IPA Payments in BR

[BrassicLintus]

Hi, if I get a pay rise, say £60 per month, I know I have to inform the OR but would my payments increase? Plus if I work overtime, would I have to pay 50% as in an IVA? Thanks.

[MelanieGiles]

Probably unlikely - but inform them anyway and you are complying with your duties until you receive your discharge. There is no requirement to pay over 50% of overtime monies.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

I had a pay rise in April and I informed Clarke Willmott (who collect the money on behalf of the OR). They told me to send a copy of my payslip to them and they would see about having my IPA reassessed. I sent the payslip at the end of the April and I haven't heard anything from them.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[fudge34]

I am slightly confused as to when you are expected to start paying the BR payments. Is it a year after you have been made BR when you are 'discharged' from it as it were or straight away

[catullus]

As soon after the bankruptcy order as is practicable. This involves the OR gathering information regarding your personal and financial affairs, arriving at a proposed amount to form the basis of the DMA, drafting the DMA and giving you a 14 day cooling off period and then putting in to place payment arrangements.

Your financial affairs are then reviewed once more before your automatic discharge and any change to the payment is put in place.

[MelanieGiles]

Hi fudge

The IPO payments usually start a couple of months after the bankruptcy order, and last for three years from the time that they commence regardless of the time of your discharge.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

I was made BR in March and made my first IPA payment on 30th June.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[fudge34]

great thanks - I think I have almost made a decision and will go BR. Need to have a good read of the stuff that i have printed off the insolvency website and speak to someone about my house and signing it over to husband but I know this is the only solution left to me. You guys are great thanks so much for your help. Just need to get my head sorted into what i need to do next now!

[iva experts]

Hi Fudge34,

I would be very careful when signing your house over to your husband, as this may be seen in the same light as selling off an asset. It may be ok if you dont sign it over at a undervalued price.

What amount of equity do you have in your property?

Best Regards. IVA Experts

[fudge34]

Hi
Well I have about 2 grand in it at the moment. We brought the house last year (a year ago today to be exact) for 153.000. We had a 5 grand deposit and we currently owe around 151.000 (our mortgage at the moment is interest only fixed for 4 years.) My IP reckoned that with current house prices the value of the house would be aroun 161.00 now. Which means that split down the middle (its a joint mortgage) its 4.5 grand for me and the same for my husband. He said once i have taken off the fees and costs I would end up with around 2.000. What i wanted to do was to let my husband buy out my side of the interest. So effectively he would give me the two grand and buy me out. I would then transfer the house over to his name and then rebuy it back as it were 6 years later down the line so it would turn into a joint mtg again. My husband is OK with this. The reason I am slightly panicked is that everything that I am reading on the insolvency website etc said that in most cases in BR you do end up losing your home. I am not sure what to do if that would be the case. I would love to just sign the house over to my husband now but know that is illegal.

[iva experts]

Try not to panic fudge you are doing a great thing by dealing with your debts, I know its easier said than done!

When you decide to go bankrupt, i think the best thing for you to do is apply for this in the normal way but then when you speak with the OR express your plans concerning the house.

I believe that your husband would get up to 12 months to come up with the money to buy your part. Make sure that you do not do anything until you have actually gone bankrupt and have received the OR's advice as to whether they will receive your offer or not.

Best Regards. IVA Experts

[fudge34]

But wouldn't the OR just take the house anyway? if I go BR then I have no say in what happens to any of my assetts do I? they are then in charge then aren't they and can call the shots and make me do whatever they want me to do - it seems a bit of a leap in the dark for me, I would if that would be the case rather enter into a DMP even if it took me 15 years to pay off - I cannot lose the house as its half my husbands and my baby is only 18 months old I would rather die than let that happen

[Skippy]

Hi Fudge, the OR is only interested in YOUR assets, not your husbands. Therefore s/he is only interested in your share of the equity and I have heard lots of stories of people being able to keep their homes in BR as a partner, family member or friend has bought their beneficial interest.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[fudge34]

OK thanks Skippy - but I think I am going to have to rethink the BR option but thanks anyway I really do appreciate all your help you have become a virtual friend and a very good one! but I know that I am going to put forward a DMP to NR and the others and then just pay it off over the years as BR is far too dodgy for me to contemplate - the advice on teh insolvency website is very negative (although honest) and it does say that people always usually end up losign their house so will need to rethink - we all need to write a book don't we perhaps name it never get into debt or take a loan out from NT : )

[catullus]

Fudge

I think that you have got this wrong and if you can refer me to specifically what you are looking at on the insolvency web site I might be able to interpret.

Rest assured the OR will onle sieze your home if he has ABSOLUTELY no alternative.

The reasons for this are

a) He would need to get an order for sale, (expensive and no guarantee of immediate success.

b) He would have the costs of holding it (insurance etc) and the costs of marketing.

c) If he sought an order for sale almost certainly the building society would take possession first adding a layer of costs that would wipe out the minimal equity that there is.Furthermore a sale by an OR/building society would seriously affect the value that they would get. Would you pay the full asking price?

d) They will be able to do a deal with your husband far more quickly than seeking an order for sale.

Surely your husband will be able to find £5k even if he has to remorgage. He'll have a good 12 months to raise the money.

I don't know how long it will take you to pay off your debts in a DMP but 5 years plus is not untypical,
Furthermore, statistically something like 80%+ of people never complete their DMP's and end back where they originally were.

I'm not saying that DMP may not be right for you but you seem to be straying away from bankruptcy for the wrong reasons.

Try to give me the link to the specific page on the insolvency service website but, in the meantime, rest assured that what I have said above is correct.