Tilly Is Going Bankrupt (here we go again )

[The GodMother]

tills any news from the council guy?

[**Tilly**]

No news from council guy GM, spoke to someone else the other day, who didn't really know my case, so i am going to see the council guy tomorrow

[The GodMother]

be polite and demand your property

[**Tilly**]

aww GM im always polite thing is he can't give me what he has not got, there may have been someone in a worse situation then me that has been given the flat, if so good luck to them

[The GodMother]

i know but i was just trying to make u smile.

 

also after the year uve had i thought u would like a amile.

[**Tilly**]

Okay back to business

 

I will be going back to work in march , and more than likely bankrupt around the same time ish anybody know how it works when your working and go bankrupt

 

 

 

 

 

 

psst Gm believe me i am smiling

[palomino]

See if you can delay the bankruptcy until 6th April. Once you are made bankrupt your tax rate for the remainder of the financial year is nil.

No point in going bankrupt in March and only getting a few days tax relief!

[mcuth]

See if you can delay the bankruptcy until 6th April. Once you are made bankrupt your tax rate for the remainder of the financial year is nil.

No point in going bankrupt in March and only getting a few days tax relief!

 

Hmm, yeah, your tax code is set to NIL, but that's because the OR will want you to hand over your normal tax element of earnings as an IPA (or part of a larger IPA if disposable income)! Better to go BR in March methinks...

 

Cheers

Michael

[**Tilly**]

Ok so i have a choice, either go back part time 16hours and keep benefits or go back full time, i would rather go back full time, i know they take so much of your earmings, so would i be better off part time or full time, thanks for your replys guys just need to get this right.

[palomino]

Yes you do have to take into consideration how much you are going to be earning. If the amount untaxed is lower than the limit allowed by the OR for reasonable living expenses then you will still be OK and have the benefit of having the extra income that would otherwise go in tax.

 

If the untaxed amount is above the OR's limit then you may want to pay the tax. You're going to have to pay something, either to the OR or HMRC.

From my point of view anything paid to the OR goes to the creditors so I would plump for the HMRC.

 

You need to do the arithmetic I guess. However much you dislike the thought of money going to DCAs it may be that you personally end up with more in your own pocket if you go that route.

Here's a trivial example -

Assume you are getting £1000 per month and assume for the sake of illustration that the OR's limit for reasonable living expenses is £800.

If you paid no tax then the OR would want £200 per month.

On the other hand if you paid tax [and NI] this might come to £250 per month, leaving you with £750.

Hence you would want to go the nil tax route for as long as possible.

 

Please note this is a trivial example. Perhaps there is an accountant about who can plug some real figures in.

[mcuth]

Yes you do have to take into consideration how much you are going to be earning. If the amount untaxed is lower than the limit allowed by the OR for reasonable living expenses then you will still be OK and have the benefit of having the extra income that would otherwise go in tax.

 

If the untaxed amount is above the OR's limit then you may want to pay the tax. You're going to have to pay something, either to the OR or HMRC.

From my point of view anything paid to the OR goes to the creditors so I would plump for the HMRC.

 

I don't think that's quite right... from Income Payments Agreements and Income Payments Orders

"Applying a 'Nil tax' code

 

If you pay tax under PAYE, HM Revenue and Customs (HMRC) will usually apply a 'nil tax' code to you for the rest of the tax year in which you were declared bankrupt. This means that soon after your bankruptcy, your employer will be told NOT to take any more income tax from your wages for the rest of the tax year. HMRC applies nil tax codes for various reasons, and the new tax code will not tell your employer you are bankrupt. The nil tax code does not mean no tax is due. It just enables HMRC to claim the whole of your unpaid tax for the year of your bankruptcy.

 

There will be extra money in your pay because of the nil tax code. This money will form the basis of an IPA or IPO, even if you have no other real disposable income. A nil tax (or NT) IPA or IPO may be the only amount you have to pay, and the agreement or order will stop when your tax code changes. If you have other real disposable income, the IPA or IPO will reduce when your tax code changes" (my bolding)

 

Here's a trivial example -

Assume you are getting £1000 per month and assume for the sake of illustration that the OR's limit for reasonable living expenses is £800.

