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

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ByButts
#472876 I will move back after I am discharged.

My wages have been depressed in order to avoid an IPA and get it over in a year. If I moved back as an undischarged bankrupt my guess is it would be nigh on impossible to rent anywhere. Coupled with the fact I would run the risk of
invoking one with a higher paid position and having to cough for up to three years.

I would rather live "like a monk" for a year in my Welsh Hovel and go back North discharged and free to earn what I like and begin a new life. I was lucky to be able to reduce my hours in my current position to earn enough to live on without risking an IPA. (hopefully !!) My original plan was to spend a year on the "old king cole", this way retains my self respect and keeps my brain active.

One last aside - you are not the same Sara that oversees a certain site related to a famous brand of American Cigarettes or a desert dwelling creature that can have one or two humps....Debt C........ :mrgreen:
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ByJaneClack
#472877 Well -good luck and let us know how you get on!

No, I am not a camel but know her very well and can highly recommend her fact sheets!

The other one - no! I don't even know who she is :lol:
ByButts
#472878 I wanted to tell you first.....

Mission accomplished :mrgreen:

Interview with a very nice lady lasted about 20 minutes.

No IPA unless my circumstances change.

Didn't question any of my expenditure or even mention it - I brought it up.

Report being written up this afternoon and will be out to creditors at the end of the week.

So the whole thing will be completed in less than a week from start to finish - I am happy now :P
ByButts
#472880 I would never desert you and - sorry have further need of your services :shock: - away from the crowd found on certain outlets.

First of all Life Insurance - I have a Term Policy with no surrender value that costs £45 per month.
The OR told me that I will have three options
1. Cancel the policy - ha ha that would reduce my outgoings by £45 month (IPA warning :twisted: )
2. "Buy it Back" off them for £50 one off payment - bit like the beneficial interest in a house massively scaled down.
3. I think was let them have a charge on it until I am discharged.

Obviously if I peg it they want to get their hands on the 100 Large to pay their fees and creditors if it is still live. Can you find out or provide a link that explains exactly what happens with this sort of policy and what the options are. They said they have already written to Aviva and I will get a letter explaining my options. I like to be prepared.

Secondly the NT Affair which you have previously alluded to. I need to know what the criteria is for paying this or is it arbitary. Although on my reduced earnings I am paying about £30 Month Tax she said they would not be applying for this in my current circumstances. However if my earnings rose by about £60pm they may consider it.

So what I am basically asking is it possible to have an NT only IPA even if your overall Income and Expenditure is showing a deficit which would not result in an ordinary IPA and more usefully as I mentioned before on what basis is the decision is taken.

Thirdly and similarly Council Tax was mentioned as a possible hit if my wages went up by about £60. From what I can garner it seems they would take the whole year including what I have already paid and am still due to pay.

Although both these measures would only be in place until the end of the Current Tax Year and would not cost me anything I want to avoid the hassle and involved dealings with the OR.

As my current Income and Expenditure (£160 deficit on paper) has not resulted in either measure being adopted I need to know the exact criteria and circumstances that have prevented them being applied and what would cause them to be started - ie what are the trigger points/situations from a financial point of view.
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ByJaneClack
#472881 First of all get someone to give you the money to buy back the insurance policy as if not it is part of your estate and if you were to die before discharge the money would go to pay off creditors and their fees and if any left over would go to the people named in your will. Cheap at £50 for protection.
Secondly, yes they can. If you are paying tax they assume they can take it - as to get £60 tax taken off you will have more money coming in. They do not accept extra tax to cover deficit budgets I am afraid so keep it at the £30!
Am not sure about the council tax - are you not paying anything as if you are in arrears the whole year goes in.
ByButts
#472882 Hi Jane I intend to take the action you advise with regard to the Insurance Policy.

Income Tax NT Code - What I am trying to establish is the rules with regard to this - ie what is the qualifying amount of Tax Paid for them to consider this worthwhile. I am currently paying about £30 per month.

On the Government Bankruptcy Website (6.2 Guidance to Bankruptcy) it says you will be given an NT Code and all Income Tax paid go to them rather than the Inland Revenue for the remainder of the current tax year. It does not quantify over £50 per month for example. The Adjudicator told me in my interview they would not be taking this course of action -why ? What is the cut off point. This information is vital for me to work out how much I can earn without it kicking in.

Council Tax - There is nothing about this in the Government Guidance to Bankruptcy.

I am completely up to date on my payments which are being made Monthly. The Adjudicator mentioned something about there were certain circumstances where Council Tax would be paid to them - ie if I was earning a bit more.

As with the Income Tax it would only be for the rest of the Financial Year.

What I am asking is the criteria used to determine whether a "Council Tax Snatch" is viable.
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ByJaneClack
#472883 The answer is I do not know. The OR makes their own decision there is no trigger as far as I am aware. It has to be worthwhile for them to collect it but some will. Similarly with council tax - this is something I have not heard of before.

I can ask an IP but am not sure they will know either - they would only know their policies. I shall also email this to an OR - anonymised - to see if he can shed any light. However, he may feel you are duckin' and divin' to avoid something which is still going to be less than you have had written off. :roll:
ByButts
#472884 I will attempt to find out as well - thanks for your help.

I'm not "duckin and diving" as such. It will not penalise or benefit me financially as the money collected will go to the OR rather than the Inland Revenue or the Council.

It's just I'd rather avoid the hassle and stay under the radar as it were. As it stands I've got no IPA of any description and I want it to stay that way :mrgreen:
ByButts
#472915 Well nearly four months down the line and everything is going fine !!!

No IPA (of any variety) in sight - let's keep it that way.

Not paying any Income Tax which is a handy thirty or forty quid in my pocket - keeping money aside just incase someone asks for it at a later date.

Council Tax for the year last installment paid this month - OR shown no interest in this either contrary to what some predicted.

Original 10 year old Basic Bank Account still intact ( this was my biggest worry) and running.

No hassle or contact from Creditors.

The only casualty sustained was Virgin Media closing my Account but I have replaced them with NOW TV.

I had to wait five years but it was worth it :mrgreen:
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ByJaneClack
#472916 Good news.

Just keep that tax to one side just in case until April. Then if they do not ask for it you have a little buffer for the rest of the years.

It's been a long time but hope to hear from you again when it is all over and you are ready to face the future.
ByButts
#473107 Well just to update everyone - I love it when a plan comes together !!!

Discharged this week one year to the day after the evil deed.

No NT IPA and I trousered the cash.

No IPA ever now I have been "struck off"

Miraculously my earnings have virtually doubled overnight.

Five years in the planning one year in the execution went like a dream.

Thanks for all your help !!!
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