To work or not to work...?

DH70

I filed for my BR at the beginning of July, after a long battle to get things under control after the closure of my business, which ruined me financially. I've struggled to find work since then and have been unemployed on JSA for a while now. I've been lodging with my parents for the past 6 months, but am set to move in with my girlfriend soon (she's been wary of what affect my BR will have on her, but I've done all the necessary research to allay her worries).
I also might have found a suitable job, however it's a part time position to start with, and as such my contribution to the household income will only be be about 25% or so, my understanding is that I will only be liable for the equivalent amount of the household expenditure under an IPA/IPO, and as such I would therefore have a larger percentage of my income deemed "disposable" for the OR to take.
Given that as I am on JSA I do not have an IPA/IPO at the moment, should I take the job and initiate and IPA for 3 years, or sit tight until July 2014 before trying to find work?

tigerfeet2006

I doubt you would get an IPA as you will have a part time wage. Work out what the joint household bills are. Gas, electric, water, council tax, food etc. Isthe house rented or mortgaged? If rented then you want to pay towards rent. Your clothes, phone and travel expenses need to be taken into account. So when you take into acçount your contribution to the household and personal expenses, where will you get an IPA from. Does you girlfriend work? Does she earn more than you do?

Action_Jackson

You only get an IPA in if your disposable income is more than £20 per month after your share of the reasonable living expenses have been paid.

If no IPA is created (and agreed) during the 12 months of the BR because you're not earning enough (or are on JSA), then no IPA can be imposed after discharge, no matter how much you earn.

If you do sign a IPA during the 12 months, you are then hooked into the IPA for 3 years from the date of signing. The IPA will be adjusted up or down (even to zero) if your income changes, but it still continues for 3 years.

You are a good example of how the current rules can completely disincentivize a BR from doing anything to improve their lot during those 12 months. Why would you bother - virtually all your disposable income is given to the OR, and it locks you in for 3 years?

What is your earning potential over the next 3 years, and how much will be given to the OR via an IPA, versus not doing much for 12 months and keeping all of your income after that? Take that figure and weigh it up against any moral obligation you feel you have for paying back some of your debts. It's your choice, and I won't be judging you on it.

Action_Jackson

(Text removed by MSE Forum Team)

Bankrupts have already got a bad name regardless of posts like the OP's. They can't pay their debts - how is that 'good' in any way?

The spirit of this forum is supposed to be for help, not judgement. The OP knows what his choices are, so the correct answer is for him to make his own choice and live with it. He's not suggesting breaking any BR rules or even blurring the lines.

lazer

But if they get a job - even though it leaves them with no extra disposable income for themselves then they do at least pay more of their debts.

Not taking a sutibale job is wrong on 2 counts here:
1 - the OP is on JSA so he therefore should be sanctioned if he doesn't tkae the job
2 - he is intentionally paying less to his creditors than he could be. (I agree that the system does not incentivise working - BR's should at least be allowed to keep a certain % of the extra income they earn - but IMO there is a moral obligation to take the job and earn the extra money* - it will also be better for long term prospects for the OP)

Also OP - if you have been unemployed for 6 months already, I assume you have used up your contributions based JSA, and should therefore be moving to income based JSA, but if your girlfriend is working then you won't get any money (Unless her earning are under £120 a week) - so any money is better than none - at least by working you can contribute to the household.

alastairq

Forget the 'moral' arguments, they are of no relevance whatsoever.

As Tigerfeet says, part-time [even full time?] you may not end up with a surplus of income.....you will be expected to contribute your share of the household expenditure.

For two of you, that would be 50%..or...if that comes to more than you earn, then proportionately less...either way, it's your surplus [if any] which matters, not your GF's.surplus.

Still, the job is still only a 'might'...rather than a definite?

easygoingchap

To work or not to work is the title of your thread so I will answer that from my personal perspective .

Work - you will feel better for it .

I was adviced to think about giving up work before going BR as it would make it easier not having a IPA etc. that may be true, it is also true I am now struggling and will do for next few years but boy do I feel good being able to say at the end of it all I will have paid back a fair whack of my debt and not run away from it all ( which was for a while, honestly, very tempting)

easygoingchap

As a discharged bankrupt why should he not enjoy all those trappings ? That is the purpose of brankrutcy I.e. A new start .

Good luck to him

mynumber

I dont comment on posts of this nature, but before I blow a gasket I will on this one. As a newly discharged bankrupt this I find this post nasty and ignorant. Yes I had debts I couldnt pay, Guilty ! Yes I defaulted on these and filed for bankruptcy, Guilty ! No one knows the reasons behind this and to be honest its no body elses business, just remember ' There for the grace of god '
This isnt really a dig at the op of the post above but to all the really negative and nasty posts, I joined this site at the lowest point of my life, I wanted constructive help and support, not scolding and negative comments. I got what I needed when I desperately needed it, most of the people on here are worth their weight in gold, some able to give help with all the ins and outs of bankruptcy, some with moral support, but what we can do without are the judgmental ops that seem to think that because you filed for bankruptcy you were irresponsible and opted for the EASY way out. My final comment is think before you post, there are vulnerable people on here looking for help.

Ok rant over, back into my cage now.

K X x

alastairq

Erm...that is the reason for BAnkruptcy occurring in hte first place...the individual can no longer 'pay their debts' as they fall due.

People forget what Bankruptcy actually is.

Debts are 'settled' by the forfeiture of assets.

But...what would the alternative have been?

No settlement whatsoever?

BAnkruptcy isn't one of the 'alternatives' to dealing with debt.

It is a 'final solution' to meet the needs of creditors.

To me, seeking to 'repay' what is perceived to be owed, after a bankruptcy order, is much like re-marrying one's ex after getting divorced?

EchoDelta

I think take the job if you can - long term you'll be better off as you will be so much more employable than if you have been out of work for 3 years longer.

Good luck with everything.