Author Topic: In an ipa but chance of a new job but will leave me with surplus income? Help!!  (Read 1224 times)


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Hi all,

I was declared bankrupt 8th April 2011 and was put into an Ipa for 3 years of £32 a month. My job have approached me and would really like me to take on a new job that will be coming available may 2012. This all sounded great after a terrible few years. My husband left me and stupidly I took all debt in my name and I was left in no position to pay it having 2 kids and no financial support from him and CSA are no good for love or money!!! Therefore I was in no other position than to go bankrupt!! The OR did all their calculations and worked out I had a surplus income of £32 a month!! I have been paying this monthly since. But with the proposition of this new job I thought things were looking up BUT I sat and did my calculations!!

I currently work 16 hours a week and receive £10050 per annum for this. Onto of this I get housing benefit, council tax benefit, working tax credit, child tax credit and child benefit. By being in receipt of the tax credits I am eligible for nhs card against costs and I can defer my student loans.

If I was to take this new position it will be 32 hours a week and more an hour resulting in annual salary of £25000. This all seemed great but upon digging and researching I found out I lost housing benefit and council tax benefit which I didn't mind as I felt I would be more self sufficient. I also would loose working tax credits which in return would loose the nhs exemption card. Again this I was not too worried about. I also would receive a substantial drop in child tax credits to approx £29 a week. I would still get my child benefit of £33.70 a week BUT  my student loan would kick in and would be approximataly £1100 per year.

I calculated all these figures and after the losses and counteracting with the gains it worked out that I would be approximately £58 a week better off.

My final check was with my case worker and the OR and they point blank said that the offer of a promotion etc sounded good but any surplus income would be taken towards the IPA after a new I &E assessment.

This really left me very disheartened as I already felt that doubling my hours for extra of about £58 a week seemed soul distroying but I felt that it would be the building blocks towards me becoming self reliant for my kids and I and this could do nothing but good for our future.  But when the OR told me this I felt like it is all worth nothing!! I have no incentive to try rebuilding my life after a soul crushing separation/divorce. My kids andmy life was thrown in turmoil and the organising of all the bankruptcy was very tiring mentally and on health. I finally feel that I am rebuilding my life and the opportunity found me I was head hunted basically and it has all been for nothing!!

Is there anyway I can try rebuild the life of my kids and I without being thrown further put downs!!

Please advise if there is anything that I have missed or any general advice on my situation.

Kind regard


James Falla

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Hi there Kelly
I do not think you have missed anything. If you do start to earn more and this ultimately means that you have more disposable income, then you will have to increase your IPA. But my advice is take the new job anyway. I understand that in the short term any extra you get may have to be added to your IPA. However, in May 2012 when the job becomes available you will only have 24 months of payments left. Then they will finish and everything you earn you can keep and you have the opportunity of taking your career forward and rebuilding your life. Don't hold that back just because it will mean you will have to increase your IPA payments in the short term.
Debt Expert & Author