Any way to void / complete an IPA early?

IamSheb

Hi all, like many on the board I got an IPA some 5 months after actually declaring myself BR, and as they can take somewhere between 50-70% of your desposable for the next three years, seems to me pretty pointless to actually try to earn anything more than is actually needed per month..

So, I wondered if there's any way to get rid of one once you've got it - now I'm sure people will respond and tell me this is unethical or similar so let me clarify - I'm not asking for advice in breaking the law, defrauding anyone or anything similar - just wondering if there is some mechanism that I'm unaware of to get rid of the IPA once it's in force.

If not then I guess I will have to accept I'll be paying up if I manage to get a better job (not that /that/ is particularly easy at the moment...)

the-muffin-man

Sorry to be the bearer of bad news, but once an IPA is in place then you're stuck with it I'm afraid.

Make sure you have allowed for everything you can claim for on your SoA though, as the allowances for certain items are quite generous so the IPA shouldn't leave you living on the breadline each month. If in doubt post your SoA up on here.

IamSheb

Yeah I wondered if that might be the case. It's not so relevant to re-evaluate my IPA right now, as I'm only looking for work and the market is very tough right now - I'm thinking for the future.. Doesn't seem worth going all out to get a good job until the IPA lapses though, unless as you said I earn a modest amount more and then agree a new expendature level to make it actually worth doing.

Trom

I may be wrong and someone correct me if so, but I was under the impression the IPA doesn't get updated post discharge?

I'm in a similar dilemma where there's a better position coming up at work and I'm planning on passing because the extra stress would not be worth the extra £30 a month (£200 if no IPA). I guess it depends on what the better job would do for you. In my case I'm weighing the pros and cons for my CV as well as my wallet. It might seem pointless now, but it won't be in 3 years when an even better job could come along.

sieve

Trom wrote: »

I may be wrong and someone correct me if so, but I was under the impression the IPA doesn't get updated post discharge?

It does - you have to keep the OR posted of any change of income while it is in place, even after discharge, so they can keep the IPA adjusted accordingly.

Sorry

debtinfo

Yep, as sieve says the IPA can be adjusted at anytime during the bankruptcy with the agreement of both parties, up if you earn more, down if you earn less, of if your expenses change considerably. This is why they prefer to do them rather than IPO's which are made by the courts and so if any altering needs to be done you have to go back to court

IamSheb

Well he key word there is 'agreement'.. what if I don't agree after I've been discharged.

The paperwork I have says 'we're going to do horrible things to you if you mess around with the IPA during your bankruptcy' (more or less) but it doesn't say what happens after... anyone know?


(as a sidenote the really annoying thing about this is i went all out keeping my job when i went BR, and my friend who didn't (he went directly to the dole office) has no IPA and can start work as soon as released on any amount, no problem... ! sigh.. !

the-muffin-man

Re getting a better job and more wages - even with an IPO, surely its better to keep 30% of something than earn less and have no extra???

... anyone know?

If you don't co-operate it becomes an Income Payments Order which is enforced by the Courts - so they have you by the dangly things between your legs then!!

Trom

the-muffin-man wrote: »

Re getting a better job and more wages - even with an IPO, surely its better to keep 30% of something than earn less and have no extra???

Better paying job usually = more responsibility, stress, less flexible leave etc. It might not be something you're willing to take on for an extra £30. Assuming you are already on a reasonable salary and not struggling of course.

Sheb, think a bit ahead I'd say. Your friend may be laughing now, but what's he going to do about that 3 year gap on his CV when he will need the job later? The point of BR is rebuilding your life, not sitting on your !!! waiting to get into the same mess again in 3 years.

the-muffin-man

But it isn't just £30, the amount the OR takes works on a sliding scale...

http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm

Currently the guidance given to official receivers about how much money they should take under an IPA/IPO is that if a bankrupt has more than £100 per month disposable income he/she will be expected to pay a percentage of that under an income payments agreement for three years. If he/she has less than £100 per month disposable income he/she will not be expected to pay anything under an income payments agreement. The percentages work on a sliding scale, according to the amount of disposable income, as follows:

£100 to £240 - 50%

£250 to £340 - 60%

£350 to £490 - 66%

£500 to £600 - 70%

Trom

the-muffin-man wrote: »

But it isn't just £30, the amount the OR takes works on a sliding scale...

How can you know how a pay rise would work out for me without seeing my SOA? Maybe I was a bit confusing in my post, but in any case, some people don't think additional responsibility is worth a bit of extra money a month, whatever the amount. It's a lifestyle choice.