Member Examples

Redfisher. I went bankrupt 2006. Technically if you decide NOT to go back pre bankruptcy years for your retro you should be okay. In my case I am owed retro back to 2004 but I will ensure all my retro claimed post bankrutcy or after 2006. As for interest see if this makes sense:
2004 owed 1000 month x 12 months = 12,000 (interest 600 (12,000 x .05)

2005 owed 1000 month x 12 months = 12,000 + 12,000 from 2004= 24,000 (interest 24,000 x 5% =1200

2006 owed 1000 month x 12 months =12,000 + 24,000 from 2004, 2005 so interest now 36,000 x 5% or 1800
Think this is close. In summary owed interest of 600,1200 and 1800 for these three years or 3600 total. You continue same format for other years owed. If your amounts changed due to being re-assessed etc you would insert actual amount owed for that particular year and add it to whatever owed following year or years

Red fisher, I wrote a post on what happens to bankruptcy

About the interest I think you have to calculate like this:

ex; 10000 owned in 2009+3% + 3% for 2010 + 3%for 2011 +4.3%for 2012, you add the 3.27% and the 5% the same way. You repeat the same exercise for what is owned for 2010,2011,2012 and after all this you withdraw the 17.5% for fee and taxes. That's how it's been explained to me

Does this work for the last year being only 9 months retro?

Also so I work this out on the 3%, the 3.27% and the 5% for the 34 months? Not adding the interest to the principle each year.

OK I will try this thank you,

Redfisher...I did it wrong in the first place and Maggie set me straight. Take one years income..add 5%. Leaving the interest aside. take another year income, add it to the first year, and add 5%. leave it aside. take another year added to the first two years, add the 5%.set it aside. Now for three years you have been making interest at 15% and you add up the interest seperately. Not adding the interest every year to your total, stops it from being compound interest.This is simple annual interest. When you put $10 in the bank, you get interest. next year you add another $10 to the balance. The bank pays you interest on the total balance. Good luck.

I looked at Member #1s example and he recieved a 29% top up in interest. Over a period of 12 years.

$82 067 / $281 710 x 100% = 29.1%

Member #2s example recieved 48.9% top up in interest. For only two years retro going back 10 years.

$5931 / $12 120 x 100% = 48.9%

How is the interest figured out? Is the interest cumulative? It can't be simple interest? Can anyone break this down in a way that I can figure out my own breakdown in interest?

From what I read I am under the 3%, 3.27% and the 5%. So would I get 11.27% of my retro total amount in interest? And if so then the longer your retro goes back the more cumulative interest you get and therefore a higher return.

The above examples are for people who are at least 10 years back in retro does anyone have an example for people who only have a couple to a few years retro owing?

What happens to the retro refund if we had to declair bankruptcy because of being clawed back? Do we loose everything again?

Remember, we can claim the legal fees. My legal fees are approx 27,000 so when this amount is taken off my net take home at year end it will greatly reduce taxes owed.

Yes if you go back over 5 or years but below 5 years The lawyers fees starting away for your total retro .

Example quick calc
i was owed without interest 25000.00
i was owed with interest 26790.00
but i get back 22013.00 after legal fess a lost of $4776.00
then taxes as well see just 27 months retro is a total of 9.9% interest i get back. but i lose 7.93% interest because lawyers fees are 17.83

..

red i agree not bad we just have to figure a way to deal with the additional tax.

propat

Thank you for the examples. From what I got out of this is that on both examples we clear a little bit more than of our original retro after the lawyers fees are taken off. Then we get taxed.

Not bad...

sorry proposed agreement 2 examples

leave no vet behind under proposed settlement

where