Think I need to go BR!

[Riz]

Re: Think I need to go BR!

They are not maximum figures that you are allowed.

Just a guide for the OR to averages from the Office of National Statistics.

i.e. so the OR can think "That is above national average. I should probably ask for proof on that one".

If you legitimately use a lot more and can justify/prove it, then it's not normally ap problem.

[fiscalfool]

Re: Think I need to go BR!

Aaaahhh ... dawn shines on marble skull. It makes sense now. They are averages just to use as a guidline.

Phew that's ok then, so long as it's not rigid. I'm happy to prove to any OR what my current spending is, I log it meticulously these days!

Makes more sense now

[Riz]

Re: Think I need to go BR!

That's the problem with posting those guidelines, and why we are normally a bit cagey about doing so.

They are not a maximum or minimum allowed in most cases. Interpreting them as such can get you in bother in a variety of ways.

Nor are they "allowances". i.e. what the OR will automatically allow. You spend what you actually spend, and should declare that. The OR can and does ask for proof if they think figures are high.

[fiscalfool]

Re: Think I need to go BR!

Very true, thank you.

Another question, which I think I have asked, but posed slightly better:

1) "If my SoA shows too much disposable income, will I be denied BR?".

2) "If I'm granted BR, and an IPO/IPA order is required, then is it 100% of disposable income that is swept aside, or a proportion of it?"

[Riz]

Re: Think I need to go BR!

1) No. If you are technically insolvent (cannot pay all your debts as they fall due) then you won't be refused on those grounds.

The judge does have discretion to refer you to another insolvency procedure instead (IVA/DRO etc) if they think that is in your better interests. Of the hundreds of BRs I've seen, I can't recall that happening though. If you have advice from NDL, CAB or somewhere else like that that BR is best, then 99.999% of the time it will go through.

2) Nowadays it is 100% of surplus. Hence the importance of a realistic SOA that doesn't leave you short in any area.

[fiscalfool]

Re: Think I need to go BR!

1) Excellent thanks.

2) This is my concern. I realise that for 3 years I won't be cash rich, but I will have a huge weight off my shoulders. But if it's so restrictive that I'm unable to take the kids out of a weekend, albeit to a national trust place for free, with home-made butties for lunch ... then 3 years is a heck of a long time!

[fiscalfool]

Re: Think I need to go BR!

Sorry, you're going to be fed up of me! ... I've got another question, which I haven't got my head around is the timescales.

1. Issue BR paperwork
2. Hearing arranged
3. At hearing BR is issued (Recorded for 6 years on credit file from this date). IPO Payments start
4. Normally after 12 months, discharged from Bankruptcy
5. After 3 years normally IPO payments end

So if I understand it right.

• 0-12 months ... "Bankrupt"
• 1 year - 6 years ... "Discharged Bankrupt"
• 6 years onwards .... "no need to mention anything"

Q1. Do the above look correct?

Q2. Once you are discharged, does that mean that you can start to rebuild your credit file. Not that I ever want credit again!

Q3. Is there a term for "finished paying IPO/IPA, and all requirements are settled"?

[philnicandamy]

Re: Think I need to go BR!

Sorry, you're going to be fed up of me! ... I've got another question, which I haven't got my head around is the timescales.

1. Issue BR paperwork
2. Hearing arranged
3. At hearing BR is issued (Recorded for 6 years on credit file from this date). IPO Payments start
4. Normally after 12 months, discharged from Bankruptcy
5. After 3 years normally IPO payments end

So if I understand it right.

• 0-12 months ... "Bankrupt"
• 1 year - 6 years ... "Discharged Bankrupt"
• 6 years onwards .... "no need to mention anything" Unless your asked the question "have you ever been BR?" you'll still have to answer Yes

Q1. Do the above look correct?

Q2. Once you are discharged, does that mean that you can start to rebuild your credit file. Not that I ever want credit again! Yep Indeed

Q3. Is there a term for "finished paying IPO/IPA, and all requirements are settled"?

Nope no term...

[Riz]

Re: Think I need to go BR!

To add to that, an IPA doesn't start on the date you go BR.

It is an agreement between you and the OR that can be set up at any time while you are discharged, and then runs for 3 years from the date it is agreed.

[fiscalfool]

Re: Think I need to go BR!

Cheers Phil.

That's actually not too bad then.

I was of the understanding that you couldn't get credit within the 6 years, but actually you can start to rebuild it after the 1st year.

[fiscalfool]

Re: Think I need to go BR!

To add to that, an IPA doesn't start on the date you go BR.

It is an agreement between you and the OR that can be set up at any time while you are discharged, and then runs for 3 years from the date it is agreed.

Oh right, I guess they would hope for it to start soon-ish though, say within a month or two.

Blimey, so you could actually delay it by a year and get some cash saved and then pay a lump sum towards it. Or delay by a couple of months to establish a buffer.

[philnicandamy]

Re: Think I need to go BR!

Any rebuilding is damage limitation really until the bankruptcy drops off your files in 6yrs..credit after discharge is possible although a little difficult

its took me nearly 4yrs discharged to obtain a CC

and thanks to a cock up with natwest...they gave me a full bank account after year 2 of discharge

[fiscalfool]

Re: Think I need to go BR!

I understand. It wouldn't really achieve much, but just help the recovery process.

The way I feel at the moment, if I ever get a credit card again, it will be for emergencies only. (oh and booking things that I may need to do a s75 reclaim on!). But my priority will be clearing the balance the following month, and for emergency items, clearing as quick as possible. I've learnt my lesson there!

I think of all the banks at present, I'd like to eventually end up with Nat West ... but right now, happy with my Co-Op Stash-minder! Admittedly it doesn't have the nice iOS apps, or the ability to download statements etc. But for a free account, it's great.

Long gone of my days of being flash with a top tier account, thinking I was getting superior service. The banks are happy to sell to anyone, but the moment you have problems they suddenly go deaf!

[Riz]

Re: Think I need to go BR!

Blimey, so you could actually delay it by a year and get some cash saved and then pay a lump sum towards it. Or delay by a couple of months to establish a buffer.

Afraid not. The timing is decided by the OR.

Basically, as soon as they think you have enough surplus they will ask you to sign an IPA.

For most people that would near the start of the BR. Some people with no surplus at the beginning may get one applied later on though, should their circumstances change before the 12 months BR are up.

[Riz]

Re: Think I need to go BR!

Have a careful read through the info and links here:

Income payments orders and income payments agreements | Personal | BIS

Should help I think...