IPA Advice

delphe

Hi Folks,

I was given an IPA in Sept 2007 and discharged from bankrupcy a few months later. I do remember that they did not ask me to start making payments until a good few months after I signed the form originally and that lead to a delay in the first payment being made - at the time I was quite happy about this.

Anyway, my circumstances changed recently and as a result of a change in circumstances my IPA was "deferred" and my i/e form resubmitted.

Having now been reassessed my IPA has been increased (this was expected and I am happy with the amount that I need to pay per month) but the IPA is due to resume in December 2009 for a further 16 months.

In short I am wondering if the OR can force me to make payments after Sept 2010 which will be more than 3 years. If I make payments for 16 months then the IPA will not expire until March 2011.

Having looked at the guidance it states that an "IPA will last for 3 years (36 payments)"

is it 3 years OR 36 payments from the date originally signed
is it 3 years or 36 payments from the date when payments are commenced

Thanks

CG77

Hi delphe,

In short, it's the latter. The IPA lasts for 36 months from the first payment. If there have been any months where the IPA has been 'suspended' due to you being assessed as unable to pay for a period of time through a decrease in income, then these months count towards the 36.

HTH

CG. x

fermi

In law an IPA can run for a "period of three years beginning with the date on which the agreement is made".

Define that how you will. :rolleyes: