Change of income after IPA issued?

Finallysorted

Hi all

I think my hours are about to be cut at work which would mean a substantial reduction in my income and would mean I would go well below what was agreed for my income/expenditure with my OR - if this happens do you think my IPA would or could be cancelled as I havent made any payment towards it yet and its due to start next month. Would I just need to inform my OR? I have a surplus of £150 pounds at the moment but would have a pay cut of alot more than that, possibly as much as £500
:eek:

tigerfeet2006

As soon as it is official and you know how much then let your OR know and they will o a review. I suspect it it will be suspended, all suspended months will count towards the 36 months.

Finallysorted

Thank you. So if the IPA is suspended for the duration of my bankruptcy - in that I am still working at this job on less hours therefore less money - does that mean the IPA will cease to exist once I am discharged or does the IPA run for 36 months regardless of whether I have paid anything into it for the year I am undischarged? Its just that I havent sent back the signed IPA agreement yet as only got it yesterday and heard about the possible cut in hours then too. What should I do for the best? Want to do the right thing :-)

PippaGirl_2

It runs for the 36 months if the IPA had been agreed so even after discharge you must tell your OR about any changes in income in case the IPA comes out of suspension and is activated again.

Finallysorted

Thanks Pippa - oh I thought that I only inform the OR of my earnings whilst I am undischarged? So because I have an IPA I have to keep them informed of all my income for the next 36 months??

I thought that once you are discharged the OR would have no more interest in what you earn and that if you have an IPA then that payment would remain the same for the rest of the 36 months? So why then would I need to keep them informed if I am on less money at the time of discharge or even lose my job?

Confused.com now...any advice greatly appreciated as its so not clear for newly bankrupt people like myself. Have no idea what I'd do without this forum, you are all so helpful :-)

PippaGirl_2

No, the IPA can change if your income increases or decreases during its term so you should inform them of any changes throughout the 36 months it runs. Any time your income stays under the threshold of needing to pay money to the OR you IPA would remain suspended but you still have to inform the OR each time there is a change for their records. Informing them of a change doesn't mean you have to pay, just that you need to keep the OR informed.

Finallysorted

Oh I see thanks again. I am a little disheartened to hear that as thought that once discharged I would be free to earn what I wanted without having to tell the OR. I know these debts are my responsibility but obviously going bankrupt I thought I could start afresh sooner than 36 months time, now it would seem that I am going to be watched on my earnings for the next 3 years! Does that mean I also have to tell them if I move house after being discharged?? Nothing like this was made clear to me by the OR, its not helpful really as had it not been for this forum I would have had no idea.....ok going to get out my copy of the IPA - guess I shoulda read it in detail before now :-/

PippaGirl_2

You'd have to tell the OR if you move house for their records anyway, but unless your incomings and outgoings were identical you would need to do a new SOA following your move too. Yes, an IPA is a blimming nuisance but the creditors do deserve something so I can see both sides. Technically the whole nightmare of BR can last up to 4 years if on an IPA depending on how quickly it is set up.

Finallysorted

Ah thanks Pippa - yes I know and understand that the creditors deserve something back its just frustrating for me as I obviously had the wrong information entirely! Oh well guess am in a much better position this way than still owing thousands....which I'd never have been able to repay.

So from when do I count the 6 years for the BR to come off my credit file? Is it once I've been discharged?

PippaGirl_2

Nope, it's from the day you are made BR

Finallysorted

I was told that should you have the money to pay off your IPA early - you could offer to settle it in full earlier than the 36 months? Hence why I thought the figure would stay the same once discharged? This was obviously not correct information then?