Overtime

ALANNALA

Hi: I am an hourly paid worker and have for some time just done the normal 39 hour week, but now I have the chance to do overtime as the company has a backlog of orders to get through. Can anybody advise on how does the Official Receiver see this ??..does he take all the extra earned, take a percentage or does he leave it alone ?..any advice welcome !!!

tigerfeet2006

He will take all extra income above the agreed SoA. Some are nice and if you inform them of overtime as a one off for a short period then they will let you keep it. But it is down to the individual OR and you won't know until you ask them.

Please be aware that it is your legal duty to tell them if you earn more and they do talk to Her Maj's Tax Bods so will know.

longtermplanner

Do you have an IPA set? If so, you have to tell the OR and it is likely that all of it will be taken. You may be able to argue that your expenses have risen since the IPA was set and get some sort of agreement, but the starting point is that it goes to the OR. (Which of course means there is little point in you working the overtime, damned silly system but there it is.)

If you don't have an IPA set and you have been discahrged, then an IPA will not be set and you can keep all the money.

If you don't have an IPA set yet and you haven't yet been discharged you absolutely should not do this overtime as that may lead to an IPA being imposed which will last three years.

ALANNALA

At this present time I do not have an IPA set, I see the OR tomorrow morning, so really there is no point in me doing the overtime if they take all.

alastairq

ALANNALA wrote: »

At this present time I do not have an IPA set, I see the OR tomorrow morning, so really there is no point in me doing the overtime if they take all.

An IPA is not imposed.

An IPA is an agreement between the Bankrupt, and the OR.

Without sight of your SOA, we cannot comment on whether, with your basic income, and IPA may be sought, or not.

If you already have a surplus [and cannot argue any more household/living expenditure]....then the OR may also take additional surplus incomes.

However, be aware, IPA payments are very flexible....and if you have an expenditure that can only be met by the additional income, this can be taken to the OR in a request to retain the monies.

So, unless you negotiate with the OR, one cannot say for definite whether doing the overtime is 'worth your while', or not.

Of course, much will also depend on your working relationship with your employer?

If you don't do the overtime, will that have a detrimental effect on your employer?

Will that fact influence whether you retain your job, or not?

Or, influence your employer/employee relationship?

How far away are you from AD?

ALANNALA

Doing no overtime would not have any effect regards my employment and it would not go against me if I decided not to do any. Regarding the company any overload of work which couldn't be done in-house, they would sub contract the work out as it has been done in the past. I would only do overtime if it was beneficial to me and to help me build some sort of financial status. If the OR takes the lot, then there is no point. Could you explain please so that I understand your questions better, what are the abbreviations "SOA" and "AD".. sorry for the lack of intelligence !!!

alastairq

SOA- Statement of Affairs....your Income/expenditure list. Hopefully someone will be along to help with the link...?

AD- Automatic Discharge....12 months from date-of-petition.

https://forums.moneysavingexpert.com/discussion/3819725

ALANNALA

Thank you for your kind reply. The statement of affairs and my financial out-goings have been presented to the court and the OF has a copy. I see him/her tomorrow and I will know of the decision that is made..ie, if an IPA is set up etc. The answer to your "AD" is 11 Months 2 weeks

alastairq

Your SOA is a 'living document'....ie not set-in-stone.

It can vary from one week to the next.

The SOA initially forwarded to the OR [the 'Court']...is just for starters.

You will go through it, stage by stage with the OR at the interview.

Did you have assistance from one of the Debt charities in compiling your initial SOA?

You ought to have kept a copy for your own records...

If the OR identifies a surplus of income, nothing happens until you agree with the OR's findings.

[As I said earlier,an IPA is not an imposition].

Have you claimed for all reasonable living expenditure? [for example?]

Once you have agreed with the OR's figures, then..and only then, is the IPA established.


[If there is disagreement which cannot be resolved, the OR goes back to the Court to seek an IPO. The Court then looks at both the ORs evidence, and the BR's evidence, and decides one way or the other...[ie, yes or no, or what figure]...the outcome's binding both on the BR and the OR.