IPO'S - Can they go up?

aero1

Hi there - and apologies if this has already been asked a million times!

What happens if you are discharged from bankruptcy, the IPO still has some time to run, and your salary inceases? Or you sell your house and make some money?? Does the OR still need to be notified as its outside the bankruptcy? Because in effect, if income does go up, but so does the payment order, how does anyone have a chance to start finally saving etc and moving on?

Just preparing for maybe a longer time of poorness than expected!

Many Thanks

maxmycardagain

yes up or down

IF

Hi aero1, Your IPO/IPA runs for 36 months from when you signed your agreement. You have 21 days to notify your OR of 'any' changes until your IPA finishes. And as Max says your wage could go down too so works both ways x

aero1

thanks both of you, thats cleared up the salary side

Any idea on what happens if you sell your house though and make a bit of profit (I'm talking 3 to 5k here - not a huge amount).

Are you allowed to keep this for a deposit or would it all go to the OR?

I dont mean that to sound greedy - I just want to know if it makes sense to sell or not.

Thanks again!

aero1

oh, and obviously the deposit would be sitting there for some time!

Cheers!

script

I am no expert - but I've seen similar questions to yours.

But please do get a second opinion.

As it's an Income Payment Agreement (or Order) - the house "equity" is a safe - as its not an income. And you've received it after your Bankruptcy.

The only "snag" could be if the "equity" creates an income - i.e. it earns interest in a savings account.

However, as the return on savings is very low - I doubt you'll have anything to worry about.

It would easily be offset against increased living costs.

aero1

Thanks Script thats brilliant, thanks for the info