Forum Home» Bankruptcy & Living With It

Changing job mid way through bankruptcy

New Post Advanced Search

Changing job mid way through bankruptcy

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
5 replies 1.6K views
Daz1984Daz1984 Forumite
7 posts
First Post
MoneySaving Newbie
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
Hi, my bankruptcy ends on 12 December. I have no iva and normal tax code. I could stick it out till December but I'm bored and want a better job now.

I've got a permanent job atm but will go through agency on new jobs. Could be a different job each week also could miss a few days so cant give a definite on how much I will earn each month. Some will be self employed and some paid through umbrella with more fees.

I was thinking of estimating and then going way over on expenses. Would they accept my expenses then wait to see how much I'm paid then do iva if paid to much.

I want to avoid a iva and be able to get a new job.

Replies

  • TheGardenerTheGardener Forumite
    3K posts
    Tenth Anniversary 1,000 Posts
    ✭✭✭✭
    I think you mean IPA? (Income Payment Agreement) not IVA (Individual Voluntary Arrangement - which is an alternative to BR )

    The OR will most likely take an average over a period of a few months.
  • Daz1984Daz1984 Forumite
    7 posts
    First Post
    MoneySaving Newbie
    Yeah ment ipa. So long as my wages over a few months stays under expenses I should be ok.
  • TheGardenerTheGardener Forumite
    3K posts
    Tenth Anniversary 1,000 Posts
    ✭✭✭✭
    Logically - yes.
  • edited 18 June 2019 at 2:48PM
    Somerset_La_La_LaSomerset_La_La_La Forumite
    995 posts
    Fifth Anniversary 500 Posts Name Dropper
    ✭✭✭
    edited 18 June 2019 at 2:48PM
    Going "way over on expenses" sounds like you intentionally want to deprive the OR/estate of the IPA. Which is likely why you haven't had many replies.

    It is, of course, an entirely reasonable chain of thought (since most gets gobbled up in fees and doesn't make it to the creditors anyway), HOWEVER - you are playing a very very dangerous game if that is the intention. Not accusing you of anything, but that's how it reads. If the OR reads your new SOA to that effect, it'll get tricky.

    Personally, if you don't want an IPA or to run the risk of OR taking action against you if they deem your "expenses" to be too high, I'd simply wait until December before changing jobs.

    If the OR initiates any kind of action prior to discharge (e.g. suspension of discharge, application for a BRO) it can drag on for a long time afterwards. It's just not worth it if you're not going to be comfortably below the relevant thresholds.

    Get discharged, then proceed with your life in whichever way you want to IMO - if that involves quitting your job the day after discharge, so be it - no IPA (as long as you are 100% you HAVE been discharged correctly)
    Used to work in Underwriting. Only the lender can give a definitive answer to queries
  • Daz1984Daz1984 Forumite
    7 posts
    First Post
    MoneySaving Newbie
    "Way over on expenses" way over budget is what I ment or a negative expense budget.

    My expenses atm are to the penny of my wages because I thought I had to have a reasonable budget. I left alot of stuff off and I have been -200 to -600 every month. Didnt see the point in putting it on my expenses.

    Talked to bankruptcy team they said just email the new income estimate and the increased expenses.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support