Back pay and the OR

scootw1

When I've gone bankrupt I know I need to inform the OR about pay increases, bonuses etc. What happens if it is back pay? I will be getting about two years backpay when I get a payrise later this year (on Agenda for Change in NHS, goes back to Oct 2004). will the OR take any of this off me as it isn't really a bonus, it's pay that should have been due me.

luckylady45

I Hope not as that would be unfair as that was money that you should have had monthly since Oct 04.
You would need to ask the OR I guess and explain it as such.
Did you have any probs going BK being within the NHS, are you a nurse ?
Thanks
LL

scootw1

haven't done it yet. next thursday.don't think it will affect me

shameless-about-money

I would check this out with an IP if I were you.

Any lump sum payment whilst undischarged has to be declared to the OR. Since this payment is going to be given to you in bankruptcy the OR will have a valid claim on it.

scootw1

So if it came after being discharged (even though still in an IPA) he wouldn't have a claim?

shameless-about-money

If it came after discharge but you were in an IPA the OR can claim right up until the 36 months is up.

They will treat the money as "windfall".

It could be that the OR will simply increase your IPA slightly, but I doubt it. It is better for you to be forewarned than to not know at all.

scootw1

shameless-about-money wrote:

If it came after discharge but you were in an IPA the OR can claim right up until the 36 months is up.

They will treat the money as "windfall".

It could be that the OR will simply increase your IPA slightly, but I doubt it. It is better for you to be forewarned than to not know at all.

I think I see you point about being a windfall, however this is money which I should have been earning for the two years previous if the A4C process had been done when it was supposed to be. Perhaps the OR would not see that as a windfall?

shameless-about-money

scootw1 wrote:

I think I see you point about being a windfall, however this is money which I should have been earning for the two years previous if the A4C process had been done when it was supposed to be. Perhaps the OR would not see that as a windfall?

I can see your point of view but the OR will simply see a lump sum of money coming at you. They will treat it as windfall - tax rebates, etc are all treated this way.

I am sorry.

scootw1

shameless-about-money wrote:

I can see your point of view but the OR will simply see a lump sum of money coming at you. They will treat it as windfall - tax rebates, etc are all treated this way.

I am sorry.

oh well, they will only take a percentage i presume so at least some will be mine

shameless-about-money

In bankruptcy windfall is taken as 100%, isnt' it?

I thought it was IVA that a percentage would be taken?

Have you had a read of the https://www.insolvency.gov.uk website to see what it says there?

scootw1

can't find anything on there. Can anyone else help out?