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Does Ivan then have to spend 3 years in the UK? And does he not get fully discharged until then?
I have always pointed out in my posts and articles and radio, that an income payments agreement or order can be put in place any time within the first 12 months ie when you are bankrupt. It lasts for a maximum of 36 months from the time of the agreement.
I always advise that income during the 12 months of the bankruptcy is always kept to just what you need to live on and no more. If you earn more than you reasonably need it can be taken for your creditors.
Once you are discharged, ie after 12 months you can earn what you like and it can never be taken.
Even before Ivan went bankrupt I was commenting that he would have an IPA because of his pension. It is no surprise to me and it wouldn't be to him. The consultation for him is it is only three years and he is now debt free
Steve
[broken link removed]
I was told to purposely not find employment when I get to the UK and secondly not to seek employment for the forseeable future ie 3 years.
Well if you were told it by one of the UK bankruptcy experts it must mean that your bankruptcy will go better if you have no income. Maybe a low paid job that only pays enough to live on, but is better than UK dole would be ok.
I wonder is there a UK website that shows what orders are made in the bankruptcy courts. Which would give us a better idea of how it works. It would be very interesting if an Irish person who went bankrupt in the UK explained the procedure on here.
Bronte you will not get people on here talking about the UK because it is private.
Steve,
For a family of 2+2 can you give a ball park figure for the income level after which the OR is likely to place a payments agreement?
People discuss all kinds of private things on here as they are looking for financial advice. It would be very interesting to hear from one of your Irish clients, to ask them how they want about bankruptcy and how they feel about it.
We had a couple at our last seminar who did just that. They also appear in the papers from time to time.
I have a question for you. Taking the Ivan Yates case, where he has a guaranteed income of 75K for life, yet he will not have to pay any of that after the 3 years. Is this because the rules in the UK say that because he is insolvent, which he quite clearly is, that due to this insolvency he is allowed to get on with his life, despite the income. The logic being that it's better that people become productive members of society.
Yes precisely that. It resulted from the Enterprise Act which was enacted by Peter Mandellson of the last labour govt as a result of seeing the USA model of bankruptcy and the need for people to be able to move on and contribute economically again.
But take another case, one where the only debt is a mortgage, which is in default but the debtor can afford to pay it, but decides not to. To avoid paying it he takes leave of absence and goes to the UK to go bankrupty. In that case the person is not insolvent, but to avoid paying the bank have taken leave of absence from their civil servant job. Is that allowed, or would the UK receiver not allow the bankruptcy if they knew about the permanent job.
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