Bankruptcy

[CoolCat]

Latest is I have stopped talking to HMRC. And my shrink has written to HMRC asking them to put my case on hold for a year.

Good luck mate.

You could try and get free legal advice via citizens advice, who maybe able to point you to legal advice. Or some of the university law departments get their students to offer free advice as part of their learning, not sure how to tap into this but you maybe lucky and get a good one to help.

[CKP Insolvency MVLs]

It depends how much you are going to earn over the next few years. It's best to get discharged as soon as possible. When my brother went bankrupt he went to be a mature student for a few years until he was discharged.

If any income contributions are to be made to the bankruptcy estate then an agreement (IPA) or order (IPO) has to be made before the bankrupt is discharged. Only disposable income over £20 per month will need to be paid in and this will be for a maximum of 3 years from the date that the IPA/IPO starts. If no IPA/IPO is made before discharge, then no income contributions will have to be paid.

The discharge usually happens automatically 12 months after the bankruptcy order.

If you are petitioning for your own bankruptcy, then the usual way that any income contribution is calculated is by reference to an income and expenditure sheet that is completed with the petition. If this sheet reasonably shows that there is no disposable income then no IPA/IPO should be sought. The bankrupt by law must let the Trustee (the person who is in charge of the bankruptcy estate) know if there has been any upward changes to their income within the period that they are undischarged (as said before usually 12 months).

The query with the (approved) pension comes in where the bankrupt potentially can draw down on their pension due to their age, etc but choose not to do so within the 12 months, so to avoid having to pay anything extra into the bankruptcy.

As said in my earlier post, at the moment the bankrupt is not compelled to make the pension funds available and neither can the Trustee force them to make the funds available. However the outcome of the pending appeal in Horton v Henry may change this.