Quick bankruptcy questions
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fabforty
Posts: 809 Forumite
I have a read a couple of other threads and the sticky but I'm getting confused - might be my medication 
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I understand that bankruptcy lasts one year (normally), and that an IPA lasts three years. If someone goes bankrupt without an IPA - on UC, with no excess income - and they are discharged after one year. If they then start working within the next two years, can an IPA be put in place, or is it a case of the bankruptcy is finished and that's it?
Sorry if this has already been asked.
Secondly, could a CCJ for overpayment of salary be included in bankruptcy? There is no suggestion of wrongdoing on the part of the employee - a clerical error meant they were overpaid approx £800 p.a for 17 years :eek: Nobody noticed until they took early retirement and there was a discrepancy. Add interest and court costs (as employee has not agreed to repay), and if judgment is made against them - they have no means of repaying, hence bankruptcy.
.I understand that bankruptcy lasts one year (normally), and that an IPA lasts three years. If someone goes bankrupt without an IPA - on UC, with no excess income - and they are discharged after one year. If they then start working within the next two years, can an IPA be put in place, or is it a case of the bankruptcy is finished and that's it?
Sorry if this has already been asked.
Secondly, could a CCJ for overpayment of salary be included in bankruptcy? There is no suggestion of wrongdoing on the part of the employee - a clerical error meant they were overpaid approx £800 p.a for 17 years :eek: Nobody noticed until they took early retirement and there was a discrepancy. Add interest and court costs (as employee has not agreed to repay), and if judgment is made against them - they have no means of repaying, hence bankruptcy.
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Comments
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First question: If you haven't had an IPA set by the time you are discharged at the end of the year - then you have no further financial obligation to the OR. Once discharged, no IPA can be set up.
CCJ's are included in bankruptcy unless they are for certain exempt debts such a fraudulent benefits claim0 -
Great, thank you x0
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Is this the same across the UK or does it differ between England, Scotland etc?TheGardener wrote: »First question: If you haven't had an IPA set by the time you are discharged at the end of the year - then you have no further financial obligation to the OR. Once discharged, no IPA can be set up.0 -
The same as far as I am aware, unless something has changed recently.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
I was told this morning that in Scotland an IPA is now known as a Debtor Contribution Order (DCO) and one is set up in all sequestration cases (bankruptcies), if the debtor has an income too low to collect anything from then the DCO is set at zero but because it's already in place it can be reassessed anytime in the four years it's active for.
Guess this answers my question about whether hubby would have to declare occasional work after discharge
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