I can live with having no bank accounts

fermi

renegadefm wrote: »

Am I right?

Not quite, because the OR will not permit excessive spending, especially if they believe it is to avoid or reduce any IPA.

But you should look at your budget and make sure you aren't missing anything essential out or are leaving yourself short anywhere.

Have a read through this Link: Income Payment Agreements (IPAs)

renegadefm

fermi wrote: »

Not quite, because the OR will not permit excessive spending, especially if they believe it is to avoid or reduce any IPA.

But you should look at your budget and make sure you aren't missing anything essential out or are leaving yourself short anywhere.

Have a read through this Link: Income Payment Agreements (IPAs)

Thank's I will read that later, it just seems ironic that the OR will take some money to pay the IPA if he sees I can afford it because without my wife working my wages was odviously not enough which is why I gradually got into debt in the first place.

I know I did mention I could potentially save what I was paying on the debts which is £777 but more realistically that is much lower.

The other ironic thing is it would have been nice to save a few thousand while I'm bankrupt so that if any emercencies come up like my car or washing machine breaks down etc etc I have some spare cash, but if the OR takes money its less money I could have saved to start life with after bankruptcy, or is that the nasty sting in the tail of BR?

fermi

I wouldn't say it is a nasty sting. The OR only takes a percentage leaving you with the rest.

As you have said, without the bankruptcy you would have been paying it all to the creditors for god knows how long. In the bankruptcy you would be paying only a percentage for 3 years.

maxmycardagain

from what i remember have £100 a week surplus = nil ipa, £150 surplus = £50 ipa

im no maths genius but it looks like a sting to me...

renegadefm

fermi wrote: »

I wouldn't say it is a nasty sting. The OR only takes a percentage leaving you with the rest.

As you have said, without the bankruptcy you would have been paying it all to the creditors for god knows how long. In the bankruptcy you would be paying only a percentage for 3 years.

Oh yes I quite see what you mean, I don't want to seem disrecpectfull to the OR or anything, but I'm just worryed that the reason I gradually got into debt is when I entered married life and had children etc my wages proved not enough or else I wouldn't have ended up like this, see my problem has been very gradual over 17 years the debts have slowely piled up and up, and I've always tryed concolidation loans etc to try and fight it but it always beats me due to things coming up in my life like house maintainance, cars always going wrong etc etc, sorry heartbreak story over, but realistically what I've been paying on the debts which has peaked at £777 has mean't we had virtually nothing to live on for so long now.

So I guess what I'm trying to say is I concider I've suffered enough, 17 years of paying credit cards etc is a lifetime wouldn't you say, and I think I've been lead up the garden path from my local advice bureau because she kept bragging how I'll be able to save all the pennies I've been paying out on my debts, which really encouraged me to go BR in the end, but now I'm BR there seems so many catches to it all.

Like if my OR sets up an IPA, I could potentially pay £100 a month for 3 years, so it would seem I'm not out of the woods yet, would I be right in thinking that?

fermi

maxmycardagain wrote: »

from what i remember have £100 a week surplus = nil ipa, £150 surplus = £50 ipa

im no maths genius but it looks like a sting to me...

Nope. The threshold is £100 per month not week.

The percentage and amount possible under an IPA is here:

peachyprice

Did you receive any advice before you went BR? It seems you are missing vital information as to what will happen to you in the near future. Your debts have been wiped out, but if you are now left with a substantial surplus the OR will want a proportion to pay your creditors towards your debt.

A rough guide to the amount you may have to pay in an IPA for 3 years are below. The 1st column is your surplus, the second it the amount payable, the 3rd is the percentage.



50 Nil
60 Nil
70 Nil
80 Nil
90 Nil
100 50 50
110 55 50
120 60 50
130 65 50
140 70 50
150 75 50
160 80 50
170 85 50
180 90 50
190 95 50
200 100 50
210 105 50
220 110 50
230 115 50
240 120 50
250 150 60
260 156 60
270 162 60
280 168 60
290 174 60
300 180 60
310 186 60
320 192 60
330 198 60
340 204 60
350 231 66
360 238 66
370 244 66
380 251 66
390 257 66
400 264 66
410 271 66
420 277 66
430 284 66
440 290 66
450 297 66
460 304 66
470 310 66
480 317 66
490 323 66
500 350 70
510 357 70
520 364 70
530 371 70
540 378 70
550 385 70
560 392 70
570 399 70
580 406 70
590 413 70
600 420 70

fermi

Hi again renegadefm

It depends what you mean by "out of the woods". The debts are gone, and your creditors can no longer make demands of you.

You may have to pay something back to the OR for the next 3 years, but it will be much much less than you were paying.

And in paying something back to the OR, the overriding principle is that the IPA should not reduce your income below the level necessary for you to meet your family's needs. If during the IPA your income goes down it is the type of agreement that can be reduced or suspended.

peachyprice

Oops Fermi beat me to it! And his table is much neater.:T

renegadefm

fermi wrote: »

Hi again renegadefm

It depends what you mean by "out of the woods". The debts are gone, and your creditors can no longer make demands of you.

You may have to pay something back to the OR for the next 3 years, but it will be much much less than you were paying.

And in paying something back to the OR, the overriding principle is that the IPA should not reduce your income below the level necessary for you to meet your family's needs. If during the IPA your income goes down it is the type of agreement that can be reduced or suspended.

Thanks fermi, that has reasured me somehow;)