Income Payment Agreements/Orders info and calculator

North_East_Derbyshire_CAB

Hi All,

Since the December 2010 changes in IPAs/IPOs we and our clients have faced a number of issues surrounding Income Payment Agreements/Orders including challenges at County Court.

As a result, we felt that we needed to develop a new section on our website about IPAs/IPOs to assist both advisers and people currently bankrupt or those considering bankruptcy as a remedy for dealing with their debts.

http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp

We have now added a section as above which includes a guide Bankruptcy Payment Order Calculator.

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcypoc.asp

We hope this new resource will help and assist people in bankruptcy and would appreciate any feedback from the good posters on here either positive or negative as we intend to deveop the system further for the benefit of those facing debt and financial problems.

NEDCAB

fermi

Excellent work. Thanks very much for that.

I shall add those links to the main sticky later.

IF

Brilliant NED CAB :beer:

North_East_Derbyshire_CAB

Hi

Just to add

We are also working on a complementary resource to make people aware that IPA / IPOs can be potentially challenged (and how) if deemed unreasonable both at the O/R office and at county court level.

IPAs & IPOs are a very important area with regard to the bankruptcy procedure, always make sure you fully understand them and your rights.

Note - we have successfully challenged the O/R at both their office and county court level with regard to IPA / IPO proposals.

NEDCAB

confuzzled2012

hi, i'm in the process of saving up my bankruptcy fees, are the figures in this considered reasonable and ok to use on my statement of affairs? I am a single parent with 2 children. thanks

fermi

Figure quoted are guidelines ones for use by the OR when trying to work out what represents reasonable expenditure.

They are not "allowances" in any shape or form, so you should not treat them as such.

In fact, if you put those amounts on your SOA when it's not actually what you spend, then it is going to ring alarm bells with the examiner and they are then going to go over your SOA with a fine tooth comb and ask for proof for absolutely everything. People have copied the figures number for number on to their SOA in the past and got themselves in a deep hole by doing that.

The figures are helpful, as they represent average household spending across the UK. So they may make you realise that you are underspending excessively in some areas. For example some household in debt have had to cut unreasonably far back on food and other bill in order to make ends meet and pay the monthly debts. Conversely, don't teat the figures as an upper limit either. If you genuinely and for good reason spend more, then put what you do spend and offer proof if requested.

confuzzled2012

thanks very much, i've got quite a few months to sort it yet but trying to gather all my information now and make the necessary cut backs, i've started shopping weekly instead of every few days and noticed a massive difference.

dojoman

Thanks NED, great work:T:T:T

North_East_Derbyshire_CAB

Hi all

Thank you for the feedback guys it is more than appreciated, its all positive at the moment, both from on here and elsewhere.

Keep the feedback coming if you can, positive or negative, also any suggestions as we will act on this if appropriate.

Good advice from fermi.

As many of you will already know IPAs / IPAs can be looked at with regard to a review & variation usually if there has been a change in circumstances, for those who are not aware then they may find this post useful.

Due a number of reasons many people are now finding themselves facing a reduction in their overall disposable income and this type of situation could be one reason for an IPA / IPO review / variation as would also be the case if a bankrupts disposable income was deemed to have increased.

There may also be situations where someone who is bankrupt had agreed an IPA / IPO amount at the start of their bankruptcy that they later found or feel may not have been a true picture or reflection on their actual finances & expenditure etc.

If in any doubt on any of above you should always get proffessional advice.

As mentioned in one of our previous posts we are currently working on a complemantary resource to help people understand IPAs / IPOs including the possibilty of challenging proposals if they seem unreasonable, this will include standard letters which will also cover reviews & variations.

There is very useful information available from the Insolvency Service Technical Manual on IPA / IPO reviews and variation which can be viewed via the link below -

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part7/part_7.htm

Before making any decisions always get full independent advice on bankruptcy and all other options / solutions.

NED-CAB

fermi

To link........

NewChapter_2

This is so helpful thank you!