paying off your creditors

macbabypam

how does it work?

My OH May have the opportunity to earn some serious cash over the next few months. He is a sole trader but hasn't earned anything since BR. AD is September 2014 and no IPA.

How does the OR take the money if he didn't know exactly how much he would earn month every month, as it could vary quite considerably I don't see how an IPA or IVA could be agreed.

Also if he earned enough to pay back what we owed in BR can we pay it in installments every month or do you have to pay it back in one lump sum. Would this mean we could annul the BR ?

Sorry to ask loads of questions, I'm hoping this will all work out but knowing the bad luck we have had these last couple of years it probably won't !

I'm going to ring the OR for advice if we receive any money.

Thanks

OutofDebt-NOT-OutofDanger

macbabypam wrote: »

how does it work?

My OH May have the opportunity to earn some serious cash over the next few months. He is a sole trader but hasn't earned anything since BR. AD is September 2014 and no IPA.

How does the OR take the money if he didn't know exactly how much he would earn month every month, as it could vary quite considerably I don't see how an IPA or IVA could be agreed. The OR would normally take an average of earnings over an agreed period (depending on how variable your income is) to assess the possibility of an IPA, but it is your legal responsibility to advise the OR if this differs (whether income is higher or lower) to make sure you are paying the right amount.

Also if he earned enough to pay back what we owed in BR can we pay it in installments every month or do you have to pay it back in one lump sum. Would this mean we could annul the BR ? To annul a BR is extremely expensive - not only would you have to pay back all the debts in full, but also ALL the OR costs which can be considerable.

I don't know what the "charge-out" rates for the Insolvency Service is, but if they're anything like private Insolvency Practitioners, even juniors get charged out at over £100 per hour - I have seen senior partners charged out at well over £500 per hour :eek: (and I'm sure that some charge more than this!)

Sorry to ask loads of questions, I'm hoping this will all work out but knowing the bad luck we have had these last couple of years it probably won't !

I'm going to ring the OR for advice if we receive any money.

Thanks

Hope you can work something out.