Back pay and the OR

scootw1

The ORs take on this was that thebackpay is money which could have been used to pay creditors.

I don't understand, if the debts are wiped off when you go br, how can the IPA be ised to pay them as they are no longer there?

shameless-about-money

less2303 wrote:

My interpretation of this that this relates to events after the date of BR, i.e. notice given or backpay after the date of BR. Backpay from before the date of BR could still be claimed by the OR.

At the end of the day all the rules and guidelines amount to very little since it is the opinion of the particular OR at the time who has the last say in the matter.

Personally I don't think that it is fair at all but there you go

shameless-about-money

scootw1 wrote:

The ORs take on this was that thebackpay is money which could have been used to pay creditors.

I don't understand, if the debts are wiped off when you go br, how can the IPA be ised to pay them as they are no longer there?

YOUR debts are wiped off but the debts still exist to the creditor.

When you think that the bankruptcy will cost £10K, £12K or more, depending on the work involved. Then the IPA, if any, say at £100 per month is only £3600 and at £200 per month is only £7200 over the three years, most creditors will get next to nothing back.

How much back pay are we speaking of, by the way?

scootw1

Well, it may be over a grand as it is going back to Oct 2004 (that is not definite though)

i agree about the ORs. One rule in one place should apply across the board

scootw1

shameless-about-money wrote:

YOUR debts are wiped off but the debts still exist to the creditor.

When you think that the bankruptcy will cost £10K, £12K or more, depending on the work involved. Then the IPA, if any, say at £100 per month is only £3600 and at £200 per month is only £7200 over the five years, most creditors will get next to nothing back.

How much back pay are we speaking of, by the way?

I thought that the creditors wiped the debt off their own records?

shameless-about-money

The creditors still have a claim on any funds that there might be.

You are going from an IVA to bankruptcy and in that case the creditors included in the IVA have first dabs on any monies that are accrued.

How much is your IPA going to be, I have forgotten! You won't know for certain until the OR sorts it out, but roughly how much will you be paying over the 36 months?

scootw1

shameless-about-money wrote:

The creditors still have a claim on any funds that there might be.

You are going from an IVA to bankruptcy and in that case the creditors included in the IVA have first dabs on any monies that are accrued.

How much is your IPA going to be, I have forgotten! You won't know for certain until the OR sorts it out, but roughly how much will you be paying over the 36 months?

Well, I think my surplus stands at about £400 (assuming the OR accepts all the figures) but next week is when my pay goes up (supposed to be about £100 a month) so surplus will then be £500 so whatever 66% of that is

shameless-about-money

It would be 70% £350 per month, so you would be paying £12600


In an IVA they agreed to accept a lower sum in setlement, however when the IVA has failed and the debtor has not met his/her obligations the creditors are no longer restricted to accept less than their full entitlement. so the debt goes back to its original 100%.

scootw1

My IVA asked for 66% of the debt so I was paying them back 30000.

I say the surplus is £500 but this will come down next month when rent and council tax and water increase

shameless-about-money

Wow, that was a high repayment figure - 66% !