Earning While Bankrupt

[chrissa1]

I petitioned for Bankruptcy last December. I just have my pension to live on.
If I got a small job like Examination Inviglilating, would I have to declare it to the OR?
Is there a limit to what you can earn per annum as a bankrupt? Thank you.

[bednobs]

i think it's ALWAYS wisest to declare everything to the OR, then there can be no come back later

[themas]

Chrissa - you should have been given info. by the OR about this. You have a duty to notify them of any increase in income within 21 days of it occurring. Depending on your circumstances this could lead to you being given an Income Payments Agreement or (if you didn't accept it) Order, which would last for 3 years and mean you had to pay over to the OR all "surplus" income. (I assume that at present you don't have such an Agreement or Order.)

However, if you were able to produce figures showing that your expenditure went up as well as your income going up this might not happen - but they would look at the info. in some detail. The safest approach is to do nothing about increasing your income and you can then be free of the bankruptcy in (at most) 12 months.

[sherrardk]

Chrissa - exam inviglilating is really boring!

[MASS1961]

Themas,

I am currently bankrupt and will be discharged early November 2012, however, I am required to pay to the OR an agreed amount for 36 months from the date of bancruptcy, Nov 2011. So yes I will be free from the bankruptcy but not free of the financial obligation.

Mass

[MASS1961]

I also have to notify the OR of any increase in my income

[sherrardk]

I think if you are in a position to pay something back when you are made bankrupt then you have to pay it back for three years. However, is you are not in a position to pay something back at the time you are made bankrupt then start earning when your bankruptcy is over (usually 12 months) then you're under no such obligation.

[cathfromsaron]

yes there is, and your advisor is the best person to ask!

ditto, honesty is the best policy!

[chrissa1]

Themas, I'm a 61 year old widow and I'm (just) managing to live on my pension. I'm never going to be able to earn enough money to pay anything back. That's why I became bankrupt.

Mass, you must be a lot younger than me and have a good few year's earning capability ahead of you.

I'm only talking about a couple of hundred pounds here, not thousands but from what you're all saying, it's not worth it. I'll keep on scrimping.

Sherr, yes it is boring. I did some in Northern Ireland in the 80's but only lasted a week because it was costing me more than I was earning for a childminder. Things never change.

[chrissa1]

So, if I sold some scrap gold, would I have to declare that? (£100-£200)

[albaqwerty]

Chrissa, I wouldn't tell them about that. Only earnings.

[chrissa1]

I have the feeling they're monitoring my bank account and will pick up on these things.

[bednobs]

get the money in cash then :)

[chrissa1]

Now, would I do that????? :/

[rowanwitch]

get the money in cash...maybe do a car boot in the summer too if you have a friend who will help so it looks like you are selling her stuff...

[chrissa1]

That sounds like I will be kept under surveillance rowanwitch.

[EDDIE51]

£200 or so earned will not make much if any diffrence, your expenses will go up due to travel cost and that can be allowed for as nessesary expenses.
I would go for it.

[Kristal53]

you can sell your scrap gold and get cash on most high streets. I personally would not tell them anything as often honesty is not the best policy - that's just me and probably the gypsy in me but keep as much as possible under the radar - are you fit? -what about getting a little cleaning job on the side for cash?

[chrissa1]

"Are you fit"? I didn't know what you were going to say next!!!!! Lol.

No. I'm a bit creaky and have enough trouble keeping my own house clean.

[themas]

Chrissa

The rules seem daft in the sort of situation you're in, but you do have to notify any increase in income. Then what happens is that they re-assess whether you have a "surplus" of £20 per month or more - i.e. your income is £20 or more greater than your reasonable expenditure. If it is, then they can set up an income payments agreement for you to pay that surplus. This agreement runs for 3 years from the date it starts. However, it may be that your "reasonable expenditure" is at present below the figure they allow & in that case they would be less likely to insist on making a payments agreement.

If you do a bit of invigilating then your income goes up for that month, & then goes down again so you might find you had all this rigmarole just to make one or two payments, because the payments agreement would be revised to a nil payment when your income went down again.

However, if the extra income is as little as you say & you have extra expenses related to doing the work you might be OK. You could ring the OR and ask about the possibility & see what they say - you are not then obliged to do any work; they can't make you do it. But make sure you can quote them the amount you will earn & amount of extra expenses etc.

I very much doubt whether your bank account is being monitored, & as sure as can be that you are not under surveillance. They just don't have resources to do this sort of thing unless the case is one where their suspicions are aroused that the bankrupt is attempting to defraud the creditors by hiding assets etc.

[chrissa1]

Thank you Themas.