Bankrupt. Can I request a lower salary to avoid an IPA?

MrMime23

I went bankrupt in February. I’ve managed to find a new job and the salary on offer will mean I will pay towards an IPA. I’m currently not signed up to one because I had no income in the months leading to the bankruptcy, so they’ve delayed the discussion for a few months until I’m settled. Can I request from my new employer a salary reduction to bring me under the IPA threshold? I’m still in the probation phase and it’s a small business so I will be able to ask the owner directly in a semi informal way. My thinking is I’d rather have a reduced salary for 11 months then be done, instead than having roughly the same take home pay anyway, but for three years. 

sammyjammy

You don't ask you don't get but will you explain why?  In my personal opinion its bordering on fraud.

MrMime23

I would be truthful and explain why. I feel it can’t be fraud if we agree to the salary. But maybe will be seen that way. I don’t know

luvchocolate

Would it be possible to pay into the pension scheme?

MrMime23

Oh I haven’t thought of that. I’ll look into that

fatbelly

You can't make 'excessive pension contributions'. They're wise to that.

The official receiver should, before entering into any qualifying agreement, consider whether there have been any excessive contributions into the pension fund (Section 342A ) and, if so, the agreement should not be proceeded with unless recovery of the excessive contributions forms part of the agreement.

Payments into a pension deducted at source from earnings or made to a private pension scheme should be included provided they are reasonable and do not represent additional voluntary contributions. In most cases an individual can elect to stop or reduce their contributions to a personal pension for a period of time and if the payments seem to be unusually high the bankrupt should be asked to make this election for the period of the IPA. Saving for a future pension is acceptable but excessive contributions should not be made at the expense of creditors. In the same way where the employer operates a Save As You Earn (SAYE) scheme, where a proportion of the bankrupt’s income is deducted at source to purchase shares in the employing company, this expenditure should not be included.

In answer to your question, - you can't request a lower salary to avoid an IPA, but you may be able to be paid a lower salary for another reason

flipflopflo

Are you going to say to the OR that your SOA hasn’t changed now you are working? 

You may find that with the additional expenses that you have from working that you won’t  end up paying an IPA. 

Why not pop up your SOA here and we might see something you are missing. 

https://www.lemonfool.co.uk/financecalculators/soa.php

Fill it in, format to MSE and copy and paste into the thread.  

sourcrates

I would agree with the above, I think its much more preferable to look again at your out goings, surely if you have returned to work, your expenses must have risen, despite the higher salary.

luvchocolate

I didn't mean to pay a silly amount into pension. 
I paid 6% in which is totally acceptable