Potential IPA increase after new job

nickylabron

Hi, I got a part answer for this question which was very helpful, juts also wondering about the second part in preparation for my discussions with the OR. Thanks in advance

My partner had to close her business a few years back and had to file for bankruptcy. This went through relatively quickly as the official receiver could clearly see that it was through no fault of her own and she didn't misuse any of the businesses money.
As part of the settlement, she did an income/expenditure report based on the job she got after the business closed, this allowed for £50 a month for 3 years.
She's just got a new job, much better paid. Per month, she'll be around £400 better off. The receivers have written to her saying they know she's finished in her old job, and can we send them the new job details and salary.

As the new job is far away, and because her clapped out old car finally packed in recently, she had no option but to get a new one. As finance wasn't available due to the bankruptcy, her only option was to borrow £6k off her brother and pay him back as much as she can afford. If they are going to ask for more money, can this be used to our advantage?
The car was bought after discharge, only a few weeks ago because the old one completely went. She also needs it to get to the new job and pick her nephews up, hence why her brother lent her the money. She's agreed to pay him £300 a month to pay it back, this swallows a great proportion of her extra income per month but she had to do it, she needed a car for work and her nephews, she couldn't get credit anywhere else because of the bankruptcy and after the last car blew up on the M4 whilst she had her nephews inside her brother has insisted that she buy a safe care, so it wasn't that cheap.

Are all these valid reasons for the official receiver? Also, as luck wouldn't have it, the leak in the kitchen got worse and the roof was close to coming down, so she had to borrow money off her grandparents to fix it, it cost £1500. She has to pay this back monthly too, will they accept this as an expenditure? Apart from this the house needs help all over the place, front door broken etc etc, is it just everyday expenses the Official receiver will accept or do they understand that other things come up like this?

fermi

I'm in two minds on what the OR might think of that, so I'll try to see if someone like debt doctor has an opinion.

Flyright

The OR may not allow for a payment to a family member when such monies could be claimed in an IPA.

debt_doctor

Hi,

Thanks for the PM Fermi.

An interesting situation.

Firstly, you have a duty to inform of the change in income as I'm sure you are aware.

If I were representing your partner as a client then I would first look at the original IPA to see if I could pack out the expenditure in places, and claim more allowance, which would be potentially far more credible an argument than favouring a new creditor over existing bankruptcy creditors.
Secondly, I would put the argument that no car would mean no job which would mean no IPA, so claim that a monthly amount to pay for such a car is legitimate.
I would start at claiming the current loan repayment (not expecting to have a chance of acceptance) but would be looking to agree a negotiation to half the loan repayment.
I don't believe for a moment that the IS would accept getting nothing from an increase of income of £400 pm, - but to get an extra £150 pm, by agreement may well appeal more than a potential battle in court for an IPO.

DD

nickylabron

thank you all, I really appreciate your help and advice