questions regarding bankruptcy

catandy

Hi wonder if you good people can help with some questions I still have about potentially going bankrupt. ive read thru everything I can online and im going to speak with stepchange as a second opinion / sounding board but cant do it till next week and would appreciate some input

1. how far will the OR go back in my financial affairs? ive been on a DMP for getting on for 2.5 years but nothing in my situation shows signs of changing/ improving and im not really making headway.
2. IPO - ive gone thru the calculator thing on NEDCAB website - are their figures anything like accurate? the rates on that give me more to live on than my current DMP does?
3. pension contributions thru work - I take it these will be taken?
4. ive got a overpayment of WTC that needs to be repaid - 7K worth of debt alone. can this be included in my petition or not?
5. calculations for IPO - do they take account of commissions or just basic income as its not guaranteed?

sorry that's just to get started with my head is whirling with all of this. thank you in advance

alastairq

Hi...to get you started,
[1] As far back as is necessary..usually 5 or 6 years..mainly to see if any assets have been hidden, etc.

[2] IPA/IPO....the SOA for BAnkruptcy is probably more reasonable to live on than a DMP..

[3] AFAIK, at the moment, pension contributions are not 'taken'....providing they are reasonable.

940 I believe the overpayment will be included in a BR, but there may be problems convincing HMRC staff that is the case? I'm not overly sure on this,and I'm short of time at present.

[5] Where income fluctuates, then an average is agreed over the year.

TheGardener

1. My OR asked for 12 months - but they can go back as far as they want.
2. Do you mean IPA? Yes - the figures are accurate but not written in stone - they are not 'allowance' - more like guidelines. Its up to you and the OR to determine what is 'reasonable' for you. You should be honest about what you spend - but don't short change yourself if you can evidence an expense higher than the guidelines then do so.
3. No - if you contribute to a government recognised pension (most are) and if your contributions are 'reasonable' then you can carry on paying them. 6% would be the norm for average earning public sector and appears to be the rule of thumb - any higher than 15% and you are likely to raise the OR's eyebrows...
4. It depends on whether there is any suggestion of fraud...?
5. The OR will likely take an average based on previous income but will ask you to let them know if you receive significantly more than the average at any point.

catandy

many thanks to both of you - just needed someone to confirm what I already thought was how it was. just got to speak with stepchange then sit down and make the decision now. thanks again