Public Servant/Bankruptcy and Pension?

Mary M

Registered User
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3
Hi folks,

New to post here but a regular reader of the forum.

I'm a 47 year old public servant 2 years into a Debt Settlement arrangement. My circumstances have changed dramatically and following a review, I am unable to continue with the DSA as I just cannot afford it. I'm with Grant Thornton and their advise is to declare myself bankrupt. I'm worried sick, I'm a single parent of a 7 year old and receive no maintenance and am now renting a house. It's a struggle to survive at the moment and I really do not know the implications of declaring myself bankrupt.

Obviously, I still have a good way to go before retiring age and I'm 22 years in the Civil Service. I'm worried that if I go down this route, that my pension would be affected or taken away from me?

Any advise would be much appreciated.

Thanks

Mary.
 
Mary

DSA's have a built in clause that allow for "changes in circumstances". What has changed so dramatically for you that you cannot avail of that particular clause?

One option that might be open is to convene a creditors meeting to "vary" the DSA to allow for your new circumstances.

Another option is to try and do an informal deal with your creditors.

A challenge that you face with bankruptcy is that the Official assignee may judge that the existing rental cost of the house might be excessive for your needs, and he might suggest that you move to a 2 bed apartment so that he can maximise the value of an Income Payments Order.

Having said all the above, bankruptcy may well be the right option for you, as your pension would be totally protected. But it would mean another 3 years of living on very tight Reasonable Living Expenses = you should try and maintain DSA.

Jim Stafford
 
Hi Jim,

Thank you so much for your response.

I had to get a new childminder as my previous one, while very cheap, wouldn't take my daughter to school or collect her, meaning I had to do it, getting into trouble with work then as I wasn't doing the hours I should have been doing. However, she charges a lot more weekly but she does all the collections/drop offs and feeds my daughter meaning I can work the hours I'm meant to.

Likewise, my car (2000 Ford Fiesta) has started to give a lot of trouble and the cost of that alone has been unexpected. Car insurance has also doubled. My rent is actually very reasonable for the area I'm in and there are not much rental properties, but anything coming up now has been increased in price hugely. For instance, I'm in a 3 bedroomed house paying €500 monthly, but any exact same properties coming up now are looking for €650 monthly.

My wages, have taken a slight drop but I've also started a Healthcare policy due to ill health for myself and my daughter.

There are no 2 bedroomed houses in my area, and my daughter goes to school there. I did apply for a council house but my salary exceeds the limit and they do not take into account your outgoings.

It is good to know that my pension would be protected. I just want to live a normal life, instead of the constant worry. I'm not concerned about myself but for my daughter. She doesn't want for anything, though I do buy second hand clothes. I don't do anything for myself and I don't mind that.

Regards

Mary
 
Mary

It is possible that the Official Assignee may challenge the necessity of your Healthcare policy, particularly given that you are employed in the Public Sector, which generally has good sick pay conditions etc He might allow it if it is for a "pre-existing" medical condition.

Did your PIP assess whether you would be allowed the cost of the policy?

The Official Assignee may also challenge whether you need a car, particularly if you can use public transport to go to work.


Jim Stafford
 
Hi Jim

My car is worth €500 and yes I do need it for work as there is no public transport from my home town to work. Yes, I could certainly lose the health care alright.

I'm waiting for my PIP to get back to me as she is getting me as much information as possible.

Thanks

Mary
 
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