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By Johnturl
#28983
Hi
I am new to the site but need some advice, I lost my business I had run for 7 years in January and could not keep up any payments so went bankrupt.

I went bankrupt in May 2013 and have been claiming Job seekers allowance.

I have not told the Job Center I am bankrupt and have to go and sign on every 2 weeks. I feel so guilty having to lye to them every two weeks as I don't want to work during my bankruptcy or I will have to start paying back my debts.

But my advisor gives me grief every two weeks that I have not found a job with my skills. I am just finding it very hard at the moment and would be grateful for any advice.

My debts that I went bankrupt with are big so I don't want to have to pay them back over the next 15 years with an order from the OR.

I really feel I have lost enough, my home, my business, everything I owned. I just want it all to be over so I can start again and get my life back.

Regards

John
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By Geraldine
#28996
Hi there John and welcome to the forum.

I am very sorry to hear about your situation. I would say that you do not need to avoid trying to find a job. If you get a job and start earning a wage it does not mean that you will automatically have to start repaying your debts.

The fact is that you will never have to repay a penny even if you are working as long as your income does not exceed your living expenses. My advise would be to first understand what these are. You should use the BeatMyDebt.com living expenses guide to do this. You can earn (after tax) anything up to the same amount as your living expenses without being at risk of having to make payments towards your debts..

You can the satisfy the job centre's requirement to try and find a job but stick to a lower paid one if necessary. Then after you are discharged from bankruptcy you can look for better paid work. If no income payment agreement has been put in place it never can be after you are discharged.
#29013
Hello John

Good to have you on the forum :) There is absolutely no reason for you not to take a job while you are bankrupt and in fact I would encourage it. The key is as Geraldine has said that you will not automatically be asked to start repaying your debts once you get a job. The trigger is whether or not you have any disposable income after all of your reasonable living expenses have been covered.

What type of job do you expect to get? Do you feel that the income you would generate would be greater than your monthly living expenses?
By Johnturl
#29026
Hi

Thanks for your reply's, I was looking for Jobs around £25,000 to £35,000 as I have 10 years experience working as a retail store Manager.

My problem is that I have no home and I am staying with my parents as I can't afford to rent a property so I don't really have any expenses.

I would imaging they would take all of my income apart from the money I need for food and traveling to work away from me.

If I was going to get a low paid job I would still have a lot of disposable income due to my situation of having no expenses.

Kind regards

John
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By Geraldine
#29028
Hi there John

If you are living at home you can still include things like paying lodgings to your parents of at least £100 a week as you would have to pay at least this if you were unable to stay at your parents. As such you would be able to claim a certain amount of expenses. Having said that I agree that if you remained with your parents this is probably the cheapest type of accommodation and so you might well have disposable income even if you took a lower paid job.

Having said that if a job comes along before you are discharged I would not turn it down simply because you are worried about having to make payments towards your debts. Given how difficult it is to find jobs at the moment I think that would be crazy.

Also it is important to bear in mind that you would be able to argue with the OR that living with your parents is no longer tenable either for personal reasons or you need to move to be nearer a new job. That being the case you would have to start to rent a place with the associated bills so in fact you may well still be in a position of having no disposable income even after taking a better paid job..... Worth a thought at least.
By Johnturl
#29030
Hi

Thanks for your reply, I will consider what you have said and I know jobs are hard to find at the moment, I will see what happens if I get offered a Job.

Thanks for your comments.

Kind regards

John
#29041
Hi there John

I understand the concern about getting a job and therefore the possibility of triggering an income payment agreement (IPA) if you are bankrupt. However I wholeheartedly agree with Geraldine when she says that it is important not to base your decision on whether to take a job and further your career on this worry alone. At the end of the day you will be allowed reasonable living expenses before anything is taken but even after these if you have to start paying an IPA these payments will only last for 3 years. Your career will last for many more.....

Please do come back to use if you are considering a job offer and need more advice about how this will affect you.