Have I made a mistake going Bankrupt?

AmIdone4?

Hello All,

Well I'm totally new to this business of forums... and bankruptcy by the way! (beginning of November).

To get straight to it, I'm writing this thread following the shocking revelation of IPA's!!!!! I had no idea that such things existed and had been advised by a local advice service whilst processing my bankruptcy that I would only be paying towards my "estate" - or whatever the word is? sorry it's late and i'm knackered - for 1 year!

A big reason for going BR was to get some control in my life and to remove the emotional burdon of the debt by next winter... It seems this won't happen as an IPA lasts for 3 years :mad: (God, the thought is soul destroying!!!)

At the time of going BR I was unemployed (and still am), and have been unemeployed since 2002 following unfortunate events and illness (get the violins out!) But, following a couple of formailities I should be working, and given how tough it's been to get back into work, I can't pass this opportunity up and wait for the early discharge that the OR spoke about!!!!

So now I've got the joyous prospect of an IPA, and after so long without money, it's a bitter pill to swollow Is there anything I can do???

Prev Debt £12,500 (I know it's not much, but I didn't expect to be working yet)
New Job Salary £16,500


Applologies for the long message. Hope to hear from somebody soon...

madoldbat

Welcome AI4,
You will find lots of help and support here there are a lot of people in your position ,illness and unexpected/unavoidable events causing caios in their lives.Regretfully I know nothing about IVAs but some one who does will be along shortly.

Richard_S

Aid4,

Have you agreed to the IPA yet?

Can you post the figures you submitted on your SOA/budget, and some accompanying information? E.g. whether you live with a partner and have any dependents.

Your gross salary is £1,375 pcm; do you still live with your parents?

Regards

Richard

tigerfeet2006

Hi and welcome to the board.

Please would you be kind enough and do as Richard suggests for us. We are not just being nosy but it will help us help you.

Don't forget starting work your SOA will alter with different expenses. Also you might want to add some things that are essential but that you just couldn't afford before.

Who advised you in the first place?

fiveyearplan

Agree with both Richard and Tiger, post your I&E and we can help you. With your salary it looks like you won't have anything left over to pay (unless you have no living expenses.

Broken_hearted

Eben if you do have to pay something back, you are still in a better position than you were and three years isn't a long time.

wherediditallgo

An IPA is for 36 months & is based upon your surplus income, i.e. whatever income you have left over after your normal living expenses are taken into account. The OR won’t take all of your surplus income, only a proportion of it, & the amount can be reviewed whenever you have a change of circumstances. You usually get 14 days in which to sign the IPA agreement & return it to the OR. If the OR has already worked out how much you’re supposed to pay on an IPA & has sent you the agreement with the amount but you haven’t signed it yet, please let the OR know your concerns & post your SOA here so that we can help you with anything you should be claiming for but may have omitted. If you haven’t been told the figure yet, then posting your SOA is good as you’ll be able to let the OR know of any omissions before your case is finally assessed.

On your salary it’s quite possible that you may not have an IPA to pay at all, but this will depend on your outgoings. But if you do have to pay into an IPA, it’s really not as painful an experience as you think it might be. I pay into one, & when I think of the stress I had to deal with before BR with creditor letters & phone-calls, robbing Peter to pay Paul each month etc, believe me making the call once a month to pay my money is nothing in comparison. Whatever you were paying (or trying to pay) towards your debts before going BR, an IPA will be nothing like as much, plus you won’t have to deal with the creditors to make the payment. Please post your SOA, but talk to your OR as well – there is room for some negotiation in what allowances are made.

AmIdone4?

Richard_S wrote: »

Aid4,

Have you agreed to the IPA yet?

Can you post the figures you submitted on your SOA/budget, and some accompanying information? E.g. whether you live with a partner and have any dependents.

Your gross salary is £1,375 pcm; do you still live with your parents?

Regards

Richard

Hi Richard,

Thanks for your reply, very much appreciated. In answer to your questions; I haven't agreed my IPA yet and I live on my own with no dependants.

My SAO was very close to this (per month):

Gas £26,
Electric £34,
Rent £280.67,
Food £80,
Council tax £57.62,
Water £17.00,
Clothing £20,
Media package(inc. mobile) £40,
Travel £41.80

Total £597.09

I've started consider some of the helpful points made in my replies but I'll see what you and the others think first.


Cheers

Craig
:xmastree: Thanks also to madoldbat, tigerfeet, 5yrplan, broken hearted,wherediditallgo. This forum business is great!:T

fermi

Will you incur any additional expenses resulting from the new job?

Additional travel/clothing/food etc?

I make the net take home on £16,500 to be £1,087 pcm (assuming normal tax).

So a surplus of £490 pcm on the above budget. That would make an IPA of about £323 per month (ish).

Lot's of assumptions there, but that would leave you £166 per month of your surplus for yourself. That's not too insignificant, and that's without allowing for extra expenses.

fermi

Other people will add more, but £10 per month for a haricut?

I don't see that on your SOA.

AmIdone4?

tigerfeet2006 wrote: »

Hi and welcome to the board.

Please would you be kind enough and do as Richard suggests for us. We are not just being nosy but it will help us help you.

Don't forget starting work your SOA will alter with different expenses. Also you might want to add some things that are essential but that you just couldn't afford before.

Who advised you in the first place?

Hi Tigerfeet

A local money advice charity advised me on my BR. The support I recieved from them was great, but they did tell me, that on finding employment, I'd only have to make payments for a year! I will have to phone them in the new year.

Thanks for the advice, I revising my SOA at the mo.

Cheers

Craig