IPA and college

the_bright_side

If I do decide to go Bankrupt I will be in a self employed for roughly the first 6 months of the Bankruptcy (assuming I will get discharge after 12 months). The remaining 6 months I will be attending college (1 year course)

I assume I will have to enter into an IPA for the bankruptcy period, will the IPA amount change when I start college?

Also I am unsure how it works if you are at college / unemployed before your discharged will I have to enter into a new IPA when I have finished college and start work which could be 12 months post discharge?

JCS1

You would notify the OR of any changes of income, etc, within 21 days. So, assume you get an IPA, you would pay that for 6 months. Then probably freeze for the year your at college, then payments would re-commenced when your circumstances changed again (assuming you would have no income whilst at college).

The IPA would be suspended when you were at college, but these suspended months still count towards the 36 months,

alastairq

that is...as JCS1 says...assuming you get an IPA...based on a surplus of income over expenditure.

If, whilst working, you demonstrate you don't earn enough to generate much, if any, surplus in a month, you may not get an IPA. [Your income tax for the year goes into the BR]...which means.....after discharge, all clear.

the_bright_side

Thank you for your help

So if I don’t get an IPA in the year of my bankruptcy, because I am at college, then gain employment after my discharge, will they then ask for an IPA

alastairq

the_bright_side wrote: »

Thank you for your help

So if I don’t get an IPA in the year of my bankruptcy, because I am at college, then gain employment after my discharge, will they then ask for an IPA

The way it works is.....once BR, your income will be notified to the OR....

who then examines your SOA.

If no surplus on your SOA ..[or...very little...usually sub-£90 or so, but not set in stone]...then no IPA will be asked for. [it is an agreement, so you can negotiate with the OR if you don't agree with the OR's findings]

In that case... at AD, after 12 months [or ED].....you will not have an IPA imposed.

The discharge date is effectively the cut-off point for the OR to request an IPA...which is why, if ED is considered, the OR requests another updated SOA .

I believe the OR does have the power to impose an IPO....once Discharge has been granted.....if it is subsequently discovered a BR has misled the OR.....


so..all in all, unless an IPA based upon surplus income is initiated once BR....then once discharged, the OR has no further interest in your subsequent income....

the_bright_side

Thank you.

I am trying to plan ahead and see when is best for me to go college.