IPA Moonbeever RTLU

Desperate4help

Hi everyone - linked to a question I just asked today on here - I'm curious as to what you guys did in the period between your court date and actually starting to pay your IPA? If you're in paid employment, what did you do with your wages after you'd paid rent/mortgage/bills etc? Surely they don't just let you spend away with no debt repayments to have to cover like you did previously??

thanks :-)

d4h

alastairq

Surely they don't just let you spend away with no debt repayments to have to cover like you did previously??

what ''debt' repayments?

You have to remember what BR actually is...and to whom it is applied?

Only someone who is 'insolvent' qualifies for BR..which means, someone who is unable to meet their payments to creditors.

so...what debt repayments are these? Surely not referring to the token payments one usually enters into...with help from the likes of CAB, etc?

BR means, all debts included in the BR are wiped clean.

gone...

magically disappeared.

sort-of, anyway.

The OR takes control of your assets.....[but, leaves you enough to have a reasonable, if not extravagant, standard of living.]

BR is NOT a punishment..nor is it criminalised, and the OR see's to it that it is not seen as punishment.

The IPA is simply a 'collection of assets'...which may or may not be equally re-distributed to creditors.

Lots of assets, or surplus income, means [after admin charges] something for the creditors...in proportion to what they're owed..

No assets, and insufficient income to have a surplus, means zero for creditors.


so, unless the BR accrues a debt subsequent to BR being declared, then there are no debts.

So, until the OR contacts you, to inform you exactly how much, when and for how long [up to 3 years..not long really]...your IPA is, then whatever money you have surplus, is yours.

This is simply down to admin problems,ie dependant on the OR's workload.

In my case, BR was in May, NT tax code came in August, 1st IPA payment in September, last one next April.

I would suggest putting surpluses aside somewhere....remember, you have little access to credit for that 'rainy day'....

Desperate4help

Thanks Alistair! :-) that's all very clear (and uplifting!). so your IPA is only for eight months then??

If this is what I do, and they do take a while to sort out the IPA then don't worry I shall be stuffing any surplus in my mattress for a rainy day! Knowing my luck they'll sort it immediately though ;-) Although, on the plus side, I suppose the sooner you start paying it the sooner it's all over!

crowman19

Desperate4help wrote: »

Thanks Alistair! :-) that's all very clear (and uplifting!). so your IPA is only for eight months then??

I think Alistair is referring to the nil tax paymenst to moon beaver.

alastairq

Absolutely..I hadn't actually got that far in the explanation......haven't got into surpluses, etc....

The NT code means zero tax....an advantage of BR, the tax man gets included too...which means I now have a surplus on my income...since I don't pay tax...therefore, OR puts me on an IPA....which usually amounts to what the OR assesses as one's PAYE tax payments...on one's normal income.

From the start, I didn't really earn enough to have any significant surplus [I believe we're allowed £100??] for the OR to gather in on a 3 year IPA...so my present [tax-free] income will only last until the end of the tax year......whereupon I start paying tax again....hence my income falls, hence, zero IPA...

which all goes to explain why my IPA ends in April next...


UNLESS....I get a magnificant pay rise beforehand?

[Or, before the nice kind OR gets me an ED......]

Fat chance..the people I work for are insolvent anyway.....ran out of money last July!!