Change of circumstances after bankruptcy

KrakityJones

Registered User
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Hi

I'm likely going to be bankrupt very shortly. I am currently an employee, not making huge money but enough that I'll have a payment order - perhaps 500 per month.

A friend of mine is starting a business within the next year and have asked if I would consider working for him. The wages he can pay initially will be very low. It's a startup and likely not going to make money for some time. It would potentially be a great career move if the company takes off.

If (or rather when) I'm made bankrupt, my earnings as they stand will be used to calculate payment orders etc. What happens if I want to move to this company in say 8 months time - I'll be on far less money and have nothing to give to my creditors. Would this be seen as a move to try get out of the payment order and if so are there implications to this?

In other words am I allowed to move to a lower paying job after being made bankrupt? Time is against me in that I'll have to go bankrupt very soon however my friends business won't be up and running until towards end of next year. I don't want to lose out on the opportunity but I don't know where I stand on this.

If anyone could shed some light on this I'd be much obliged.

Thanks
 
My experience of this is that if your circumstances change for better or worse you just inform the OA and your payment agreement is amended immediately. Over the last year I started with an order, and when my wife moved jobs to a lower paid one, the order was cancelled by the oa, no questions, it's just your income.
If you can afford an order well and good, if you suddenly can't, you can't.
you cannot be forced to stay in one job when another with better long term prospects, but inferior short term pay, is available.
 
Thanks Stuboy, puts my mind at ease. As you say this has good long term prospects, and it would kill me if say in 3 years I see this company going from strength to strength knowing I could have been a big part of it but wasn't able due to my current situation which I'm trying to fix.
 
Hi

I'm likely going to be bankrupt very shortly. I am currently an employee, not making huge money but enough that I'll have a payment order - perhaps 500 per month.

As Stuboy has said, they're easy to deal with if you are up front. It's worth noting the distinction between a payment order and payment agreement. Firstly, the OA will seek an informal Income Payment Agreement (IPA) for you to pay €X. He has no powers to enforce this agreement but the benefit is that it is outside the courts process and can be adjusted easily in line with your income. However, if towards the end of your bankruptcy he feels that you have excess income now and going into the future, he can and will, apply for an Income Payment Order (IPO). Otherwise, if he was relying solely on the IPA you would be well within your rights to stop paying it as soon as you were discharged. The IPO is by order of the court and can only be adjusted by the court. It can run for up to 5 years from the date the order is granted so tread carefully.
It remains to be seen what, if anything, the new rules will change.
 
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