can I pay off my IPA with family help?

kingdan

Hi guys,

I have recently told my family about my bankruptcy and I told them I am on £90 IPA and my parents and brother asked if they can help me to clear the IPA in one go since they have some saving and the IPA amount isn't that much. I am 4 months into the 36 months so I still have to pay in total £2880.

I personal don't know if it is allowed.

please advise

thanks

sniggings

trouble is the offer may not stop the IPA, more than likely if the offer was accepted they would just set the payment to £0 for the next 3 years, you would still be under the IPA and have to keep the OR informed of your income and expenses.

No harm though putting this to your OR as they do have the power to stop an IPA short of the 3 years but it's not the norm.

Just make it very clear, that the gift of money is for the IPA and will not be given if your offer is turned down, last thing you want is the OR classing this gift as income, as they could if you say, my friend is giving me £90 each month, it can them be seem as income, unlikely you would get an OR who would do that, but best to know what you're walking into, they can only say no, if they do, then just use the gift each month to pay the IPA, you never know you might be lucky and the IPA is totally cancelled.

dojoman

Have a look at post number 1, their IPA was ended a year early due to it being paid off, ask your OR what the outcome would be if you did the same.

https://forums.moneysavingexpert.com/discussion/4180169

alastairq

so I still have to pay in total £2880.

This is not a figure set-in-stone.

Remember, unlike other forms of debt remedy, a surplus-based IPA in a BR can be varied, up, down or brought to zero altogether...should the circumstances of the BR person change during that period.


So, if you undergo redundancy, for example, your surplus would fall to zero, and the IPA would be suspended, with each month counting towards the 3 years!

I suggest 'making an offer' to the OR rather than calculating what you may pay at your current figures?

redskyatnight_2

I would err on the side of caution with this. I would worry about the OR taking the lot off me, to pay some to the creditors, and still making me pay £90 a month for the 3 years.

If your family members can 'spare' nearly three grand, maybe they could give you some cash to keep at home for when you run short? Rather than it being offered to the OR with the risk that he may take it all and still make you pay the £90 a month IPA for 3 years.

Just an idea.

fermi

redskyatnight wrote: »

I would err on the side of caution with this. I would worry about the OR taking the lot off me, to pay some to the creditors, and still making me pay £90 a month for the 3 years.

If your family members can 'spare' nearly three grand, maybe they could give you some cash to keep at home for when you run short? Rather than it being offered to the OR with the risk that he may take it all and still make you pay the £90 a month IPA for 3 years.

Just an idea.

If it's the relatives' money then the OR cannot touch it.

And if the OR accepts a sum in settlement of the IPA and confirms that in writing, then they cannot then come back and reinstate the IPA.

alastairq

And if the OR accepts a sum in settlement of the IPA and confirms that in writing,

Hi fermi..quick question.....was I right in my assertion that an 'offer' should be made first...but not necessarily what the OP calculated as 'owing ' on the IPA if circumstances did not change?

redskyatnight_2

fermi wrote: »

If it's the relatives' money then the OR cannot touch it.

And if the OR accepts a sum in settlement of the IPA and confirms that in writing, then they cannot then come back and reinstate the IPA.

I would agree that if the OR agrees to a one-off payment, that he couldn't/wouldn't go back on it, but surely if the OP's relatives give him the money, then it's no longer theirs???

This seems like a very tricky one to me, and I personally wouldn't want the OR knowing I had extra money available.

Not sure how they will view other people paying off the IPA 'debt' either.

The best way forward is of course, to contact the OR, and tell him that someone has offered to pay a lump sum for you; but I personally, can't see the OR going for it. This isn't the idea of the IPA.

The IPA is already set up for him to pay £90 a month for 36 months, with it only being reviewed if his monthly income changed.

But it is worth asking the OR I guess...

fermi

redskyatnight wrote: »

I would agree that if the OR agrees to a one-off payment, that he couldn't/wouldn't go back on it, but surely if the OP's relatives give him the money, then it's no longer theirs???

Assuming undischarged, then the OP would have to explain where the funds were coming from and that they were from a third party. Money belonging to someone else is not claimable as an asset by the OR.

If discharged, the you can acquire all the assets you like as long as they were acquired post discharge. The OR would have no claim on them.

It's not "tricky" in the slightest.

fermi

alastairq wrote: »

Hi fermi..quick question.....was I right in my assertion that an 'offer' should be made first...but not necessarily what the OP calculated as 'owing ' on the IPA if circumstances did not change?

You could certainly try a lower offer. I'm pretty sure I recall an example where that was done and accepted?

If they turn it down then they run the risk of the OP being made redundant tomorrow or being unable to work, which would result in the OR getting a big fat zero for the rest of the IPA period. As such, they may see the benefit of a reduced offer paid all paid now.

redskyatnight_2

fermi wrote: »

Assuming undischarged, then the OP would have to explain where the funds were coming from and that they were from a third party. Money belonging to someone else is not claimable as an asset by the OR.

If discharged, the you can acquire all the assets you like as long as they were acquired post discharge. The OR would have no claim on them.

It's not "tricky" in the slightest.

It is a bit, because there isn't a 'set' amount, and the OR may take a dim view of someone paying it off for you. Even if they don't take a dim view of it, it's not the best idea, because if the OP's income drops, the amount could have been reduced. So you could potentially be throwing a lot of money away. Far better to accept the relatives money and set it aside, for when you're short. But the best idea overall is to ask the OR.