanted to put me on to a DMP which is the situation I am in now, none of them wanted to discuss my whole situation and just wanted hard facts and figures. My problem is how to put up with this monotony of having no spare cash for the next 3 years and working for nothing/no reward.

philnicandamy

you "could" be subject to a BRO/BRU as well if you considered bankruptcy due to the gambling

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf

...in this current climate its a little drastic to consider resignation, even though your contract states a no BR clause a few people here depending on the job have managed to continue working..jacking it all in is madness for the sake of avoiding an IPA, CAB etc will have probably suggested a DMP with your circumstances, bankruptcy should be a LAST resort when all other avenues are closed...bankruptcy has many many implications for a few years to come you need to get more advice from cccs/cab or national debtline & see what they say

and as others say the living expenses are very very different to a DMP they allow more flexibility

what you need to do is fill in this....

http://makesenseofcards.com/soacalc.html

when finished slect "format for MSE" then copy & paste the results here

Sunnylooloo

I don't think the OR will look favourably on you if you have resigned from a good job!?

the_suns_is_out

Hmm, as said above, you need to do some more research, I don't know much about them as it wasn't relevant for me, but gambling does seem to mean you can be subject to a BRO/BRU which means the restrictions of bankruptcy are held for longer.

Also, you asked whether if you go BR and then get another job would you be subject to and IPA, and the answer is yes, if you have surplus income after all your reasonable living costs then you would pay and IPA, so that would be unlikely to be an option.

If you don't enjoy your job, try to find another, if you do enjoy it then stay with it and speak to HR. In theory I "may" have lost my job due to BR, but I didn't my company were fine about it.

I'm afraid there are probably a lot of us in the same boat as far as feeling like all your hard work is "unrewarded" with not having had holidays etc, but we are all here for the same reason originally, we are/have been insolvent. And that really makes you re-consder what is important. Right now would you rather have a holiday and be further in debt, or not have a holiday and pay back snother chunk off what you owe?

It is hard to decide the best route.

We_Are_The_Mods

Whilst not in a similar position, I sympathise. I am doing what you suggest and waiting until being discharged before returning to work to avoid an IPA, sounds bad I know but I don't see the point in going BR if you're going to end up with repayments for 3 years anyway, I might as well not have bothered.

Being out of work, with no income or assets I was expecting early discharge but I didn't get it. Come the end of August I should be able to start rebuilding my life.

JCS1

Sunnylooloo wrote: »

I don't think the OR will look favourably on you if you have resigned from a good job!?

Not an issue with the OR - they have no control with where or even if you work.

bounce11

Thanks to all the people that replied, including a couple of you that PM'd me

After hearing all the replies, I realise it is a little premature/stupid to think about packing my job in. I actually enjoy the job itself, but it is stressful and hard work.

I think the bottom line is - I can stop all the gambling if I could see there was light at the end of the tunnel. I just think I've taken it too far now. This is the third time I have told my creditors that missing their last month's payment was due to my gambling and that I 'promise' to pay on time next time without gambling. I don't even think most of them will be as forgiving this time.

If I am discharged as a bankrupt, can the OR still enforce an IPA? (i.e. I am theoretically unemployed, I get discharged, THEN get a job...can the OR then tell me I need to pay an IPA or can he not because I am discharged?)

kepar

Once you are discharged you cannot have an IPA/IPO imposed on you. The question is can you manage a year without a job?