What if you pay off your debt before the 36 months

Trom

I entered a competition the other day with generous prices I would not be able to keep :rolleyes: which got me thinking...

You go BR owing £20K
You enter into an IPA
Four months later you come into £25K somehow

Does the OR take what they need and let you have the rest, releasing you from the IPA? Would you also get early discharge? There must be people who ended up paying off the whole debt while BR somehow or at least while still within an IPA.

Holes_in_my_pocket

you can have bankruptcy annulled in you are lucky enough to win enough to pay debts off..

maxmycardagain

have a guess which is the likeliest

1. You keep the cash and keep paying the IPO
2. You lose the cash and keep paying the IPO
3. Nessie knocks your front door and hands you the leads to Shergar, who is being ridden by Lord Lucan

Trom

I'm going to go with the annulment option.

Tinytim

Trom wrote: »

I'm going to go with the annulment option.

Do remember that for an annulment you would have to repay all the debts, not just the value of the IPA/O

Trom

The IPA doesn't have a value, does it? It changes depending on your circumstances. Anyway, I don't personally expect to come into a large sum of money (or get a job that earns me enough to repay my debt in less than 3 years any time soon), but did genuinely wonder.

philnicandamy

Tinytim wrote: »

Do remember that for an annulment you would have to repay all the debts, not just the value of the IPA/O

and not forgetting....you would have to pay all the OR's costs & fees as well..

skylight

It should be impossible.

If you are able to repay all your debts under an IPA within the 36 months then BR was not the right thing for you in the first place.

Trom

Hey man, how the hell should I have known my uncle Tommy would die in a tragic accident leaving me a handy £25K after tax? (no offence to anyone who has an uncle called Tommy)

philnicandamy

Skylight is purely stating a FACT

skylight

If Uncle Tommy dies whilst you are BR, then that would have nothing to do with an IPA.

The inheritance would be regarded as an asset that would be taken in full, debts and OR fees deducted and you would be handed the rest back (if there is any).

If Uncle Tommy dies whilst you are still paying an IPA but you are now discharged, the money is yours to keep; unless you are earning money in interest from it then that income from the money is used towards your IPA calculation.

Poor Uncle Tommy. I think he should have taken his money to Thailand and spent it all on some pretty girls and sparkly gems whilst he still could.