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Sliding scale of IPA's
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Questionner
Posts: 42 Forumite
Really sorry if this is a daft question but are the IPA percentages on a sliding scale
e.g.
If I had a surplus of £475 66% of this is £313.54, but if I had a surplus of £500 the payment could be £350 - this shows I have and additional £25 surplus but pay £36.50 more ?
I know this is a theroretical question and I'm only talking small amounts, but wondered if it was done like tax 22% on the first £x and then 40% on the rest?
Thanks!
:question:
e.g.
If I had a surplus of £475 66% of this is £313.54, but if I had a surplus of £500 the payment could be £350 - this shows I have and additional £25 surplus but pay £36.50 more ?
I know this is a theroretical question and I'm only talking small amounts, but wondered if it was done like tax 22% on the first £x and then 40% on the rest?
Thanks!
:question:
0
Comments
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No you are right the first time it is a percentage of the whole amount and this does throw up slight discrepencies around the borders of the bandsHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
The percentage the OR can take for an IPA depends upon the excess:
Between £100 and £249 = 50%
Between £250 and £349 = 60%
Between £350 and £499 = 66%
£500 or more = 70%
70% is the max the OR can take so even if you have £2000 DI the OR can only take 70%.:pB&SC No. 298
Life`s Tragedy is that we get OLD too soon
and WISE too late!0 -
Thanks - just a bit of detail I wanted to check out of curiosity!0
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Sorry to jump in, but ive just had an ipa set up for £62 a month, gonna be gettin a pay rise at end of month which will give me an extra £300 a month, am I right in thinkin th OR can only take half of this on top of what im already payin. ?
Thanks0 -
Sorry to jump in, but ive just had an ipa set up for £62 a month, gonna be gettin a pay rise at end of month which will give me an extra £300 a month, am I right in thinkin th OR can only take half of this on top of what im already payin. ?
Thanks
So are you saying you will have £300 extra surplus cash?:pB&SC No. 298
Life`s Tragedy is that we get OLD too soon
and WISE too late!0 -
Yeah will have 300 surplus.0
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cheers, just wanted to make sure they werent gonna take it all.
Thanks0
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