salary increase and settling an IPA??

Wallz

Hi all,

i am currently due for bankruptcy discharge in June (not long now!!) but stuck in an IPA until August 2013. However, i am due to start a new job in 5 weeks where the salary is a considerable increase (double my current) that will give me much more 'spare cash'. basically i will be working on and off out of the country for up to 9 months of the year so the rise is due to having to work away from home and family for extended periods. i am only doing this as a means to improve our quality of life. however, im very wary that by doing so i could lose all my extra income through the IPA and negate all benefit of going out in the first place. during the months i am home i will be back to wage similar to my current, so my income will actually fluctuate throughout the year. i assume i would need reassessing each time it changes.

is there a way i can agree to settle the IPA through my extra income? surely the total paid in the IPA does not exceed the overall value of my bankruptcy? is there such a thing as an IPA settlement figure?? or, and i know its a risk, do i keep quiet and get a lump sum then offer it to Moonbeever? what would be the repercussions if i did this and they asked for a financial review while i was away. do they even ask for random financial reviews? im worried about ringing the OR and setting off alarm bells before this all even happens.

i really need to do this job as its an opportunity as well as financial reward but mainly for the money, i dont want to leave my family for long periods if i dont gain from it.

any help is appreciated, maybe someone has been in a similar scenario?

many thanks in advance.

kepar

I have often wondered the same myself, as my wife has got an IPA. But like her your IPA will have been set up under the old rules, so the maximum they can take of your spare is 70%. I know that means you are still giving a large proportion, but you will have money left to make it worthwhile.
We look at her IPA and it is now in single figure payments and know by the end of the year we are going to be £400 a month better off. Because of the 70% rule we have had over £150 a month spare, and have never been subject to a review. But I suppose you never know.

My wife also changed jobs during this time and reduced her hours to maintain the same income, so not only will we get the extra but she can increase her hours to get extra that way too. Her wages fluctuate slightly depending on her shifts, but the OR stressed at the beginning he was only interested if her take home pay remained higher than agreed for at least 4 months. Maybe yours will be the same.

As to regards paying it off, I am sure I read on here about two years ago, someone was well into there last year of paying and managed to reach a settlement. But in your case you have, over two years to go, so what monthly figure would you use.

Also look long term , how much better off will you and your family be when you have finished paying.

Not letting the OR know of any changes can cause a huge problem, you have to let them know of any changes within 28 days.

Radiantsoul

If you are capable of repaying all the debt and costs incurred in your bankruptcy then you may be able to get it annulled.

dojoman

The only way you could get it annulled is to pay the entire amount you owed, plus all the costs incurred and the costs would be substantial. You could not get it annulled by paying installments. If you did not inform the receiver within 21 days of your change of circumstance then you are in breach of your BR and could land yourself in serious trouble.

MTDancer

dojoman, what do you mean by installments? Do you just mean the amount paid into the IPA monthly?

NekoZombie

There's no such thing as an IPA settlement - as Dojo says, the only way you could settle up is to pay off your total bankruptcy plus costs incurred by the courts and OR. Alternatively, you can carry on with your IPA, but you will need to notify the OR of your changes in circumstance.

mel12

dojoman, what do you mean by installments? Do you just mean the amount paid into the IPA monthly?

You couldn't get it annulled by paying extra monthly, it would have to be a lump sum. Its happens rarely (eg if someone came into a large inheritance or won the lottery), partly because the ORs fees are so high as well to add to the debt.