SOAs, IPA s and the OR's attitude

DecisionTime

Anyone got an opinion on how 'keen' the ORs are to make sure you have an IPA? In other words, do they try hard to find ways to cut down your SOA amounts to make sure that you either have an IPA rather than not, or to increase the percentage paid under the IPA?

Either my OH or myself could probably get our employer to adjust our wages so that it minimises our likely IPA, not that there would be much left over currently as it is.

Thanks for any opinions on these questions.

tmcd01

The OR will looks at each individual case on its own merit. You will find that the allownace in your SOA in Br is much more generous than if you were in an IVA or DMP. The OR will only enact an IPA if you have an excess of £99 per month after all expenses. This however cannot include any money that you get for child benefit etc. If you are below £99 then no IPA.

Rosey321

There's a very helpful spreadsheet on the IS website which shows how they work out the figures. I'll hunt the link later although someone might beat me to it!! Also, there's various info dotted around as to what is deemed to be 'reasonable expenditure'. Again, there are averages but these may change from case to case depending on individual circumstance

Sunny_Bear

Be careful though, the OR will lok at previous bank statements and wage slips. If you wages suddenly go down after bankruptcy they will want to know why and it could be quite obvious that you are doing it to avoid and IPA which they wont take likely!

Do your SOA, allowances are quite generous and see what surplus you come up with, as long as its not more than £99 (not taking into account any child benefit etc) then you wont get one anyway!

startagain_2

Whilst everyone is quite correct in what they have said it has to be said that there are OR offices which seem to be more stringent than others, which is what I believe you were asking.
There are certain allowances that some OR staff seem to allow and others not..... presents, holidays, and others that the amounts vary a lot.
I was lucky and got everything OK'd - presents, holiday, pets and £15 a month for prescriptions which was very generous.
Try and expand your SOA as much as you can - I have taken a genuine drop in wages and the OR interviewer has taken this on trust. Whether or not they ask to see payslips before I am discharged I don't know, but am making sure I don't earn more than I have declared.
My only advice is to keep it honest and uncomplicated.
And yes,the OR's do have IPA targets to meet.
SA

HEADACHE

If you're self-employed its easier not to sign up for an IPA or IPO.To do this,work less for 3 months,earn only enough for basic bills and show no surplus.There wont be a court in the land who'll back the OR to sign you up for an IPA/IPO.
Try and avoid an IPA/IPO as you wont have any spare money for 2 to 3 years.

startagain_2

The OP is employed .... he is asking if they should ask their employer to adjust their wages in order to avoid an IPA.

DecisionTime

That link would be very helpful, if you or someone else could find it. Thanks.

Rosey321 wrote: »

There's a very helpful spreadsheet on the IS website which shows how they work out the figures. I'll hunt the link later although someone might beat me to it!! Also, there's various info dotted around as to what is deemed to be 'reasonable expenditure'. Again, there are averages but these may change from case to case depending on individual circumstance

philnicandamy

the link is on the following page under household expenditure spreadsheet

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part2/part_2.htm


BUT....Its very out of date (from 2006) & NOT to be relied on in any way shape or form

startagain_2

This is the link to the Insolvency website page that has all the different guides listed. OR interview is amongst them and will have the table for IPA amounts.
http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1

Beat me to it phil - I am at work!

SA

DecisionTime

Thanks for your comments. OH and I previously had a small business partnership, which became insolvent and ceased trading and is part of the BR. Our income had dropped and we are now both working on a employed PAYE basis for a Ltd company owned by our employer, at a slightly lower income than we earned as self-employed - but at least it will be regular. Therefore there are proper payslips to show our income, and contracts of employment etc. So as our employment status has changed completely, I would have thought the OR would recognise that there was no direct comparison when looking at any change of income. Does that seem reasonable?

Sunny_Bear wrote: »

Be careful though, the OR will lok at previous bank statements and wage slips. If you wages suddenly go down after bankruptcy they will want to know why and it could be quite obvious that you are doing it to avoid and IPA which they wont take likely!

Do your SOA, allowances are quite generous and see what surplus you come up with, as long as its not more than £99 (not taking into account any child benefit etc) then you wont get one anyway!