If you paid no tax then the OR would want £200 per month.

 

No, the OR would want ~50% of the £200 - see Technical: IEL Reference Guide: WAGES OWED

 

Cheers

Michael

Edited January 8, 2009 by mcuth

[**Tilly**]

Thankyou

 

That has made it a lot clearer, no other disposable income, will just be my wages, and luckily no other debts, so all what they take will go towards paying the shortfall of the mortgage, one more question, what happens after the year is up, do they carry on taking money from wages or is it stopped after that year and im free so to speak

[mcuth]

Thankyou

 

That has made it a lot clearer, no other disposable income, will just be my wages, and luckily no other debts, so all what they take will go towards paying the shortfall of the mortgage, one more question, what happens after the year is up, do they carry on taking money from wages or is it stopped after that year and im free so to speak

 

Np

As far as I can gather, if the IPA is only made up of the tax element, then at the end of that tax year (i.e. when your tax code changes back) the OR will probably suspend your IPA - the OR may even take the view that an IPA is no longer appropriate (see "What happens if I miss a payment under my IPA or IPO?" at Income Payments Agreements and Income Payments Orders)

 

Cheers

Michael

[**Tilly**]

hmmm up to 3 years , or if you stay on benefits no IPA OR IPO, or 16 hours,

think will still opt for full time, even if i stay on benefits, they still take in to account child benefit tax credit and payments made by ex, will just have to remember not to be a workaholic and do no overtime. thankyou mcuth it is had made it so much clearer now, was dithering shall i shant i go bankrupt but it has to be done i cant be doing with that hanging over my head, i take if i go bankrupt the shortfall gets passed to ex

[fedup74]

Ahh Tills just spent 1/2 hour reading this and I am nearly crying- you are soo brave, I can't believe how you are getting through all this- you must be such a strong lady!! I hope everything works out well for you cos by God you deserve it. Keep your chin up eh and keep positive- you are brill:)

 

>>>>>>>>>>>>>>>>>>>>>>>>>>>

[palomino]

I don't think that's quite right... from Income Payments Agreements and Income Payments Orders

"Applying a 'Nil tax' code

 

If you pay tax under PAYE, HM Revenue and Customs (HMRC) will usually apply a 'nil tax' code to you for the rest of the tax year in which you were declared bankrupt. This means that soon after your bankruptcy, your employer will be told NOT to take any more income tax from your wages for the rest of the tax year. HMRC applies nil tax codes for various reasons, and the new tax code will not tell your employer you are bankrupt. The nil tax code does not mean no tax is due. It just enables HMRC to claim the whole of your unpaid tax for the year of your bankruptcy.

 

There will be extra money in your pay because of the nil tax code. This money will form the basis of an IPA or IPO, even if you have no other real disposable income. A nil tax (or NT) IPA or IPO may be the only amount you have to pay, and the agreement or order will stop when your tax code changes. If you have other real disposable income, the IPA or IPO will reduce when your tax code changes" (my bolding)

This depends on whether an IPA is made or not. I'm assuming it isn't because the available funds aren't sufficient. You are assuming they are.

We're talking about different circumstances ...

 

 

No, the OR would want ~50% of the £200 - see Technical: IEL Reference Guide: WAGES OWED

 

 

I stand corrected - I had overlooked the percentages (brain fade).

 

This makes the arithmetic even more important. My gut feel is that the percentages alter this enough for it to be marginally better off for you go the March route.

[mcuth]

This depends on whether an IPA is made or not. I'm assuming it isn't because the available funds aren't sufficient. You are assuming they are.

We're talking about different circumstances ...

 

Not at all - the guidance I linked to says that if you pay tax, the amount of tax you would've paid (but won't because of the NIL tax code) will be payable as an IPA whether or not there is any other income that could be assessed for an IPA.

 

Basically, if you pay tax currently, there will be an IPA (for the tax year you're bankrupt in, so a max of 12 months) of at least what your tax would be - see the last bolded para in my quote from the guidance.

