At what stage do you agree your IPA? + early discharge??

Desperate4help

Hi again everyone,

The questions keep coming from me I'm afraid! :-)

When in the whole BR process do you agree your IPA with the OR? I've had a search around the forum but haven't really found a definite answer. It appears some people are really quite far into their BR and are still unsure if they'll get hit with an IPA or not? So how do they know what they can/can't spend in the meantime?

As I have a fairly good wage, I'm pretty much 100% sure I'll have to do an IPA - which is fine, I'm prepared to pay my dues etc. and it'll still be a relief to be debt free in 3 years time. But when do I actually sit down with them and agree how it will work and how much it will be?

If it's not immediately (ie date of court case) then what happens to my wages that I'll be getting paid every month? assuming I open a new cash account and get them paid in to that, should I not actually touch it?? Obviously I'd need to pay rent etc but I'm confused about how I know how much I'm 'allowed' to spend until it's all been formally agreed?

Also, while I'm here - what are the rules about getting Early Discharge? are their certain criteria they're looking for, or is it just luck of the draw? I know it's v premature to be hoping for such luck before I've even officially started to prepare for going BR but I'm interested to know what the odds are! ;-)

Thanks in advance
D4H

crowman19

The IPA starts from whenever it is implimented for 36 months. Whatever you do with the excess before then I'm pretty sure is up to you.

crowman19

With regards to ED I think this is when it is a straight forward case and they conclude their investigation quickly.

crowman19

Forgot to add though if you are on a nil tax code make sure you keep the tax amount somewhere safe as this will need paying to moon beaver.

Desperate4help

Thanks Crowman :-)

Moon Beaver????!!!!!! who or what is that? And why would I have a nil tax code. Oh dear, something else to have to worry about! ;-)

crowman19

When you go BR you will not pay any tax for the rest of the financial year. So basically you will get the extra in your pay. This payment needs to go to a company called moon beaver which is the company who collect the money from you. I think if an IPA is set up it goes to moon beaver too, but I'm not too sure as I only went BR last weds so have all this to come myself.

crowman19

By the way do not worry. It is not as bad as you imagine it to be.

Three_Clicks

Hi D4H

You ONLY get ED if non of your creditors objects to it!!!

We had JUST 1 object so we nave to wait the FULL sentence... :-(

IPA --- Avoid it - Yours life & ALL of our lives are %")&!+ (can't say that word - can I?) for many years now. So why should you willingly (SP?) keep paying £ back???

I told my OR that I would rather stay on JSA then do that!!! :rolleyes: :rolleyes: :rolleyes:

Desperate4help wrote: »

Hi again everyone,

The questions keep coming from me I'm afraid! :-)

When in the whole BR process do you agree your IPA with the OR? I've had a search around the forum but haven't really found a definite answer. It appears some people are really quite far into their BR and are still unsure if they'll get hit with an IPA or not? So how do they know what they can/can't spend in the meantime?

As I have a fairly good wage, I'm pretty much 100% sure I'll have to do an IPA - which is fine, I'm prepared to pay my dues etc. and it'll still be a relief to be debt free in 3 years time. But when do I actually sit down with them and agree how it will work and how much it will be?

If it's not immediately (ie date of court case) then what happens to my wages that I'll be getting paid every month? assuming I open a new cash account and get them paid in to that, should I not actually touch it?? Obviously I'd need to pay rent etc but I'm confused about how I know how much I'm 'allowed' to spend until it's all been formally agreed?

Also, while I'm here - what are the rules about getting Early Discharge? are their certain criteria they're looking for, or is it just luck of the draw? I know it's v premature to be hoping for such luck before I've even officially started to prepare for going BR but I'm interested to know what the odds are! ;-)

Thanks in advance
D4H

philnicandamy

sadly ED is neither a right or a guarantee...its dosent matter how many creditors are involved or how simple your case is...the procedure can be shelved AT ANY TIME its all down to how busy the or's office is at the time..and its not down to something as simple as if no creditor objects...many peeps here some very simple cases have sent ED paperwork back & still had to go the full 12mnths

JCS1

Early discharge also has to be recommended by the examiner, not all cases are suitable for early discharge.

Desperate4help

Three_Clicks wrote: »

Hi D4H

IPA --- Avoid it - Yours life & ALL of our lives are %")&!+ (can't say that word - can I?) for many years now. So why should you willingly (SP?) keep paying £ back???

I told my OR that I would rather stay on JSA then do that!!! :rolleyes: :rolleyes: :rolleyes:

Surely you can't just refuse?!?!? I won't go into the big story again, but in a previous post I explained that I'm in the crazy situation (due to divorce/house in negative equity/ex generally being a pain) that I can't currently cope financially, but once I went BR I'd actually have quite a bit of surplus after my 'reasonable living costs'. So I doubt very much they'd let me get away without doing an IPA?? Would be lovely if they did but then I'd be getting away 'scot free' which even I would feel a tad guilty about. Is it possible to challenge them on how much or at least try and bargain for it to last less than three years? After all, as the 70% they'd take would potentiall be £700 a month I'd be paying back quite a tidy sum if it lasted three years and others don't pay back more than a fraction of their total debt? Especially as I'm being forced into this due to my ex? Would that gain me any sympathy do you think - I'm back on my own again trying to make a new life for myself after getting out of a v controlling marriage etc etc?

Thanks for your replies everyone :-)

D4H