Can I avoid an IPA

scedminc

Hi,

I wonder if any can give some advice on a possibly tricky situation.

I was made BR in jan this year and I have 7 months in I have been asked to supply income and expenditure details for which I assume the OR wants to set up a IPA.

My basic history is I was made BR due to a personal guarantee I signed when I was a director of a company which I subsequently left but wasn't entirely aware of the personal guarantee. Anyway I tried to fight this an lost. Prior to BR I was a director of my own company and then setup another in my wifes name. I am pretty sure if it continued then I would be seen as a shadow director on the basis that my wife hasn't got much of a clue about the business.

I now think I have a couple of options as I want to avoid the IPA being I will be discharged in pretty much 5 months.

a. Live off my wifes money which was gained via the company she is a director of and leave it dormant for the next 5 months and tell the OR I am unemployed and earning nothing and she pays all the bills.

b. She continue running a part of that company which she wouldn't need any knowledge to run and I either be an employee and take a very min wage probably not enough to cover my part of the bills and she pays the rest.

c. become self employed for 5 months but this would mean an IPA.

Not sure what I should do but really want to avoid the IPA being the debt wasn't run up by me in the first place and I just got caught in a really bad situation and lesson learn't.

Any help and advice would be great.

Many thanks.

debt_doctor

Hi,


You have outlined your choices and it is up to you which one you go with.
Of course you must make sure that you are not seen as acting as a 'shadow Director' or being involved in the management of the Company your wife is running.
DD

owlet

We would all love to be able to dodge out of an IPA but most of us are honest and bite the bullet. Whilst SOA figures can be used to get the maximum amount of money so you aren't desperately short of cash, completely massaging the situation and putting a load of bulls**t is something else entirely.

The idea of an IPA is that you can pay something back - a lot goes on fees, granted. However, in return you have had all your debts wiped.

Think carefully.

scedminc

Cheers for all your comments which most weren't particularly useful to say the least.

Basically, I'm pretty sure most BR's are exactly that because they themselves run out stupid amounts of debt and then maybe fell on hard times. I appreciate that there are many reasons for people being made or applying for BR so this is not an attack on them but the debt that made me BR was my only debt and was in fact not run up by me. It was run up by others after I left a company as director. I wasn't even aware that I had signed a PG and after 2 years of fighting I lost the case to defend that it was a PG against myself. Anyway that is a very long story.

The only reason I don't want a IPA is not to avoid paying back a debt that I wilfully run up but simply because I don't believe I should pay back a debt that was run up without my knowledge and for a PG that a. never knew existed and b. even if I did had no way of ending.

I come here hoping for some constructive help not idiotic comments.

Anyway I await the stupid comments to come about how stupid of me not to know about a PG in the first place so bring it on!!!!

scedminc

debt_doctor wrote: »

Hi,


You have outlined your choices and it is up to you which one you go with.
Of course you must make sure that you are not seen as acting as a 'shadow Director' or being involved in the management of the Company your wife is running.
DD

Many thanks and I agree I can't be seen as doing that.

Being made BR effectively made me jobless anyway and that's how it's remained. There is one part of the business that is online and anyone could do it so I couldn't seen as defacto or shadow because it requires no knowledge and they would have difficulty proving that it did.

So I think in the meantime I will reply to the OR that the BR made me jobless as they know it would legally have to and to date I have no income and purely survive on what she earns.

I don't think that is dishonest in anyway shape or form being that since the BR I would have been seen as a full blown defacto/shadow director if the business remained running to its full extent.

I will just see what they say but can't see how they can argue. It's not as though I was employed and simply left my job because I had no choice due to the legalities.

fermi

scedminc wrote: »

I come here hoping for some constructive help not idiotic comments.

Please use the button on such posts.

owlet

scedminc wrote: »

Cheers for all your comments which most weren't particularly useful to say the least.

Basically, I'm pretty sure most BR's are exactly that because they themselves run out stupid amounts of debt and then maybe fell on hard times. I appreciate that there are many reasons for people being made or applying for BR so this is not an attack on them but the debt that made me BR was my only debt and was in fact not run up by me. It was run up by others after I left a company as director. I wasn't even aware that I had signed a PG and after 2 years of fighting I lost the case to defend that it was a PG against myself. Anyway that is a very long story.

The only reason I don't want a IPA is not to avoid paying back a debt that I wilfully run up but simply because I don't believe I should pay back a debt that was run up without my knowledge and for a PG that a. never knew existed and b. even if I did had no way of ending.

I come here hoping for some constructive help not idiotic comments.

Anyway I await the stupid comments to come about how stupid of me not to know about a PG in the first place so bring it on!!!!

Everyone has their personal reasons for going BR & we aren't here to judge in any way (well, I wouldn't anyway).

