Urgent news on IPA's - Changes for BRs after 01/12/2010

BB&B

When an IPA is calculated it is based on regular income, if you did overtime that was not guaranteed longer term, or regular in nature the OR would not touch it.

So it is very possible to earn more on an irregular basis, and in your case as the overtime is not long term the OR would let you keep it, and probably would not even be interested in you declaring it.

Tim

plap

Hi Guys,
Having a few problems re this change at the moment. Went for my interview with the OR in mid November and recieved an IPA with a monthly payment of £85.00 which was about 75% of my surplus. A few days later due to changes in circumstance our council tax bill increased ( to pay off an overpayment of housing benefit). I Contacted the OR to explain this change and I have now received a new IPA with a revised amount of £125.00.
Could I argue this as the original was only for £85.00 or not?
Thanks

BB&B

Yes

It would pay to challenge on the grounds that you know what the changes are!!

Calculation of contribution to be claimed under an IPA or lPO excluding the retention of any surplus.

In all cases where the initial assessment of whether or not an lPA/lPO is appropriate takes place on or after 1st December 2010, the full amount of surplus income if above £20 should be sought by way of monthly payments under an lPA (or and lPO if an IPA cannot be agreed). This includes any cases which were initially assessed at nil but in which a further assessment is made, for example as part of the early discharge process.


Application of new minima to existing IPA/lPOs reviewed following a change in circumstances.

Except with regard to applying the lower minima (see below) the basis of any re-assessment of existing IPA/lPOs as at 1st December 2010 will be that under which it was first agreed ie the sliding scale for the retention of the surplus be retained.

If upon review the amount available falls below £50 but is above £20 that amount will be taken and the IPA amended accordingly.

If the amount of the monthly IPA payment was previously set at the minimum amount of £50, when calculating the reduced amount the bankrupt can now afford, the bankrupt should be allowed to retain the full surplus (£50) allowed originally. For example if originally the surplus was £100, they would have retained £50 and the IPA would also be £50. If at the review the surplus is now £80, the IPA should be adjusted to £30 to allow them to retain the £50 surplus originally agreed.

If the monthly amount collected prior to the IPA review was greater than £50 the existing provisions apply in that the percentage scale of the amount to be collected should be applied in the same way as when the IPA was originally calculated, using the 50-70% contribution rate. However the amount of the surplus retained by the bankrupt should not fall below £50. For example, if upon review there is a surplus of £70, an lPA or £20 should be sought and the bankrupt be allowed to retain £50.

From the notification sent to all OR on 2nd December 2010

Tim

plap

I Think I will challenge it. What is likely to happen if I refuse to sign the revised agreement and offer to pay the original amount?

debtinfo

To BB&B and plap, there is no point challanging on the grounds BB&B has put up if you have not already started the IPA, if you have then the old rules should apply, if the IPA has not yet been signed by both sides then you are subject to the new rules

BB&B

Still worth the punt as the IPA was initially assessed prior to 1st December.

I agree about the 'signed' part, but that is where 'nothing asked' comes in during the transition period

Tim

debtinfo

true............

ani_26

Happy Xmas from the IS.

I'm now totally devasted again.I've received a ipoq this morning from the is, with 5 days remaining, to return the form to the office. I've read through this thread, and i'm just totally confused again. So obviously i went bankrupt before the 1st december, and i have'nt had an ipo in place. I guess they are ' running out ' of time, now, or have they waited until after the 1st december? I really don't know where to start filling in the form, as i've had no income other than benefits, whilst i've been off work for 10 weeks, now i'm back at work, awaiting payment, sometime next year, and as i'm self employed, they know its almost impossible to calculate my earnings, especially at this time of the year, i really am on the breadline. In fact, theres no money for bread at the moment.

I have'nt any surplus. Will i get penalised for having no surplus? for going bankrupt? I don't even have enough money to keep my car on the road, next month. Will i be penalised for not even having enough money to cover essential bills like rent? etc.

I realise i ' owe ' my creditors, but how do i pay creditors, when the bank account is bare. I despair. I've tried phoning them, but i doubt i'll be able to speak to anyone over the xmas period.

ani_26

alastairq wrote: »

IPA/IPO....


'agreement' and 'order'....


if 'agreement' cannot be achieve, twixt OR and BR, then technically, the OR will go to the Court for a decision...the Court will hear both arguments [OR & BR]...and make a decision....this is then 'binding' on both parties.

The problem for the OR is, firstly, funding the Court case...and secondly, if the Court lands more in favour of the BR, then it is possible they may order a lower payment than the OR wanted..

Jesus, this is the first mention i've had of ipa/ ipo, An order ? 90% of the way through my bankruptcy.

Is there really Life? after bankruptcy? I think not.

fermi

Is it just the IPOQ that you have been sent? What does any letter that came with it say?