Bankruptcy term / payment orders

[Kitty1]

Quick bankruptcy question

Suppose a person has zero disposable income after RLEs are applied - this qualifies them for bankruptcy as there is no money available for a PIA.

So when declared bankrupt ,I assume there is no payment order - after 12 months has passed I assume you are reviewed at the end of that 12 month period. If your circumstances have not changed during that time , are you discharged from bankruptcy and no payment order imposed as there is current no disposable there ?

So for example if your circumstances changed 18months from the date you were declared bankrupt , there still wouldn't be a payment order as you've already been discharged ?

Second question - how long does it take for a bankruptcy to start ? If one goes about filing say next week - how long approx before your 12 months can actually start running ?

 

[Stuboy]

Quick bankruptcy question

Suppose a person has zero disposable income after RLEs are applied - this qualifies them for bankruptcy as there is no money available for a PIA.

So when declared bankrupt ,I assume there is no payment order - after 12 months has passed I assume you are reviewed at the end of that 12 month period. If your circumstances have not changed during that time , are you discharged from bankruptcy and no payment order imposed as there is current no disposable there ?

So for example if your circumstances changed 18months from the date you were declared bankrupt , there still wouldn't be a payment order as you've already been discharged ?

Second question - how long does it take for a bankruptcy to start ? If one goes about filing say next week - how long approx before your 12 months can actually start running ?

You are assessed immediately following your declaration as a bankrupt - if there is no income available over the RLE you will not have to pay anything to the OA. during the 12 months you must contact the OA immeidately if your circumstances change in any way that may push you over the RLE.

Once you are discharged from bankruptcy without a payment order you are no longer under review of the OA. if you get a raise a month later, good for you. the OA will not have any claim on you as you are no longer a bankrupt.

When I submitted my papers early last year I was declared bankrupt within 3 weeks. However, I am not sure what the waiting times are like now.
Good Luck.

 

[Stephen Curtis]

Quick bankruptcy question

Suppose a person has zero disposable income after RLEs are applied - this qualifies them for bankruptcy as there is no money available for a PIA.

So when declared bankrupt ,I assume there is no payment order - after 12 months has passed I assume you are reviewed at the end of that 12 month period. If your circumstances have not changed during that time , are you discharged from bankruptcy and no payment order imposed as there is current no disposable there ?

So for example if your circumstances changed 18months from the date you were declared bankrupt , there still wouldn't be a payment order as you've already been discharged ?

Second question - how long does it take for a bankruptcy to start ? If one goes about filing say next week - how long approx before your 12 months can actually start running ?

Hi Kitty,

If you have no availability above the RLE's no income payment order will be obtained against you and you will, assuming no further change in your circumstances, be discharged in 12 months. If you get a pay rise a month afterwards good for you - the OA will not be involved.

 

[Outsider]

Hi Kitty,

If you have no availability above the RLE's no income payment order will be obtained against you and you will, assuming no further change in your circumstances, be discharged in 12 months. If you get a pay rise a month afterwards good for you - the OA will not be involved.

Stephen,
Is this 100% fact?
Are the rules governing IPO's available from ISI do you know?
Thanks