IPA Question

WhoThrewThat

I am about to start an IPA of only £64 a month. After Christmas my SoA is going to change allot and may end up not being enough to pay the IPA. I know they will reduce it if my surplus does reduce but if they do this is the IPA still in place? I mean if its £0 and then a few months later I get discharge will that be the end of it or can they resurrect an IPA that used to be in place?

sealsandsqueals

Thanks for asking this WhoThrewThat as I've been meaning to ask this myself. I'm going to be starting a (quite large!) IPA soon but my circumstances may change next year and I wouldn't be paying one at all, if I'm not paying at time at the time of ED, will that be the end of it or can it come back until the end of the three year period.

With quite a hefty IPA and hopes of starting a family this could make a huge difference to my circumstances. I totally agree with IPAs and am happy to pay mine but just want to know the facts in advance as need to be prepared.

Not intending to hijack your post, hoping to add to it!!

WhoThrewThat

No worries Seals. Hopefully someone will be along soon to help us out

Doucam

As I understand it once you have an IPA in place it is in place for full 3 years - so if you have a period of not being able to pay it back for a few months but then get more money then it is restarted up until the end of the 3 years.

They don't extend it for the time it hasn't been paid it is always up at the end of the 3 years after it started.

We didn't get an IPA so I may be talking rubbish though so hopefully someone will be along soon to confirm if I am wrong or right!

IF

That’s how I understand it too Doucam

Taken from pdf guide

If your trustee is satisfied that an IPAor IPO is no longer appropriate (for example because you have lost your job or your income has dropped considerably) your trustee will inform you that payments will be suspended or reduced until the situation improves. If this happens, you must tell your trustee if things improve before the term of the IPAor IPO ends. After suspending payments, if you can at any time restart the payments or increase them, the IPAor IPO will continue from that point. However, the arrangement or order will end on the original agreed date.

IPO / IPA (Income Payment Orders and Income Payment Agreements) (IS)

sealsandsqueals

Thanks everyone, that's what I thought. Nice to know for sure.