Can I avoid an IPA

Banquo21

Lying to avoid an IPA leads to serious repercussions. Please be careful. You are bankrupt for a reason. You say you didn't know about the Personal Guarantee. Mine is I gambled loans away without thinking of the consequences. Both are lapses in concentration and to justify not paying into an IPA just because of this is very dangerous.

Good luck

scedminc

I think I may have worded all this wrong to give the impression that I intend solely on lying.

Basically I do not need to lie. I currently have no income myself but if I wanted to then I could.

If I were to decide to have an income then my disposable would likely be a couple of thousand each month that the OR would take.

Working hard for the OR to take that amount plus more with growth over the next 3 years makes it not worth me having an income and I may as well stay as I am with my wife paying for everything until I am discharged.

coolcait

If you're in Scotland, then the letter is probably a request for a Current State of Affairs.


The trustee has to ask for this after six months (OK, they're a bit late).


You simply fill it in honestly, with details of your current financial situation. If you currently have no income of your own, that's what you put down.


If you're not in Scotland, the other comments on this thread - all of which seem relevant and useful - appear to cover the position for other parts of the UK.

elljay

scedminc wrote: »

Working hard for the OR to take that amount plus more with growth over the next 3 years makes it not worth me having an income and I may as well stay as I am with my wife paying for everything until I am discharged.

I don't get this, other people have said the same. You're not working for the OR to pocket the money and run off to the Bahamas. While they certainly take their fees, the rest of your IPA will go towards repayment of your debts. As someone else said, there is a reason that you are bankrupt, that's because you owed money, money for some reason you made use of and were unable to pay back.

If I was a creditor I'd be really upset reading about people trying to find ways round paying an IPA. Surely we should do our best to make amends, if it's within our power, otherwise it just perpetuates the commonly held myth about bankruptcy being akin to fraud.

alastairq

Everyone on here, at some point or another, has made efforts to 'avoid'....or rather, minimise the chance of, an IPA.

This whole website is full of advice on how to avoid paying when one doesn't 'have' to.

It's why Martin started in the first place.

So there should be no moral issue with someone who is BR, doing their best to minimise their surplus income.

We all do things to minimise paying out more money that we need to.

Witness how many of us/you, slow down when approaching a speed camera....instead of continuing on as previously....then speeding up again?..Simply to minimise a risk of gaining a fine? [ We should not be flouting the Law in the first place, should we?]

How many of us adjust how we take our pensions, to minimise the amount of tax we pay?

How many of you save in a tax-free ISA, to avoid paying tax on savings?

All very laudable, I hear you think....but, the country [and its not the only one] is in a dire financial state because there is insufficient tax going into the Treasury......so shouldn't we all do our utmost to pay more tax, to get the country out of the financial state it is in?

Well, BR isn't about 'avoidance' of paying.....just the opposite....it empowers the Court to settle the debt....and not some arbitrary individual who only has self-interest .

To the OP....if you can cope without income for the period whilst Undischarged, go for it.

owlet

alastairq wrote: »

Everyone on here, at some point or another, has made efforts to 'avoid'....or rather, minimise the chance of, an IPA.

This whole website is full of advice on how to avoid paying when one doesn't 'have' to.

It's why Martin started in the first place.

So there should be no moral issue with someone who is BR, doing their best to minimise their surplus income.

We all do things to minimise paying out more money that we need to.

Witness how many of us/you, slow down when approaching a speed camera....instead of continuing on as previously....then speeding up again?..Simply to minimise a risk of gaining a fine? [ We should not be flouting the Law in the first place, should we?]

How many of us adjust how we take our pensions, to minimise the amount of tax we pay?

How many of you save in a tax-free ISA, to avoid paying tax on savings?

All very laudable, I hear you think....but, the country [and its not the only one] is in a dire financial state because there is insufficient tax going into the Treasury......so shouldn't we all do our utmost to pay more tax, to get the country out of the financial state it is in?

Well, BR isn't about 'avoidance' of paying.....just the opposite....it empowers the Court to settle the debt....and not some arbitrary individual who only has self-interest .

To the OP....if you can cope without income for the period whilst Undischarged, go for it.

I agree entirely with Alistair on this. I came on to say that I would do just that if my OH could support me. If you are not working - then you are not working - simples! As I said in my prevous post, as long as you are being truthful then there is nothing to worry about.