The bare facts are, that you ARE BR & from what you have said, you are likely to have an IPA.

The fact that you didn't know you were guarantor isn't relevant here & now. It's obviously an important factor in your BR but it's done & the next stage is your SOA & OR interview.

If you want to post your SOA, people will be happy to go through it with you so that you don't miss out important items. However, my original post still stands that people won't help you to dodge an IPA.

scedminc

owlet wrote: »

Everyone has their personal reasons for going BR & we aren't here to judge in any way (well, I wouldn't anyway).

The bare facts are, that you ARE BR & from what you have said, you are likely to have an IPA.

The fact that you didn't know you were guarantor isn't relevant here & now. It's obviously an important factor in your BR but it's done & the next stage is your SOA & OR interview.

If you want to post your SOA, people will be happy to go through it with you so that you don't miss out important items. However, my original post still stands that people won't help you to dodge an IPA.

Hi,

My comments were really targeted at you to be honest.

Ok so I had my OR interviews months ago and it's only know they have written to me asking for my income and expenditure.

Basically, I have had no income and I can continue to do so either by living off my wifes money which the company made and she can continue drawing wages herself. If the company continued in its original form then I would probably be seen as a defacto/shadow director however part of the company could still trade as it would not be possible to show that I was acting as a defacto/shadow director at all.

The other option I was on about was to set up self employed with this section of the company but I do not see the need.

So my point is the OR knows the company couldn't trade as I was honest about the position in the first place at the interview and therefore technically I was made unemployed.

So the point still remains if I live off my wife then I can avoid the IPA as the OR cannot insist that I find a job or contribute towards the household bills can they?

Don't get me wrong, if I had created this debt then I would be more than happy to pay an IPA but I can easily survive the next 5 months without doing so if the above applies?

owlet

scedminc wrote: »

Hi,

My comments were really targeted at you to be honest.

Ok so I had my OR interviews months ago and it's only know they have written to me asking for my income and expenditure.

Basically, I have had no income and I can continue to do so either by living off my wifes money which the company made and she can continue drawing wages herself. If the company continued in its original form then I would probably be seen as a defacto/shadow director however part of the company could still trade as it would not be possible to show that I was acting as a defacto/shadow director at all.

The other option I was on about was to set up self employed with this section of the company but I do not see the need.

So my point is the OR knows the company couldn't trade as I was honest about the position in the first place at the interview and therefore technically I was made unemployed.

So the point still remains if I live off my wife then I can avoid the IPA as the OR cannot insist that I find a job or contribute towards the household bills can they?

Don't get me wrong, if I had created this debt then I would be more than happy to pay an IPA but I can easily survive the next 5 months without doing so if the above applies?

I'm not really sure why your comments were aimed at my post in particular, when I was advising caution & you yourself said you wanted to dodge an IPA & listed options for doing so.

No, the OR can't force you to get a job & if you are living off your wife's earnings - then that is what you put on your SOA. All I was saying, was be truthful because if you start fabricating it's likely to come back at you.

My intention wasn't to be nasty or unhelpful.

Edit: If you would like us to look through your SOA, then as I said before, pop it up & we can try and help.

scedminc

owlet wrote: »

I'm not really sure why your comments were aimed at my post in particular, when I was advising caution & you yourself said you wanted to dodge an IPA & listed options for doing so.

No, the OR can't force you to get a job & if you are living off your wife's earnings - then that is what you put on your SOA. All I was saying, was be truthful because if you start fabricating it's likely to come back at you.

My intention wasn't to be nasty or unhelpful.

Edit: If you would like us to look through your SOA, then as I said before, pop it up & we can try and help.

OMG I'M SO SORRY IT SHOULD READ NOT TARGETED AT YOU

Ok i'm not trying to fabricate anything because I have the option of making money or living off my wifes money.

However if I put her money down on the SOA then surely the OR can't setup an IPA because thats my wifes money and its not for her to pay for my BR?

owlet

scedminc wrote: »

OMG I'M SO SORRY IT SHOULD READ NOT TARGETED AT YOU

Ok i'm not trying to fabricate anything because I have the option of making money or living off my wifes money.

However if I put her money down on the SOA then surely the OR can't setup an IPA because thats my wifes money and its not for her to pay for my BR?

Lol no problem!

You can put your income & expenditure only on the SOA. If your income is zero, then that is what you put but your expenditure has to be zero too. You can add a note to explain your circumstances & that your wife has taken on the responsibility for financing the household until you find employment.

Whether the OR will want to see evidence that your wife can afford to pay for absolutely everything, I don't know but I imagine that they would want to see some proof. However, the OR can't set up an IPA on your wife's income. She is not responsible for your debts.

I have no idea though about the business & the issue of shadow directorship. That's way out of my league!