IPA - quit job before discharge

Summerjasmin

Hi there!

I got an IPA for 36 month.

What happen if I quit my job shortly before my discharge so i will not have any income anymore.
Sure, my IPA will be stopped.

But: Does it mean my IPA is then canceled and I can not get a new one after my discharge, or has it just a break and i am even after my discharge still liable to tell the OR about my financial circumstances?

Many thanks!

Summerjasmin

Butts

Summerjasmin wrote: »

Hi there!

I got an IPA for 36 month.

What happen if I quit my job shortly before my discharge so i will not have any income anymore.
Sure, my IPA will be stopped.

But: Does it mean my IPA is then canceled and I can not get a new one after my discharge, or has it just a break and i am even after my discharge still liable to tell the OR about my financial circumstances?

Many thanks!

Summerjasmin

Bad news I fear the IPA will be suspended until your circumstances improve as it was issued prior to discharge. Should you get another job before it's expiry date with sufficient income it will reawaken and come back to haunt you.

The key to an "IPA FREE" Bankruptcy is to avoid one until you are discharged then that's it - you can go from 10K to 100K and keep the lot.

debt_doctor

Hi,
I agree. It would run in the background for 3 years from when it started, but running at nil payment.
DD

haggis0073

so what would happen if you quit your job just before bankruptcy, would that be frowned upon by the OR. I am worried that i will end up with an ipa if the OR decides to cut on my expenditure. And i been thinking of leaving this job for a part time job due to my wife getting diagnosis for crohns disease, but ideally would like to avoid an ipa for the first year before doing so

debt_doctor

haggis0073 wrote: »

so what would happen if you quit your job just before bankruptcy, would that be frowned upon by the OR. I am worried that i will end up with an ipa if the OR decides to cut on my expenditure. And i been thinking of leaving this job for a part time job due to my wife getting diagnosis for crohns disease, but ideally would like to avoid an ipa for the first year before doing so

It is entirely up to you whether you work or not, take a new job, go part time or any other combination. Some people use BR as an opportunity to carve a new career with non of the debt that usually holds people back.
DD

Butts

haggis0073 wrote: »

so what would happen if you quit your job just before bankruptcy, would that be frowned upon by the OR. I am worried that i will end up with an ipa if the OR decides to cut on my expenditure. And i been thinking of leaving this job for a part time job due to my wife getting diagnosis for crohns disease, but ideally would like to avoid an ipa for the first year before doing so

Well I reduced my salary by half three months before the bankriptcy and told the OR interviewer the salary figure put on my application was an average of what I had earned in the last three months plus the amount I would earn this month.

She did not bat an eyelid. I was lucky to be able to afford to do this as I had moved down from Scotland deliberately to avoid an IPA 6 months earler.

Up there after my year of "cold turkey" discharge would be blighted by an IPA being able to kick in for up to three years after discharge whereas in England and Wales no IPA can be started after discharge. A four year sentence became a 1 year one.

It was (i hope) worth the near triple bankruptcy fee down here compared to Scotland. Once I'm clear the after burners will open up and I can earn what I like

haggis0073

thats interesting to know cheers guys, again learning more everyday from just this forum alone lol. I have another appointment on tuesday with debt advisor to produce my revised SOA (just want to make sure everything is correct) so again as mentioned on another thread i never realised it was a good thing to have a negative shortfall(think thats the correct way of saying it).

Just out of curiosity why would the OR not mention the fact that you seem to have more going out than coming in on your SOA

debt_doctor

haggis0073 wrote: »

Just out of curiosity why would the OR not mention the fact that you seem to have more going out than coming in on your SOA

Yes they would - and a negative financial statement ALWAYS needs an explanation.
The explanation is that (in bankruptcy) these are my reasonable domestic needs but unfortunately I do not have enough income at the moment to satisfy them. This means that currently I am having to reduce my (housekeeping/ travel/ other costs) still further to make this budget balance.
DD

haggis0073

ahhh that makes perfect sense thanks DD

Summerjasmin

Thank you all for your replies.

But I do not understand this completely.

Let´s have a look more detailed:

- I am declared bankrupt since June 2017
- I had an income of 20.000 a year
- In July i got an IPA saying i have to pay my TAX (only my tax) as soon as i got the NT Taxcode till the and of the tax year to clark willmot. Nothing else, no further payments after end of tax-year in this IPA.

In my understanding that meant after the end of tax year the IPA would have been finished and i would not have to do any further payments till and after my discharge in June 2018.
And because there was nothing more declared, there would have been no need to tell the OR any changes in my income after discharge.

Correct?


So, now my income has increased to 25.000 a year.
I told the OR and they sent me an new IPA saying i have to pay my tax till and of tax-year and additional 100 Pounds a month till and of tax year and from the new tax year 100 Pounds a month till 2020.

So far so good.

In my understanding, it is only allowed to set up one IPA before discharge and this IPA can be changed if circumctances change.
So if i understand it right, my first IPA just changed because of changed circumctances.

So, now you say that if i would quit my job before discharge, i would still be liable to tell OR about any changes in income till the IPA ends. That would be 2020.

Can you explain this more detailed please? What would be written in the letter i would get?
Something like "your ipa is on hold, if your income change again till 2020 please inform the OR" ?

But.. let´s say this is the case and i would get a letter like that..... what is if I would do it a diffrent way:

I do not quit my job before discharge and get a letter saying i have to inform till 2020.
I do reduce my income through less working hours before end of tax year instead.

In my understanding i then should get the same IPA as i had at the beginning which says i have to pay my tax till end of tax year. And so i would be free from the IPA after the end of tax year and would not have to give notice of changes after discharge.
Is it correct or am I wrong?

I can not see why I should get something diffrent as my first IPA if i reduce my income. And with the wirst IPA everything would have been done at end of tax year.


Many thanks for your help guys!

Summerjasmin

peterkay369

Summerjasmin wrote: »

In my understanding i then should get the same IPA as i had at the beginning which says i have to pay my tax till end of tax year. And so i would be free from the IPA after the end of tax year and would not have to give notice of changes after discharge.
Is it correct or am I wrong?

Unfortunately, I think you are wrong.
The way I understand it to be, is now that the IPA has been set up, you will have to notify the OR of any change in circumstances for the next 3 years. Hopefully someone else will be able to confirm, but I believe I am correct.