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

Moderators: TalbotWoods, JaneClack

By Brett
#2465 Hi,

I wonder if anyone can help me with a few points. Just before New Year I intend to go bankrupt to clear £70k of unsecured debt.

I work from a small office and am presently just squeezing out a living. How does the OR treat you if you are self-employed? My office rent is paid up with no arrears as is the rent on my flat, utilities and mobile are all paid up too.

I am most concerned about IPA/IPO assessment. My income varies from month to month and I never know what it will be the next month. Will the OR take an average of a few months income or just instruct me to notify them if my income goes above x amount? I can always limit the amount of work I do to prevent reaching an IPA-invoking amount

Also, I'd be grateful if someone could give me an indication of what the OR considers reasonable amounts for living expenses - housekeeping, phone , etc. I am single with no dependents.

Much obliged.
-B-
ByDavidc
#2469
Brett wrote:Hi,

I wonder if anyone can help me with a few points. Just before New Year I intend to go bankrupt to clear £70k of unsecured debt.

I work from a small office and am presently just squeezing out a living. How does the OR treat you if you are self-employed? My office rent is paid up with no arrears as is the rent on my flat, utilities and mobile are all paid up too.

I am most concerned about IPA/IPO assessment. My income varies from month to month and I never know what it will be the next month. Will the OR take an average of a few months income or just instruct me to notify them if my income goes above x amount? I can always limit the amount of work I do to prevent reaching an IPA-invoking amount

Also, I'd be grateful if someone could give me an indication of what the OR considers reasonable amounts for living expenses - housekeeping, phone , etc. I am single with no dependents.

Much obliged.
-B-

They are what they are and unless they are considered to be excessive will not usually be questioned. Do not forget that the OR will have your bank accounts in front of him ......not to hard for him to see what your phone bill is.
David
By Pineapple
#2527
Brett wrote:Hi,

I wonder if anyone can help me with a few points. Just before New Year I intend to go bankrupt to clear £70k of unsecured debt.

I work from a small office and am presently just squeezing out a living. How does the OR treat you if you are self-employed? My office rent is paid up with no arrears as is the rent on my flat, utilities and mobile are all paid up too.

I am most concerned about IPA/IPO assessment. My income varies from month to month and I never know what it will be the next month. Will the OR take an average of a few months income or just instruct me to notify them if my income goes above x amount? I can always limit the amount of work I do to prevent reaching an IPA-invoking amount

Also, I'd be grateful if someone could give me an indication of what the OR considers reasonable amounts for living expenses - housekeeping, phone , etc. I am single with no dependents.

Much obliged.
-B-


I'm self-employed, though I work from home. It's a bit more complicated than for those in PAYE jobs, but not too bad.

You'll have a face-to-face interview, rather than a telephone one. PAYE bankrupts don't pay tax for the first year - it goes towards an IPA instead. However, we are expected to put aside an amount for the tax we will eventually pay. My OR looked at previous earnings and did an average . However, he asked me to send in a monthly statement of income and outgoings, as they vary considerably. My earnings have decreased lately as I've been ill, so I'm about to write asking for a reduction in my IPA.

The OR was far more reasonable about expenses than the creditors. The CAB told me that they just 'wouldn't accept' my high phone bills, for example, whereas the OR understands that most of the costs are for work.