Un-discharged Bankrupt Payrise?

veg_racer

Hi all, some advice needed please!
I went bankrupt in September of last year and am currently un-discharged. I am currently on a Nil tax code and pay only the tax I would have paid to the O/R. I am not currently subject to an IPA as it was deemed that my family and I couldn't afford to.
So currently as it stands I will be discharged in September of this year, however i have been offered a new job which will involve a payrise of approx an additional £500 per month. My main worry is that once I inform the O/R of my new income they will enter me into an IPA which will then last 3 years from the date it starts, effectively extending my bankruptcy by 3 years. Obviously I don't want to take this new position which will involve more work and more hours and have it essentially put me in a worse position than I was in before!
Is there any way to get around this?

Thanks in advance

Anthony

battyboimatt

unless you can put the job off until after september when your discharged than no, you signed a legally binding document to update them of any increase / decrease of income. If you took the job before then they would probably find out because when you take a new job it will override the nil tax code.

tiggerbodhi

Hi, didn't want to read and run, cannot think of any way around the issue, unless somehow you can delay the payrise until after September, maybe negotiate a "bonus" payable in December for all your good work from now until September then have a payrise from then? not technically illegal but a bit adroit, but no less than any MP or Merchant Banker (cockney rhyming slang) would probably do.

veg_racer

OK, Thank-you both for your responses, it's not really the kind of job I can put on hold, I may be able to delay the pay-rise however so I'll look into that. My family and I are quickly out growing our current rented property and ideally wanted to move before our youngest starts walking. Could i tie in the payrise with a rent increase? would that work or would the O/R think something fishy was going on. currently we pay 565 p.c.m for a 2+ box room house, we have been looking at 4 beds at around 800-900 p.c.m

iquit

As a career driven br I'd be inclined to take the job, only because turning down this and any other promotion seems like a life lived on hold. Just my opinion. hope you understand what I'm trying to say. PS I took a promotion before my IPA was agreed, never regretted it.

Lou67

veg_racer wrote: »

Hi all, some advice needed please!
I went bankrupt in September of last year and am currently un-discharged. I am currently on a Nil tax code and pay only the tax I would have paid to the O/R. I am not currently subject to an IPA as it was deemed that my family and I couldn't afford to.
So currently as it stands I will be discharged in September of this year, however i have been offered a new job which will involve a payrise of approx an additional £500 per month. My main worry is that once I inform the O/R of my new income they will enter me into an IPA which will then last 3 years from the date it starts, effectively extending my bankruptcy by 3 years. Obviously I don't want to take this new position which will involve more work and more hours and have it essentially put me in a worse position than I was in before!
Is there any way to get around this?

Thanks in advance

Anthony

What a conundrum! Well I must admit, when me and my OH went BR in Nov 2010, we were on poor pay and had been struggling badly financially for several years due to ill health and job loss/having to take a much lower paid job. So we weren't issued with an IPA either.

In May 2011, my OH was offered the chance of more hours at work, as someone was leaving and the hours were up for grabs, which would have made his salary about 20% higher. This would've had to have been declared of course, and we would more than likely have been issued with an IPA for several hundred a month for THREE YEARS.

I don't agree with IPAs, as I believe once you have bankrupted your debt(s), that should be it, and you should be free to start afresh, but if had just been for the remainder of the 12 months, we could maybe have tolerated it. But we had no intention of paying a penny back to the creditors after going bankrupt; let alone paying a few hundred pounds a month for three years!

So my OH explained this to his boss as she knew about the BR, and she said that the other employee wasn't leaving for about 2 months anyway, and they will get a temp in for the extra hours, and ask him again, after we have been discharged. She did so, in January 2012, and he took the extra hours, and we are now much better off with no debt, and no IPA.

All that said, I can't see many ways around this, except to defer the promotion /new job until September - which is probably not an option, or ask if you can have the payrise delayed until then. Then you can get into the position you want, but not suffer with an IPA for 3 years.

Have you actually spoken to anyone about it? Personally, I would be reluctant to give £500 a month up for almost 3 years! (Because the OR will take all of the surplus!) Do you really want to sacrifice a potential £16-£17,000 of your hard-earned cash to the creditors?! I definately wouldn't. Do ask the employer if you could be on the same salary you're on now, until you're discharged. I am sure they won't mind saving the money!

At the end of the day, a decision like this is purely down to the individual, but from your post, it sounds like you are very reluctant to be issued with an IPA, so you either need to turn down the job, and hope something else comes up in the future, or as I said, ask if you can have the higher salary deferred. Otherwise, I'm afraid you will have any extra money you earn, taken from you for three years!

Mouse1812

how about a salary sacrifice for some pension contributions or other non cash benefits ?