Bankruptcy.......earnings.................tax code

maxmycardagain

In the back of my mind i seem to recall that the Insolvency service and HMRC monitor a BR's wages via a special tax code to channel taxes to creditors (or something along those lines)?...
Is this only if a 5 year payment plan is imposed? 

again my recollection is a big hazy
 

Dazed_and_C0nfused

In some situations a bankrupt will have a NT (no tax) code (operated on a non cumulative basis) after the bankruptcy through to the end of the tax year the bankruptcy occurred.

I think you have to continue with the same employer you were with at the point bankruptcy occurred.  If you change jobs the NT tax code ends.

maxmycardagain

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Dazed_and_C0nfused

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Yes, that's not at all unusual.

maxmycardagain

Dazed_and_C0nfused said:

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Yes, that's not at all unusual.

What duration is a BR payment plan and at what level of disposable income us one imposed? 

flipflopflo

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Not really. All that happens is the IS take the tax that you pay to the HMRC so nothing really changes for you. 

We have seen on here the OR letting the person keep the tax because they don’t earn a lot. 

ToxtethO'Grady

maxmycardagain said:

Dazed_and_C0nfused said:

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Yes, that's not at all unusual.

What duration is a BR payment plan and at what level of disposable income us one imposed? 

Income Payment Agreements/Orders will usually be 36 months from the date they are initiated and must be set up within the 12 months of the bankrupt being undischarged.

Technically they can set one up on any disposal income above £20 per month however they may not as it is too low and not taking into account emergencies etc during the year. Up to the OR

maxmycardagain

ToxtethO'Grady said:

maxmycardagain said:

Dazed_and_C0nfused said:

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Yes, that's not at all unusual.

What duration is a BR payment plan and at what level of disposable income us one imposed? 

Income Payment Agreements/Orders will usually be 36 months from the date they are initiated and must be set up within the 12 months of the bankrupt being undischarged.

Technically they can set one up on any disposal income above £20 per month however they may not as it is too low and not taking into account emergencies etc during the year. Up to the OR

and DRO is a £75 allowed

sourcrates

maxmycardagain said:

ToxtethO'Grady said:

maxmycardagain said:

Dazed_and_C0nfused said:

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Yes, that's not at all unusual.

What duration is a BR payment plan and at what level of disposable income us one imposed? 

Income Payment Agreements/Orders will usually be 36 months from the date they are initiated and must be set up within the 12 months of the bankrupt being undischarged.

Technically they can set one up on any disposal income above £20 per month however they may not as it is too low and not taking into account emergencies etc during the year. Up to the OR

and DRO is a £75 allowed

Can you explain what you mean by this ?

The £75 is the disposable income limit in a DRO, not anything to do with any IPA, as that does not exist in a DRO arrangement.

maxmycardagain

sourcrates said:

maxmycardagain said:

ToxtethO'Grady said:

maxmycardagain said:

Dazed_and_C0nfused said:

maxmycardagain said:

Presumably this COULD raise nett wages to the point a BR payment plane might be imposed then?

Yes, that's not at all unusual.

What duration is a BR payment plan and at what level of disposable income us one imposed? 

Income Payment Agreements/Orders will usually be 36 months from the date they are initiated and must be set up within the 12 months of the bankrupt being undischarged.

Technically they can set one up on any disposal income above £20 per month however they may not as it is too low and not taking into account emergencies etc during the year. Up to the OR

and DRO is a £75 allowed

Can you explain what you mean by this ?

The £75 is the disposable income limit in a DRO, not anything to do with any IPA, as that does not exist in a DRO arrangement.

To be eligible for a DRO, you must meet these criteria:

• you owe £30,000 or less
• you have less than £75 to spend each month, after paying tax, national insurance and normal household expenses

So.... if the disposable is over £75 per month a DRO will not be granted