I am self employed and my income can vary greatly from week to week. When I am declared bankrupt will the OR expect enter into an IPA.I trade as a sole trader and employ 1 person Would the OR expect me to use the business profits to pay into an IPA.
Technically if it were a limited company then you as a director could could step down become an employee for a year, pay yourself minimum wage and watch any profits escalate whilst you are in bankruptcy.
Whilst your sole trader business may need working capital this will be looked into so as not to create a similar scenario for the avoidance of not contributing towards an IPA.
Hi John, how will the OR be able to set the amount to be paid when my income is variable,I'm in the building industry and as you can imagine it can go in fits and starts at the moment. I am concerned that they will set an amount that I may not be able to pay because work has gone quiet.
they would normally take an average of the last 3 months. You may have to submit details of your income each month but at no time is the amount payable into an IPA fixed. You have a bad month then you submit the figures to the collecting agent and your payment will be revised accordingly and set at zero for that month if appropriate.
Self employed going BR
Posted - 16 March 2009 : 21:51:41
