Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

ByZF1
#472100 Hi All,

I was made bankrupt in late 2014.

My OR has been saying I may be subject to a BRO/BRU, but I have had a letter saying that my case had been passed to LTADT and I should contact them with any questions.

I'm on a NT IPA until April - will this get recalculated in April so that I have to pay some of my actual pay?

I'm happy that my case has been passed on, is the threat of a BRO over now??
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ByTalbotWoods
#472101 Hi

All queries should be passed to your original OR, unless they have specifically instructed to work with a separate Insolvency Practitioner or unit. In this case the OR has instructed you to liase with the LTADT, and for most things they will deal with it. If they need specific guidance they can pass the case onto a different unit if needed..

The fact that you case has been handed to the LTADT means that they are aware of assets that may need to dealt with after normal discharge, such as property, or variations in IPA amounts, etc.

If your IPA is a NT one, and there is no additional payment at present, then your NT IPA will end in April 2015, however, for a period of 36 months after the IPA went into place they can re-examine your income to see if an IPA can go in to place later on. So yes they can recalculate in April and your may or may not have anything to pay going forward.

[DQ Hint: In April following a NT IPA, please check that HMRC has reset your tax code, sometimes they fail to do it and need chasing. If you do not they WILL come hunting it from you alone. Also make sure the people you pay the IPA to stops collecting it from you, yes sometimes the computers get it wrong]

With regards the BRO/U that is normally dealt with in the last couple of months before normal discharge, and it is totally unconnected with any bankruptcy procedures, such as IPAs. However, it is unusual for the OR to indicate one may be going to be issued in advance and then pass the case on to the LTADT (but not unheard off).

Di the OR indicate what the BRO may be for?

Tim
ByZF1
#472132 Hi, Thanks for your reply :)

The only assets I have are my car - which is exempt, and then the IPA while it is running. So the LTADT will re-examine the IPA, and not the OR? I thought if one wasn't in place prior to discharge then that was it. It seems a bit cheeky they can pop up say 12 months later and ask if you're earning more - which I almost certainly will be.

With this new 100% rule for additional income, rather than the old traditional sliding scale, I might as well decline any promotion at work then - my work won't give company cars or other BIK instead of cash, and there is absolutely no incentive to give myself the extra stress, hours and hassle if the IS are going to just take it all off me even after discharge!

The OR was saying that due to the amount of debt from Gambling, and the fact I had a CCJ from Gambling already (which was issued a few months before Bankruptcy), that it was likely I'd be asked to agree to a BRU or get given a BRO. That was only verbally though. I'm concerned with remaining on the IS website for too long, so I won't be agreeing to a BRU if they offer me one... the sooner discharge comes (8 months) the better!!

Also - I've had a lot of letters from creditors, and I've replied saying I'm bankrupt, contact the OR etc. One of my most significant creditors emailed back saying they didn't have a clue I was bankrupt, and asking if I'd listed them as a creditor - which I had. My credit report states I'm bankrupt, so the banks have figured that one out, but it seems the OR hasn't actually got hold of at least some of companies???
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ByTalbotWoods
#472133 Yes it does look the the LTADT will be managing your IPA, but if your income is not sufficient then the IPA will not continue.

With regards work promotion, would that be a wise thing to do, turn down a promotion now, that may never be offered again? I certainly would suggest taking the promotion, excepting that the additional pay may be lost for now, but in the future when the IPA is over, you have the pay increase, the promotion and possible further promotion and better pay. Is that worth risking for the sake of avoiding a IPA.

With regards the possibility of a BRU/O unfortunately these are quite common for debts due partly or wholly attributed to Gambling, so I do suspect you will get one.

BIG TIP if offered a BRU take it, most are for 5 years or less. This means it will fall off your credit files BEFORE your bankruptcy falls off. Remember nearly all organisation check the CRFs rather than the IS Website, and until the Bankruptcy drops off that is trashed anyway, better to get it all off the CRFs before the 6 years are up!

If you stick to your guns and force the issue, the OR will go to court to get a BRO and traditionally these are 40 - 60% LONGER that what was offered at BRU stage.

Therefore it is very possible with a BRO to have it still showing on your credit file AFTER you bankruptcy drops off, sometimes for several years. I have seen a BRU of 5 years turn into a BRO for 11 years!

If the creditors are still hassling you, go back to the OR and tell them that they are ALL telling you that they have not been contacted by the OR, but be aware that if it is one or two, they may be trying it on, some do!

Tim
ByZF1
#472134 Thanks :)

That's very true. I guess I can just hope my OR doesn't care about the increase (apparently some don't) but as it's going to be approx 15% (gross) of my current wage, I can imagine they will!

Yea, there were a lot of warnings when I was researching bankruptcy into a BRO because of it. Just got to hope they take their time to offer me a BRU.... if it's not done before my magical date in the autumn then I escape!

So that's still an option after the handoff to LTADT then :( Was hoping that ship had sailed nice and early... just another 8 months of worrying!

wow, 5 to 11 years is a massive jump! That's a good point about the credit file - the IS worries me because of employment though - at the moment my employers haven't picked it up, but the whole idea of the IS listing is that anyone can pick it up - if I'm in a management position the longer it stays on the IS site (and Google) the worse it could be.
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ByTalbotWoods
#472135 The BRO/U has to be in place before discharge, and normally they will they will offer a BRU at about the 10 months point. This was if you refuse it hey have time to get into court and get a BRO before discharge.

Thinking of any pay increase tied in with promotion, don't forget that the is gross, after tax it will be less anyway, plus cost of living increases (you obviously were below the IPA threshold for an income one in the first place). So with the difference in the minimums and cost of living that may actually take up most of the increase anyway, so again you may not have an income IPA. Seen that happen quite a few times.

Don't worry about a company goggling you on the IS database, that is closed off to search engines. All they can see is the part you enter someone name (just the empty boxes) so a name search will not reveal you! This is the same with a CRF, your details cannot be accessed by a search engine. However, your name and address details will have been entered into the London Gazette, and that is available to Google and the like, on slowly (after 7 years) it moves behind a sign in screen, where it is still legally available but cant be Googled).

So other than the London Gazette your bankruptcy cannot be found by search engine, but can be found if the person or organisation know which databases to search, and they can log in, to get that info in the first place.

The danger comes when another company picks up your details and chooses to put you details on their public facing databases. This used to happen a fair bit, but as these unethical organisations couldn't make money most (if not nearly all) have stopped it. Oh and they tended to all be overseas where you couldn't use the law to stop it!

But getting back on track, where employment is concerned normally the only financial check they do is via your Credit Files, and that cannot be done without you permission anyway. Even in the financial sector until you get to senior management they only check your CRFs, above that they go deeper, and then a bankruptcy 99 years ago would be found!

Tim
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