So confused about bankruptcy payments Please help

[r.s]

I was made bankrupt in May 2007 last year.

My salary then was £13,000 PA (£860) after tax and NI and is still exactly the same now.

In my phone interview with the Official receiver I was told I would have to make payments to them, half of the surplus approx £100.

I later contacted the official receiver regarding a query and I was told I would not have to pay anything and shortly after this I was told I probably would.

A few months later I was contacted by the Solicitors, and after sending them my wage slips a NT code was applied, and I was told the additional money I would receive was due to the trustee and I had to send them that additional payment. I was told that I would have to make 9 monthly instalment of £121.

I have been making the monthly instalment payments to them since and have not heard anything from them or the official receiver.

I am just very confused regarding a number of things;-

I’m wondering when it is likely I will be discharged, and if that is it regarding payments or am I going to have to make further payments for another two years even though I will be paying my normal tax again?

Also I am considering my options regarding my job and would like to aim for something a bit higher in the future as I am not very happy with the current job I am in. I am wondering if I was to leave my job now and get a new one what effect it would have I.E. if I do currently not have to pay anymore after May, if I was to start getting a slightly higher wage would I have to pay for another 2 years etc and what would the fact be on the tax.

I am just very confused and would like this to be over so I can make a fresh start as soon as possible.

I would be extremely grateful if anyone could answer my questions, or give me any advice or similar personal experiences,


Thank you in advance

[MelanieGiles]

You need to keep the Official Receiver notified of all changes in your income and expenditure, and if they feel that your payments should be amended they will implement this. In my experience, however, this rarely occurs.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Skippy]

Hi r.s., I am presuming that you are only paying a tax IPA. Your tax code will return to normal in the next tax year, and if the OR hasn't put a IPA in place by the time you are discharged in May you won't get one.

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/

[r.s]

Hello – thank you for the replies.

I have since received an early discharge notice.

I was wondering how this changes things in terms of what I asked before.

I still have to pay the solicitor the remaining 4 monthly instalments of £121 as I am on a NT coding, until the end of the tax year and am assuming that as soon as it ends I will be put back on to a normal tax code?

And not have to make any further payments and that is it now regardless?

I am still desperately unhappy in my job and really want to change. I am looking at jobs which pay quite a bit more than what I am currently on (£13000); around the £18,000 – £20000 mark but am wondering what the affect will be on all this especially now I have received an early discharge?

Do I still need to notify the OR of any changes in my income and up until when do I?

I also wanted to also ask about credit repairing – can I begin to do this now I have been discharged. Also would anyone recommend I obtain a certificate of my discharge from the court so I can send this as a copy to all the creditors etc to amend my records and so all the debt has been settled? Or is this pointless?

I really want a fresh financial start and to start saving as much as I possibly can each month for my future. Is it acceptable for me to apply for a savings account now? What about endowment policies, and ns and I (premium bonds etc)?

I would be grateful for any answers for the above.

Thanks in advance,

Rich

[Adam Davies]

Hi
If you do not have an IPA in place then as you are now discharged your final payment will be in March.
Therefore you can change jobs without having to worry about making payments.
Credit repairs are a waste of time and money,your bankruptcy will stay on your credit file for a total of six years from May 2007.
You will be able to obtain a mortgage but unsecured borrowing will be near impossile until 2013 so you will just have to get used to no credit.There are many pre-paid cards now and these are as good as credit cards etc.
Good luck

[r.s]

Hello - thanks for the reply but I am still really confused. I do have an IPA in place (£121 a month which is my tax - am currently on a NT coding), and in the letter from the solicitors months ago i was told i would only need to pay up until April.

When does contact with the Official Reciever cease? Do i get informed?

So I do not have to inform the OR of any increases in salary now if that were to happen?

What about savings? Is it acceptable for me to apply for a savings account now? What about endowment policies, and ns and I (premium bonds etc)?

What about if i were to recieve a windfall etc?

As for the credit repairing - so there is not much point in paying for a certifcate to send to all the creditors agencies etc so records can be amended?

Sorry for all the qustions, and if i sound stupid I just don't unDerstand some aspects and would be greatful for the clarfication.

Thanks in advance,

kind regards

Hi
If you do not have an IPA in place then as you are now discharged your final payment will be in March.
Therefore you can change jobs without having to worry about making payments.
Credit repairs are a waste of time and money,your bankruptcy will stay on your credit file for a total of six years from May 2007.
You will be able to obtain a mortgage but unsecured borrowing will be near impossile until 2013 so you will just have to get used to no credit.There are many pre-paid cards now and these are as good as credit cards etc.
Good luck

[Skippy]

The way I understand this is that at the moment you have an NTIPA (Nil Tax Income Payment Agreement) and you have to pay your tax to the OR until the end of this tax year.

If your circumstances change before your discharge in May (i.e. you start earning more money) you will need to inform the OR and they may implement a 'normal' IPA for a percentage of your surplus.

If your circumstances don't change before discharge and you have no 'normal' IPA, you are home and dry. You won't need to notify the OR of any changes after discharge.

[Adam Davies]

Hi
RS 'I have since received an early discharge notice'

Therefore any change in income does not have to be notified to the OR as they only have a NTIPA,final payment due in March.
You can open a savings account and any windfalls are yours to keep,as you are discharged
Credit repairs,in my view are a waste of time and money

[Skippy]

Andy, what do you mean by credit repairs being a waste of time and money. I was under the impression that I will have to write to my creditors to ask them to mark my CRF's as satisfied, as is they don't, even after the BR has dropped off it will still look bad.

I'm going to have to write to Tesco anyway, as they defaulted me after my BR date, so I need them to put that right, otherwise the default will still be there after the BR has dropped off!