Life After Bankruptcy

irishscot88

Hello all,

I was hoping someone might be able to give me some advice on my situation.

I was declared bankrupt about 4 months ago after my business was forced to close due to financial difficulties. I have been signed off work during this time and since I have been on ESA benefits I have not had to make a contribution towards my bankruptcy yet.

I am due to start a new job soon so I am aware that I will be expected to start making contributions. I was just wondering how they worked out the amount you have to pay each month and if they would take all of your surplus income after living costs have been paid?

The reason I ask is that I was starting to think about my future and I was hoping to return to university. I would either have to save up to pay for tuition fees myself or look into the possibility of getting a student loan.

This is the first time that I have ever been in debt and have never been the type of person who has relied on credit before. It is completely new territory for me so I would appreciate any advice that people could offer me.

Thanks

egrescrimp

Once all your reasonable living expenses have been covered and if you have more than £20 surplus they include that money in your IPA. If you wish to save up for things whilst under an IPA it's my understanding you need to this from your allowed living expenses.

chasingfreedom

Did they set up an arrangement with you at the time of your bankruptcy saying you needed to make repayments? I'm assuming if you aren't working at the moment then you aren't having to repay anything?

At the time you start working they will obviously have to be informed of your change in circumstance and if you have any excess money after living expenses then you may need to start contributing. If you only have say £50 a month above your living expenses I would say its unlikely they'll set up an arrangement but obviously if you have a few hundred pounds to spare then its very likely and they will just leave you with enough for general living costs.

I was working part time when I went bankrupt and didn't have enough surplus after living so didn't pay.

tigerfeet2006

As Egrescrimp says if you have £20+ over then the OR will take it all, including the £20.

When you start your new job your expenses will change as you will have extras to pay out. When you know what your wage is going to be then pop up the new SoA and people will check it for you.