Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By CrashDive
#1768 Bankruptcy-Overtime earnings undeclared. Discharge worries.

Hi,
Made a bankrupt July 2003 -
My expenditure just above income, so no payments.
Have done some overtime recently and over the previous months which I have not informed the trustees about.

Is this going to affect me being discharged in April 2005?
If so will I have to pay some kind of fine?
Or extra time as a bankrupt?
Jail etc?

Any advice or comments gratefully received,
thanks and regards.
CrashDive
:?:
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By JaneClack
#1770 Why did you do overtime when there is only 6 months to go before discharge and the possibility of an income payments order disappears? Basically that is what you are running the risk of having and if one is put in place it will last for three years - stop it now! You have a duty of care to let the OR know of any changes in your circumstances - usually within 21 days. You should explain to him that it was an oversight as you did not think you would have a lot of overtime and therefore did not think to let him know. The sum total of what you have earned is what you are going to have to tell him about as you run the risk of him finding it out elsewhere which might provoke further investigations. It is unlikely you will get a bankruptcy restriction order (which extends the effects of bankruptcy after discharge) and you will certainly not be going to prison but you might end up paying something! Let him know and soon.
By CrashDive
#1771 Sarah, I take your points and understand I have been rather silly in doing the O/T.
Will the Trustee likely expect to have all the O/T back or just a portion or is this the $64,000 question?

I am tempted to leave it now and not say anything at all, do no more O/T and hope it is passed over.

I'm not sure how a IPO works, if I am doing occasional O/T, and have it stopped at anytime, how can they expect me to pay if my expenditure is still above my income without the O/T?

There are probably really simple answers here but I've got a lot of other things on the mind presently and struggle with the overview,

thanks for your post and for answering so swiftly,

regards
CrashDive
ByDavidc
#1772
CrashDive wrote:Sarah, I take your points and understand I have been rather silly in doing the O/T.
Will the Trustee likely expect to have all the O/T back or just a portion or is this the $64,000 question?

I am tempted to leave it now and not say anything at all, do no more O/T and hope it is passed over.

I'm not sure how a IPO works, if I am doing occasional O/T, and have it stopped at anytime, how can they expect me to pay if my expenditure is still above my income without the O/T?

There are probably really simple answers here but I've got a lot of other things on the mind presently and struggle with the overview,

thanks for your post and for answering so swiftly,

regards
CrashDive

Unless your essential expenditure exceeds your income as you say there is no chance of an IPA being made so I do not understand your reluctance to advice the OR of it , which as you will have been made aware is contempt of court.....The OR will have been made aware of your extra income via the inland revenue. I assume you have an NT tax code, so he will be looking for the tax not payed to be passed to him eventually. When this occurs the extra income may be picked up.
David
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By JaneClack
#1781 I am afraid I just automatically assumed that your overtime put you in a position where your income exceeded your expenditure - if it doesn't and it was just to make ends meet there will be no problem and as David says any excess income will be picked up by the OR via the Inland Revenue. If it is a lot he will want some of it - if it isn't, he won't. Just don't do any more - you could risk and early discharge otherwise.
By CrashDive
#1904 Sarah and David many thanks.

I was a NT Tax Code until April this year since my bankruptcy, now I pay tax as before the bankruptcy to the Inland Revenue out of my pay before I receive it.

I have actually stopped my O/T now until my discharge, I'm too worried about highlighting my past transgressions to the OR so will leave it and cross my fingers.

Sarah you were correct previously, with the O/T I did I was over the expenditure at times but as I said have stopped now,

many tks again
CD
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By JaneClack
#1910 Good. Hope things go well!