Increase in income during IPO - What to do?

Muckers_Mate

I'm twelve months into my 3 year IPO.

A month or so before my bankruptcy discharge, I managed to secure a job after a not insignificant time unemployed.

I informed the OR and to cut to the short story, I began a 36 month IPO repayment.

When I submitted my income and expenditure, I was naive to say the least and did not expect the OR to grab ALL my excess income, which wasn't a great deal anyway. They did, big style.

I've now had a performance pay increase and I realise I have to inform the OR, but now I'm not so naive as before.

I'm the wrong side of 45 and don't have any pension to speak of - my ex-wife saw to that. With this new income, I can start to provide for my future and put a modest sum into a company pension. This would show on my payslip and be deducted from my gross, therefore reducing my new net income.

Is this a feasible, acceptable approach - as far as the OR are concerned. I'll only be putting aside 10-12 % of my gross income, so we're not talking mega-bucks but is it considered disposable income given that I never actually "see" it.

I realise I must disclose the increase, but I need to be properly informed so as not to be as naive as I was at the beginning.

Has anyone any sage advice?

Thanks

MM

fermi

If this is optional then this from the OR's guidance would most likely apply.

31.7.109 Contributions to a pension or SAYE scheme

The official receiver should examine closely any deductions at source from earnings and consider whether payments or over payments into a pension scheme should be disallowed, as this is not an essential outgoing required to meet the reasonable needs of the bankrupt. In most cases an individual can elect to stop or reduce their contributions to a personal pension for a period of time. Whilst the bankrupt may argue this will have the effect of reducing future income, the official receiver should explain that the cost of maintaining his/her future income should not be made at the expense of his/her creditors. In the same way where the employer operates a SAYE saving scheme (where a proportion of the bankrupt’s income is deducted at source to purchase shares in the employing company), this expenditure should be investigated and disallowed, to ensure that the full amount of income available is included in an income payments calculation.

Muckers_Mate

Thanks, I thought this would be the case. Hope it makes a difference that I'm not putting ALL the increase into my pension and it's still only ~10% of my salary...

WhyPPIWhy

I'm interested to know how this ended up....

debt_doctor

Hi,


I think you might be able to have more success in showing that some of your expenses have increased or that you underestimated some of your costs which is having the effect of not having enough money for your 'reasonable domestic needs'.
Did you claim a small holiday fund (£20pm)? or haircuts (£10pm)? - and it is perfectly reasonable and lawful for a bankrupt to have some spare money in their pocket.
DD