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Bankruptcy and moving

ok soo curretnly i house share and rent a room due to finanical reasons.

now when i go bankrupt my financial situations will obviouslt change dramatically. and at some point it would be nice to get my own place maybe a small 1 bed flat.

im pretture sure when i go bankrupt i will end up with an IPA due to the money left over wich i believe last 3 years?.

soo how do you go about moving are you allowed to upgrade your living accomodation while under

a) bankruptcy first 12 months

b) still paying ipa 3 years

is it just a case of moving an redoing yoru soa and agreeing new payments for ipa purposes ?

Comments

  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I think you are correct. There could be any number of reasons you would have to move out of your present accommodation so if you do move to a one bedroom flat so be it. Your IPA will go up or down accordingly however I'm not sure how long the suspension of an IPA would last - I think these rules changed just recently. Dalip is the best person to ask about this.

    :j :j


  • suspension of an ipa ? what that mean i assumed ipa all last 3 years and you payed what or agrees.

    or do you mean inthe event i have ipa but then move and can no longer afford to pay anything
  • shadowdragon
    shadowdragon Posts: 1,686 Forumite
    if say your outgoings are £500 pm while living in shared accomodation and your paying £200 per month IPA, if you get your own flat your outgoings might rise to £800pm and because of that your surplus income will drop therefore the IPA has to be adjusted to fit with that surplus.
    "Well, that sounds like a pretty good deal. But I think I got a better one. How about I give you the finger, and you give me my phone call"
    "There is no spoon
    "

    ~~MSE BSC member #172~~
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Yes, thats what I mean fishdude. The IPA (incidentally is an income payment agreement agreed between you and the OR - if you don't agree with it don't sign it).

    :j :j


  • k cheers :) i know you say this is ok but..........it seems strange they will let you move to a more expensive place and as result you cant pay them.

    and they let you do that ? lol
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    It doesn't mean you can move into a 4 bedroom house if you are single but you are allowed to move. Tenancies end etc. You say you are house-sharing well what if your agreement ends or the owner of the house wants you out or you fall out with the others in the house, or you went into a relationship and moved in etc etc etc. Life happens and you'd have to move on. The OR has to accept this as long as you are moving to something that would suit your situation and don't have Afghan refugee status!

    :j :j


  • shadowdragon
    shadowdragon Posts: 1,686 Forumite
    I thought also when I was first looking into BC, I figured they would come and strip the house of all but the essential items, that I would pretty much been horse whipped into servitude for the next few years. (steady MAX!!!)
    "Well, that sounds like a pretty good deal. But I think I got a better one. How about I give you the finger, and you give me my phone call"
    "There is no spoon
    "

    ~~MSE BSC member #172~~
  • dalip
    dalip Posts: 7,045 Forumite
    As FYP says. Once an IPA is in place it now stays there for 36 mths.If you paid the first installment on say jan 08 then that egreement will end in dec 2010,regardles of how many payments you have made to it. So say you moved to a different area(i changed jobs)and your expenditure rose then your IPA could be suspended. The problem with this would be that for the whole 36 mth you would be required by law to notify the OR withinn 21 days of any payrise,bonus,overtme ect. The OR can then lift the suspension and your payments would resume. Dx
    Free impartial debt advice available from: National Debtline - Tel: 0808 808 4000 | The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 | Find your local Citizens Advice Bureau
    Laugh at yourself and others laugh with you.Laugh at others and you laugh alone. BSC No 107:D
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