Some BR questions ...

[monty77]

Have my creditors meeting today to setup an IVA but the more they try to ask for more and add conditions the more I think maybe I should have gone for BR instead.

I have no property and no major assets, my IVA contribution would be £500 per month so I guess that's my disposable income amount - total debt is a shocking £70k

Some questions:

1 - I have a leased car funded by a company car allowance, I get to keep this in an IVA but would I lose it with BR?

2 - Would the entire £500 per month be taken by creditors with BR?

3 - How long would repayments last?

4 - Is there a BR 'stamp' on my record forever? Or just for 6 years? I know BRs aren't allowed to work in some sectors but is this again for just the duration of the BR? Or 6 years? or forever?

5 - The zero tax code thing, is there a legit reason someone would have one? My HR dept are renowned for being loose lipped .. this worries me.

Thanks in advance, this place is so darn helpful!!

Adam

[monty77]

Just checked my employment contract ... says that they 'may' terminate my employment if I become bankrupt or enter a voluntary arrangement. Nuts.

...they're not FSA registered.

Is this normal? Likely enforcable?

A very worried Adam

[MelanieGiles]

I guess you take the chance then if you do not disclose the fact that you are entering into an IVA to your employer. The reality is that it is unlikely to be of concern - even if they do find out, and I would love to see a case of dismissal on the basis of entering into an IVA through a European Court of Human Rights.

[monty77]

I guess you take the chance then if you do not disclose the fact that you are entering into an IVA to your employer. The reality is that it is unlikely to be of concern - even if they do find out, and I would love to see a case of dismissal on the basis of entering into an IVA through a European Court of Human Rights.

I guess I'll just have to have a chat with my manager and see where it goes .. I'm hoping that clause is reserved for people in a position where they could potentially defraud but seeing as I'm a techie I can't see how that'd apply to me.

Any chance of some info on my prior questions seeing as BR is now looking like the obvious choice to take??

Thanks!
Adam

[Skippy]

I've already replied once and hit something and lost the post! Here's try number two!

I'm sorry to hear that your IVA failed Adam. I'll try and answer your questions in order:

1. I'm not sure about this one, but I would think that it would depend on your company. As the car is leased it's not an asset, and I'm presuming that you need the car to do your job?

2. The OR wouldn't take all of your disposable income. I have a table on my blog to give you a rough idea of the payments. Also bear in mind that allowances in BR are are more generous than in an IVA - I have posted my IVA and BR I & E on my blog. Everyone's allowances are different but it might give you an idea of what's allowed.

3. The payments into an IPA or IPO (Income Payment Agreement or Order) last for 36 months from the date of the first payment.

4. The BR will drop off your credit file after 6 years from the date of the order. However, if you are asked if you have ever been BR (when applying for a mortgage for example) you must declare it. Regarding jobs, I'm not sure about this - I know that some posts (company director for example) are only prohibited during the BR period or retriction order.

5. I suppose that if there has been a tax error then you might get a nil tax code. I didn't actually get one as I went BR just before the end of the last tax year and HMRC didn't have time to implement it.

I hope this helps, and good luck whatever you decide to do.

[iallen]

i have bankruptcy hearing tomorrow arranged to hear the petion from on of my creditors, i am in the process of setting up an IVA however the solictors that is reperensting the creditors has sent me an email saying that the agents have been instructed to secure the order tomorrow. any advice please

[MelanieGiles]

Ask for an adjournment to the proceedings in order that you can finalise your IVA. Surely your IP is involved in this process and is liaising with the creditor concerned? The judge will particularly want to know when the IVA is expected to be finalised.

[iallen]

my ip was appointed on friday

[MelanieGiles]

So the first thing they should have done wads fax the creditors, their solicitor and the Court requestinf an adjournment of the proceedings.

[monty77]

Thanks everyone for advice, I've downloaded the forms and am wading through them right now.

I have however hit a question that worries the life out of me.

It's asking for details of sale of any assets within the last 5 years. I sold a car last year that I owned (albeit with funds from an unsecured loan) as I was given a company car allowance which I used to lease a new vehicle. The proceeds of the sale were used to pay the deposit on the lease (3 months up front + 1st month's lease), to repay some cash debts to people who were getting particularly nasty (the type who dont give receipts) and what little was left I'm ashamed to say I spent drowning my sorrows for a week ... it was a VERY low point for me and I'm totally ashamed that it happened at all

Anyway, now I read stories of OR contacting people who received payments in recent months to ask for cash back to distribute amongst creditors ... this is simply not possible in my case and I'm horrified this might cause major problems with my BR application.

Anyone had any experience of this before, perhaps if they didn't want to talk about their experience on a public forum we could chat by email.

I guess I have 2 options ...

1) Omit it from the form entirely as the payment for the car doesn't show anywhere on statements - was sold for cash

2) Fess up and risk losing my last chance of sorting my life out

Bit devastated to say the least

Thanks!
Adam

[Skippy]

Hi Adam, providing that you didn't sell the car at less than it's true value you shouldn't have a problem. At worst you will get a BRU (bankruptcy restriction undertaking) which will mean that the restrictions of bankruptcy will last longer, although you will still be discharged.

You MUST declare the sale of the vehicle on the forms - the OR has access to the DVLA database and will know that the vehicle has been sold.

[iallen]

Obtained the adjourment for 3 weeks, thank you for the support