How much of any extra income should be paid to an IPA - ALL of it..?
sortingmyshitout
Posts: 25 Forumite
I'm self-employed and just started my three year IPA, in which the OR and I have agreed I pay about £250 a month.
I know that during bankruptcy my assets are their assets, so if a relative died and I inherited £10,000 I'd give all of that to my IPA to help pay off my (larger than £10k!) debt, correct? I'm completely fine with that, I think that's fair.
What if I secured a contract with a new client for £10,000? Is it expected that ALL of that go to my IPA?
I completely understand that I owe money and what's mine is theirs, and I think it's "fair" that all of that money SHOULD go to my IPA...
...but if it does, what incentive do I have as a self-employed to go out and pitch to and win new clients?
I feel it'd be in the OR's interest to take a portion of the money,even if that portion was (say) 90%. If they want 100% then they're probably doing themselves out of money as bankrupt individuals are unlikely to want to work harder to maximise their earning potential?
I know that during bankruptcy my assets are their assets, so if a relative died and I inherited £10,000 I'd give all of that to my IPA to help pay off my (larger than £10k!) debt, correct? I'm completely fine with that, I think that's fair.
What if I secured a contract with a new client for £10,000? Is it expected that ALL of that go to my IPA?
I completely understand that I owe money and what's mine is theirs, and I think it's "fair" that all of that money SHOULD go to my IPA...
...but if it does, what incentive do I have as a self-employed to go out and pitch to and win new clients?
I feel it'd be in the OR's interest to take a portion of the money,even if that portion was (say) 90%. If they want 100% then they're probably doing themselves out of money as bankrupt individuals are unlikely to want to work harder to maximise their earning potential?
0
Comments
-
i too would like to know what % of excess income the IS take from a bankrupt? i know someone on the cusp of going BR who is right now on benefits (UC) and there seems little incentive in finding a full time PAYE job only to have 3 years of working for (say) 10% of any excess income, the naysayers will cite the moral duty to pay the debts in BR but the BR is paying £600 in fees, a 3 year lead necklace (2 more than bankruptcy) on top of 6 years credit reference black-balling seems a tad harshNow we all know how it felt to play in the band on the Titanic...0
-
sortingmyshitout wrote: »I'm self-employed and just started my three year IPA, in which the OR and I have agreed I pay about £250 a month.
I know that during bankruptcy my assets are their assets, so if a relative died and I inherited £10,000 I'd give all of that to my IPA to help pay off my (larger than £10k!) debt, correct? I'm completely fine with that, I think that's fair.
What if I secured a contract with a new client for £10,000? Is it expected that ALL of that go to my IPA?
I completely understand that I owe money and what's mine is theirs, and I think it's "fair" that all of that money SHOULD go to my IPA...
...but if it does, what incentive do I have as a self-employed to go out and pitch to and win new clients?
I feel it'd be in the OR's interest to take a portion of the money,even if that portion was (say) 90%. If they want 100% then they're probably doing themselves out of money as bankrupt individuals are unlikely to want to work harder to maximise their earning potential?
makes you want to work cash in hand doesnt it...... :cool:Now we all know how it felt to play in the band on the Titanic...0 -
...but if it does, what incentive do I have as a self-employed to go out and pitch to and win new clients?
Use the time to get your head in a better place.
As far as work is concerned, use the time to set the business up to exploit new opportunities in a year's time, expand your network, investigate new opportunities etc
Depending on your work, this may be a time for "loss leaders" ie no profit made for the OR to take while your name/ business gains reputation instead of earnings.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
maxmycardagain wrote: »makes you want to work cash in hand doesnt it...... :cool:
Or delay invoicing/ income streams.
Any change in income needs to be reported within 3 weeks....so money needs to arrive (because until it does, you have no change) at least 49 weeks from bankruptcy.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Use the time to get your head in a better place.
As far as work is concerned, use the time to set the business up to exploit new opportunities in a year's time, expand your network, investigate new opportunities etc
Depending on your work, this may be a time for "loss leaders" ie no profit made for the OR to take while your name/ business gains reputation instead of earnings.
If it was just a year I'd be game for all of that, but my IPA is THREE years. I definitely thought when I entered into bankruptcy it would be one year, I'm sure that's what my research had told me, but no, my £250/month IPA is for 3 years, not 1 year :-(0 -
Hi an I.P.A does in this country at least lasts for 3 years, and that is the information we give on here.
B.R is for one one year after that you are automatically discharged maybe that is where you got mixed up.
Any surplus of £20 or over can be taken in an I.P.A thats 100% of the surplus you do not get to keep the £20.
This is why many people take this time to re train or stop working overtime as there is no point in working for nothing.
Very important we see the S.O.E so we can help to make sure everything is covered.0 -
What's an SOE?0
-
Or delay invoicing/ income streams.
Any change in income needs to be reported within 3 weeks....so money needs to arrive (because until it does, you have no change) at least 49 weeks from bankruptcy.
or work overseasNow we all know how it felt to play in the band on the Titanic...0 -
maxmycardagain wrote: »or work overseas
I assume that's just a tongue-in-cheek response, they'd have as much claim to that income, providing you told them about it?0 -
sortingmyshitout wrote: »What's an SOE?
Hi again sorry I meant S.O.A statement of affairs....not earnings been to dentist and a bit groggy!!0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards