I'm thinking of declaring bankruptcy.
Yourquestion: I am thinking of declaring bankruptcy soon. I know exactly what my income will be over the coming year, but due to the nature of my work I will earn more in some months than in others. To be more specific, I will earn more in the first three months following my declaring bankruptcy than over the course of the rest of the year. Also, my earnings for the entire year will just about meet my expenditures.
What I would like to know is, will the official receiver who handles my case allow me to calculate an average monthly income based on my earnings for the next 12 months, or will they expect me to pay into an IPA on the grounds that I technically have some 'disposable income' for the first three months of bankruptcy?
Thank you very much for your help.
Answer: If your wages or earnings fluxuate or are not fixed, the OR can use an average or review your wage slips or deposits periodically, say every three (3) months or so to get an average.
If for any reason the OR stated you had a surplus and ordered you to make payments and a few months later your earnings changed/dropped and you could no longer make payments, you can advise them of this, show documentation in the form of wage slips, etc, and they can modify or change the order to pay.
I hope this has answered your question.
For more information and assistance, please complete our eligibility form at our web site www.bankruptcy.org.uk or ring us at 0800 690 6855.