OR wants 100% of bonus! Is this normal?

[Bethan]

My husband and I declared ourselves bankrupt in September 2008.

We have just informed the OR of a bonus paid to my husband in December, of which they are asking for ALL of it. Is this normal???

We were of the impression that any overtime or bonuses are shared between the OR and the person receiving them.

Can anyone shed some light on this before we have to hand all the money over?

thanks,

[MelanieGiles]

Yes - this is deemed to be an after-acquired asset, and there is no provision to share this with you and the creditors.

One disadvantage of bankruptcy, which is worthy of highlight to anyone considering their options at present.

[Bethan]

Hi Melanie

Thanks for your prompt response.

Will this be the case for the full 3 years whilst in the IPO? Or just the first 9 months?

Would there be any exceptions, for example, new radiator required as old one broke?

B

[jane.l]

My hubby got a bonus whilst bankrupt and the OR never mentioned it, we got to keep it[8)]

[Bethan]

Hi Jane

Did your hubby inform the OR of the bonus?

How long ago was this?

thanks, B

[MelanieGiles]

It is the case until you are discharged from bankruptcy, however if your OR believes that the bonus is income rather than an asset it could continue to be captured under the IPO. A grey area, and I would be included to go with the former rather than the latter answer.

[jane.l]

We were bankrupt end of 2008. The OR knew of the bonus and we expected he would ask for it but he never did, maybe he overlooked it or just maybe he thought it not worth bothering collecting, it was just less than one month's wages