IPA Question

Feelingfoolish_3

Hi

Once you have gone bankrupt how soon do would you start paying your IPA?
For example:
August - use surplus income to pay BR fee from July's pay
Sept - Speak with OR perhaps? - What would I do with the surplus income I have this month (end Aug pay) assuming my IPA would start at next pay day? (End Sept pay)

Hope this makes sense

thanks

tommus

I went br mid June,had OR interview the following week and was told my ipa would start sept 1st.had letter from moonbeever last week confirming this. I don't think it gets backdated,well mine wasn't.

debtinfo

You do not have to keep any surplus income between when you go bankrupt. The IPA will last for a maximum of 36 months from whenever it starts.

The IPA can start at any time before you are discharged. It is normally at least 2 months before the first payment has to be paid and is very often longer than that

Feelingfoolish_3

Thank you for your replies

So that means that I can keep the surplus money and spend it how I wish (ie keep it for xmas?) and forgive me if I'm being thick but who is moonbeever???

peachyprice

Yes, you can. Enjoy!

Moonbeever are an agency who collect IPA's on the OR's behalf.

debtinfo

In a classified report recently released by NASA for the 40th aniversary it was revealed that a small animal does live on the moon.

Either that or it is the agents that the OR uses to collect the IPA

wurzella

ROFL Anyone get a photo of this elusive moon based lifeform?

On this topic, I'm self employed so I don't have any tax taken out of my income. Would this advice still apply? That I can expect a delay in starting payment even on the nil tax code IPA? That means I might get a month or 2 tax free, that would be very handy

Maybeelady

wurzella wrote: »

ROFL Anyone get a photo of this elusive moon based lifeform?

On this topic, I'm self employed so I don't have any tax taken out of my income. Would this advice still apply? That I can expect a delay in starting payment even on the nil tax code IPA? That means I might get a month or 2 tax free, that would be very handy

Would also like to know about this!

Also how does the surplus income work. Is it a pre-arranged set amount with your OR that they they take out every month or is it whatever is left in your account after all living expenses have been paid out on a monthly basis?

philnicandamy

the OR will take a percentage IF you have a surplus of at least £99 per month after living expenses are paid

for example



BUT.....if your finances changed over the 3yrs the IPA runs say you drop below the £99 then the OR would freeze the IPA...any changes in financial circumstances you'd have to let the OR know within 21 days whilst bankrupt

Feelingfoolish_3

HA HA what a class name! (I wonder if anyone is busy searching google for a picture!!)

Thanks again for your replies

philnicandamy

Hmm did search once......the results scared me to death & I vowed NEVER again