 

ISTBC, of course

 

Cheers

Michael

Edited January 8, 2009 by mcuth

[mcuth]

i take if i go bankrupt the shortfall gets passed to ex

 

Presume so, if you were jointly liable for it and the ex isn't going bankrupt of course...

 

Cheers

Michael

[gizmo111]

It makes absolutely no difference to you personally when you go BR, the nil tax code is not something you will gain from, all it means is the amount you would have paid in tax will be in your pay and you will have to pass the full [/B]amount on to the OR. (which is what Micheal has said)

For this reason I would go BR in March so you dont have to worry about putting it aside etc.

Also the fees are cheaper whilst you are on benefit.

You are correct in that the shortfall will be the sole responsibility of your ex, for him to deal with as he sees fit - the main thing is you cannot be chased for it after BR.

Use this calculator to work out what your surplus income is likely to be, when working - include any benefits you will get which you can work out on Start Calculation

If you are on benefits solely then it is unlikely that you will have any IPA as you will be living on the minimum.

[**Tilly**]

Hi Giz

 

Thankyou yep im on benefits at mo, but need to get back to work and get my independance back,so will have to pay the fee's and pay an IPA or an IPO, things are starting to look up and go my way im sure there will be more questions

[Tawnyowl]

Hi Tilly always enjoy reading your thread and how you are doing i know bankrupcy may be looming and your life seems full of up and downs like most of us but yours just seems to grab attention like a soap i am allways waiting for the next epsode,I am sure their is shortly going to be a happy ending.Just wondering how your mum is and if their is any news on the house front.Personally tilly i would chill for a while when you finally move i wouldnt push to hard on the work font soon maybe wait till the discharge .Recharge time would be nice for a while.Perhaps take the spring and summer to find your feet again after all you have been through.My view only tilly just wishing you wellTawnyowl.

Allways like to find a tune for you if possible a lot of us i am sure class you as a friend so heres a tune for you

YouTube - You've Got A Friend - Carol King with friends (stereo)

Edited January 10, 2009 by tawnyowl

[**Tilly**]

Hi Tilly always enjoy reading your thread and how you are doing i know bankrupcy may be looming and your life seems full of up and downs like most of us but yours just seems to grab attention like a soap i am allways waiting for the next epsode,

 

Lol tawny deffo feels like a soap sometimes

 

I am sure their is shortly going to be a happy ending.Just wondering how your mum is

 

Aww thanks tawny, my mum has actually been very ill, things looked bad at one stage but is slowly picking up

and if their is any news on the house front.

 

Well seeing you have i asked, i was actually nominated last week for a 2 bed flat great i thought, DD got all excited, made an appointment to see housing officer 4.30 yesterday, but was not to be, told me the people that where moving out had changed their minds and where staying put, they had let him know 20mins before he arrived, he stood in front of me with the tenenecy agreement for me ready to sign, but had tell me sorry no can do, so yep the soap continues.

 

 

Personally tilly i would chill for a while when you finally move i wouldnt push to hard on the work font soon maybe wait till the discharge .Recharge time would be nice for a while.Perhaps take the spring and summer to find your feet again after all you have been through.My view only tilly just wishing you wellTawnyowl

 

Tawny i appreciate your view and anybody that has got one like i have said before without all the support from peeps on cag me thinks i would have my own white padded cell

 

 

Tilly xx

[ja-de]

Hi Tills, how you doing hun?

So sorry I've not been online much, but been busy with my comp course (not even been on fb much either) lol, but I had to come back 'cos I was getting CAG withdrawal symptoms ;)

Well I've just spent the best part of today just catching up on your thread Tills, but I know that you've been getting loads of support. Really glad to hear that your Mum's feeling better, & like it's already been said, 2009 is your year hun, you've been rock bottom, so there's only one way to go now . mwahhh xxxx

 

{{{{{{{{Hugs}}}}}}}}

[The GodMother]

tilly i dont think a white padded cell would have worked

 

 

 

 

 

 

 

 

 

 

 

 

 

 

u would had demanded they changed it to pink

[ja-de]

tilly i dont think a white padded cell would have worked

 

 

 

 

 

 

 

 

 

 

 

 

 

 

u would had demanded they changed it to pink

 

I totally agree with you GM :D