Bankruptcy ipa

milesR

Hi all,

we went bankrupt on 3/4/08. Had telephone interview on 16/04/08.

OR stated that we would have to pay an IPA but we have heard nothing since.

Should we contact him or just wait?

I have also read on here about nil tax codes. Can someone please explain what these are for?

PixiePie

The general consensus seems to be to not contact ORs unless it is in your interest - as the IPA is on their shoulders it's in their interests to get you to sign it asap so you can start paying. I may be wrong but I thought that you only pay it from when you sign it, they can't demand money for previous months, and if you manage to get through the whole 12 months without signing.....

The Nil tax code - you get given a nil tax code usually when going BR for the employment you are in at the time of going BR. If you change job at any point after BR you will revert back to normal tax code, or if you get to the end of the tax year (April). (SOmetimes they don't apply it if you go BR in Feb/March, as it's not worth it, being so near the new tax year). You get paid your wage INCLUDING your tax. You should NOT spend this, but you give this to a company called Clarke Willmott that handle the IPA payments for the IS. They will be in contact with you about this, so if they haven't and you have had the nil tax code applied already and therefore are receiving a bigger pay packet make sure you put the extra aside ready to give to Clarke Willmott when they contact you - they will ask to see a copy of your payslip to see whether or not the tax code has been applied, if it hasn't they will try and sort it out, if it has they will provide you with details on how you pay them the money.

Hope that helps
Pix

milesR

Pixiepie,

Thanks for your reply. Am i correct in thinking that if I hear nothing for the whole 12 months, then i will become discharged and not have to pay anything?

My tax code has not changed which is one of the reasons why I think the OR might have forgotten about me.

dalip

Yes pixe is right. The OR has to send you a letter proposing an amount for an IPA(should have a breakdown of your i&e and what they have allowed/disallowed,but the OR sometimes forgets:rolleyes: to include this)which if you agree you sign and send back. The OR then gives you 14 days before he signs it(bit like a cooling off period)he then sends details to clark willmot. They contact you with several ways to pay and a date for the first payment. It is not back dated. So again like pixie says keep quiet;) .D

milesR

Thanks Dalip,

Am i correct in thinking that you are automatically discharged after 12 months, if you have had no further contact with the OR.

dalip

Yes on both questions.Even if you have further contact with the OR you are still discharged after 12ths. The tax thing does take a while to come through so don't get too excited just yet:D D

fudge59

I was made BR on 9 May 2008 - had my telephone interview on 13 May 2008, and was sent the proposed IPA on 23 June 2008.

I disagreed with what they had proposed (as I couldnt see how they thought I had £200 more spare a month than I had said I had), sent a letter back saying I didnt agree to it on 24 June 2008, and recieved an email saying it'd been given to the senior person for consideration. I havent heard anything (had even sent an email to the bloke I was dealing with on 21 July 2008, and havent heard back from him either) - so it's just a waiting game it appears!

milesR

Thanks again.

Is it usual to have not heard anythig re the IPA four months after the Bankruptcy.

dalip

It is normal not to hear if they decided not to do an IPA. The OR only writes to you if an IPA is viable. If not they don't actually write and tell you that.D

milesR

An IPA is definately viable, we were expecting to have to pay about £750.00 per month. Our IVA was £875.00 per month.

When we had our telephone interview the OR said we should expect to pay about £500.00 per month. We were well happy with this, but are now getting worried as we have heard nothing.

dalip

Why worry;) just enjoy the extra cash.D