Just noticed this on my IPA form

wherediditallgo

Until this morning, I thought that you had to inform the OR of any change of circumstances within 21 days if you've been given an IPA. However, it appears that increases in income may not be included in that. I've just re-read the bottom of my IPA agreement (I signed it in a medication haze), which says:

"Until I am discharged from bankruptcy, I shall notify the Official Receiver or other trustee of any increase in my income within 21 days of becoming aware of the increase. I understand that the Official Receiver or trustee may claim any increase in income for the benefit of my creditors. I acknowledge that my obligation to make payments under this agreement does not end when I am discharged from bankruptcy and that failure to make payments can affect the date upon which I am discharged."

So I understand that, regardless of when I'm discharged, I'm committed to paying my IPA for the 3 years, & that's fine. However, I'm wondering about the definition of 'income'. For instance, if I got my bank charges claim through after my discharge (let's say for argument's sake that I get an early discharge), that isn't income, it's a one-off payment as a refund of money owed to me. As the IPA only calls for me to advise of increases in income until I am discharged from BR, would I have to declare it if I'd already been discharged? The same could apply to a lottery win post discharge, as that's not income it's an increased amount of money available to me. And what would happen if I changed my job say 6 months after discharge for one with increased income?

I know what it says on various websites (let the OR know of any changes of circumstances within 21 days), but that isn't what's on the agreement that you sign. I'm now wondering where someone would stand if they argued that a £5k win on the horses after discharge but during the course of the IPA was theirs & they weren't obliged to declare it to the OR because their IPA had the same clause as mine on it.

Knowing me, I'll be on the phone to the OR if I do come into money as I'd be scared witless to touch it without their say-so. What do you all think?

Remmer

As far as a refund of bank charges is concerned, forget it. On BR your bank accounts became the property of the OR. Any refund belongs to him. You are obliged to inform the OR of any change in income for the duration of the IPA. Date of discharge is irrelevant I'm afraid

NekoZombie

Hi wdiag

My IPA form said exactly the same thing. I can't help but wonder, when they refer to income, if they also mean any windfalls (which repayment of bank charges, for example) would be, along with a lottery win. It'd be good to know one way or the other.

They're being very slow at the OR's office. I'm actually beginning to feel very squiggly (in a bad way) about my IPA.

Remmer

Windfalls after discharge are normally ok, however,say you won the lottery and were able to give up work, then thats different. The OR would def come after it. Anything large enough to replace your current income would be at risk

NekoZombie

Remmer wrote: »

Windfalls after discharge are normally ok, however,say you won the lottery and were able to give up work, then thats different. The OR would def come after it. Anything large enough to replace your current income would be at risk

I assume, in that instance, they could take up to the maximum that you went down for, rather than the whole amount of your winnings.

Remmer

Yes but probably double the amount you owed on BR by the time all the costs are added on

fermi

WDIAG,

The question of IPA's and changes in income/windfalls after discharge always seems to be confused.

Mostly this seems to be the fault of the OR not spelling out your responsibilities clearly enough.

Although I don't know the answer for certain, this thread is interesting reading on both issues.

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=12703

Hope that doesn't muddy the water further.

wherediditallgo

It is odd, isn't it? I know what I'm like - if I somehow get £5k, I'd probably be too frightened to spend it without speaking to the OR even after discharge, but the first line of that clause says that I only have to inform them of increases in income until my discharge. £5k obviously isn't enough to give up work for good & neither is £500k (especially if you need to buy a home), but it's still a sizeable amount & it's odd that the OR doesn't apparently want to know about increases in income after discharge according to the IPA form they send you to sign.

I'm glad I kept a copy of the form before sending the original off, but I wonder where someone would stand if they came into some money after discharge, & decided not to tell the OR because of this clause. If I did get £500k after discharge, I'd probably be offering to settle all my debts with the OR (especially if there were a few more noughts involved ), but this clause makes me wonder if I would actually be expected to even let them know about it. I'm totally .