IPA Settlement.

wookie999

What happens if I receive a lump sum while I am paying an IPA or IPO?

You may be asked to make a one-off payment from the lump sum to cover the amount left to pay on the IPA or IPO. This can happen even if you are discharged from bankruptcy.

The amount claimed will vary, depending on whether you are discharged when you receive the lump sum and the time left to run on the IPA or IPO.


Hi
have taken this of IS website, has anyone ever paid off an IPA, with a lump sum? I am over a year into mine but would love to pay mine off early, if possilble, with hard saving in another year, maybe able to offer the last year in full.

Ineedaname

Personally, I would hang on to any savings you are able to make whilst paying an IPA. The debts are gone, you are contributing towards them within the law. Unless you had a lump sum that equalled the outstanding amount on the debts plus ORs fees then I wouldn't bother.

Be careful with the savings though if you are under the new more stringent rules for IPAs. Some ORs might see you being able to save additional to needs (i.e. saving towards annual car tax) as meaning you have more surplus available for the IPA.

curly04

i was dischared when i got my redundancy money, and they said i could pay my IPA early in full which i did

i then got a letter saying my case was closed and i did not have to inform them of any changes, and i got a job with a tiny pay rise and they weren't interested (i did call to check)

curly04

btw if i had got my redundancy before i was dischared they would have have all of it

GoingUnder

So, if you inherit some money after discharge they don't automatically take it? Is that correct?

I thought they could take it for the duration of the IPA?

JCS1

GoingUnder wrote: »

So, if you inherit some money after discharge they don't automatically take it? Is that correct?

I thought they could take it for the duration of the IPA?

For inheritance it depends on the date of death - if before discharge then the amount will go to the OR. If after discharge then any interest on the capital may be deemed to be income.

GoingUnder

Thank you for the clarity