Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By Rooster
#402783 Hello,

I'd really like some advice and your forum seem so helpful. I have so many questions I do apologise! Firstly, I should explain.

My partner has been made bankrupt in the past couple of weeks.

We live together in a rented house and we are not married. We are both young. I am in my late twenties and he in his early thirties. I have been very supportive of him and I am pleased he has been declared bankrupt.

His debt was unmanageable to the point that he was ill and this feels like the best option. We all have our own deamons and his just happened to be money. What we were quite foolishly unaware of was what the IPA entailed. After his telephone interview he was told he should pay £150 a month and any bonuses and payrises he receives there after for the next three years even after discharge.

I am currently training to be a dentist and therefore a student. to be able to afford to live I currently and very stressfully hold down a job as well as study which means I have an income of approximately £300 a month. The OR took this into consideration and decided my partner could afford £150 a month. Yet he pays for pretty much everything! My £300 is for me, to buy books and go home to see my parents.

If I gave up work would it be likely that the IPA would be stopped or reduced? What I also don't understand is the IPA pre and post discharge.

From reading through the posts I understand everything has to be declared all the time. I get it and I'm in agreement with it- honesty is always the best policy. But with regards to bonuses I am so confused by this.

Predischarge is the case that all my partner's bonus has to be handed over? Can there be any negotiation? For example we had thought we use it to pay the MOT and any repairs for the car (the car is mine, I bought it with my own money). Can we negotiate if the whole amount has to be handed over? And then post discharge, I read so many contradictory things about what we have to do about bonuses then.

Some class them as a 'windfall' and therefore we can keep it, or can they be negotiated again? I know he has to pay something, otherwise it wouldn't be fair. But where is his incentive to work hard to get the bonus if all of it just has to be handed over?

I just don't get the system! thanks in advance for all your help!
By chandjay
#402933 The IPA usually last for 3 years. Bankruptcy usually lasts for 1 year.

When my friend went bankrupt, he was given an IPA for £480 a month. A few months later his wife's income was reduced so he found himself having to contribute more towards the hpusehold expenditure. He contacted his OR who reassessed his situation and finances and reduced his payments to £360 a month.
So yes, an IPA can be reassessed.
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By JaneClack
#403043 Any windfall has to be declared within 21 days but he can certainly explain what expenses are needed - what we can say is if it is not declared then when it is found out (as it will be) the whole lot will be taken.

I know it seems hard but just think about the amount of money that has been written off to put things into perspective.
By Rooster
#403073 Thanks Sarah. I know, he's had a huge amount of debt written off and has managed to renegotiate the IPA down a little more. I'm hoping the bonuses will be negotiable too as what incentive is there for the person made bankrupt to get one??!! Thus the OR would receive no money at all!! I really don't think he should be given an 'easy ride' and I definitely agree he should be made to pay money each month but the OR could do with rethinking the bonus side of things! Is there anyone with experience of an IPA pre and post discharge and do things feel 'different' once the discharge has happened??
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By JaneClack
#403113 Your income should not have been considered in the bankruptcy as basically £300 would only cover your food and transport and books etc - so how can you make a contribution to the household? Do you have a student loan as well as really that should not have been regarded as an income to the household....

Has he doubled housekeeping and everything else?

If he is paying £150 a month then drop your job to half and only earn £150 - as you would end up the same...

There is something odd here and I would query it with the trustee!