Shocked with income payment agreement

debt_doctor

lilybankrupt wrote: »

The OR will take 100% of surplus income, that's standard :mad:

.......They will if you let them, yes. I have never conceded to that, there is no reason in law that a bankrupt cannot have spare money in their pocket - just as the IS allowed prior to 2010.
DD

banksy123

Thanks debt doctor.
I've read many times online that they will ask for 100% of your disposable income, is this the case?

My income was based on a lot of overtime that I do at work. It would seem silly to bother doing any now if they are taking 100% of it.

It seems completely unreasonable.

mwarby

Unless your disposable income is less than £20 the OR will take 100%.

mwarby

In some ways its more reasonable than an IVA which sees you pay over 100% for 5 years with no guarantee of success(you could fail, if say you lost your job), in bankruptcy its 3 years with no real possibilty of failure

I am aware that overtime is more complex in an IVA, it depends on your agreement,but normally a certain percentage can be kept

dancingfairy

Well IPAs can be varied if circumstances change so if your income changes your IPA should vary.
Is there any reason for you to do overtime? Will it give you better prospects? If not, then I'd be inclined to not do any. There doesn't seem a lot of point if any additional income then has to be handed over to the official receiver.
df

elljay

dancingfairy wrote: »

Well IPAs can be varied if circumstances change so if your income changes your IPA should vary.
Is there any reason for you to do overtime? Will it give you better prospects? If not, then I'd be inclined to not do any. There doesn't seem a lot of point if any additional income then has to be handed over to the official receiver.
df

...some of which goes towards their costs in administering your case, and some of which goes towards the people you owe money to. Of course there's a point!!

Is there not a moral argument here that we should at least attempt to pay something, if only 1p in the £, towards costs and the salaries of those who work in the OR's office and towards those original debts? Why wouldn't we?

I am a pensioner, working part time, and pay over £500 IPA. I do, however, manage to save and find that the allowances are far more generous than those I allowed myself before becoming bankrupt. For example I am allowed £50 a week food etc but by being careful and frugal, which isn't difficult, I am only spending £25. That's still more than pre-bankruptcy and isn't at all 'unreasonable' as you say. I have a clothing allowance, a holiday allowance, dental etc allowances, a pet food allowance etc etc etc - far more than I ever had before. I've managed to save enough for an emergency, my car needs repairs costing over £1k at the moment, which for the first time in several years I can afford!

I am therefore happy for such a huge chunk to go out each month rather than trying to hold on to money which frankly, I feel shouldn't be mine anyway, having spent it all in the past on an ill-advised business venture.

I'm sure you would find it helpful to post up your soa and then those of us who have been there will be able to give you an idea of what is reasonable to help your case for a review.

EJ