Annual bonus

nick70

Hi, afternoon - I'm interested to find out what happens to bonus payments following discharge from bankruptcy, but still under an IPA arrangement. I was made bankrupt in Nov 2016 and have had an IPA in place for the last 16 months (no mention of bonus but a clause states I need to make O/R aware of a change of income). I received a bonus, this time last year which was paid into my bankruptcy and have recently received a letter from CW requesting I forward payslip(s) for this period again - I received a discretionary bonus (equivalent to 6 months salary) at the end of last week so they'll obviously see one has been paid again.

Does the O/R still have automatic entitlement to all of it now that I am discharged (November 2017)? It is not particularly clear on both the insolvency site (just mentions they might vary the IPA) and other web forums which appear to provide inconclusive advice on how a bonus would be seen - windfall etc? If it is indeed the case that they'll claim (expecting it), then what is the process - do I need to sign a variation of the IPA agreement, can I refuse to sign? Or does the O/R generally take a reasonable approach and ask for say 50% of it as it is discretionary and I've work bl**dy hard for it? Any thoughts, guidance would be helpful and much appreciated.

luvchocolate

Hi as you are aware during the 3 year I.P.A you must inform the O.R within 21 days of any change in your income and outgoings.
Its a tricky one to answer as each case could be different and depending on how big the bonus is.

3 years is a small part of your life though and the relief you will feel when its over will be immense .....fingers crossed for you

National_Debtline

Hi Nick


This is what the Insolvency Service's Technical Manual says about bonuses:


Bonus income can be claimed via an IPA, either as a lump sum (in the same way as pension lump sum payments are claimable, see paragraph 31.7.52) or incorporated into monthly payments. If a bonus is paid to the (former) bankrupt whilst an IPA is already in force, the IPA may be varied to claim the bonus, including where the bonus is received after discharge.


You can find the link to this information here https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part3/part_3.htm#31.7.33


Best wishes


Susie
@natdebtline

nick70

Thank you both for your response, it is much appreciated. Will be interesting what they say, more than likely they'll take the lot!! Agree 3 years maybe relatively short but for myself and the family this has been a process that's taken about 7 years, from when the proverbial hit the fan to now - can't wait till it's all done as the novelty value has most definitely worn off by now!!

The_Real_Cheddar_Bob

i'm assuming you have already received your payslip as you were paid last week?


Your HR department may very well send you two payslips....not that I am suggesting this is legal or right, but it could be possible.

nick70

Yes I have just received it and it's on one piece of paper unfortunately!! Just out of interest what oversight do they have i.e. can they 'see' my bank account, my earnings via HMRC etc or is it purely whats on my payslip?