SOA Help

Action_Jackson

Have you looked here for the expenditure guidelines:

http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part7/Annex%20D.htm

Those figures are just guidelines, not allowances, but at least you'll get an idea of what they consider to be reasonable.

Also, the IPA is supposed to leave you with a reasonable standard of living - the OR will not be expecting you to wear rags and live on bread and water (although some people on these forums might ). A bar of chocolate and even the odd drink isn't going to be completely out of the question.

Also, an IPA is up for negotiation (it's an IPAgreement ) - if you feel you haven't been left with enough money, then don't sign it and discuss with the OR. The OR will only go for a court enforced IPA (an IPO) if you are obviously procrastinating and refusing to sign even though the figures are reasonable.

An IPA is only based on income - so, if after discharge in 12 months, even if the IPA is still going and you received a cash windfall (gift, lottery win etc), that can't be used to increase your IPA.

If you have no surplus during the 12 month BR period, an IPA cannot be started, and you will never get one because an IPA must be put in place before discharge.

Action_Jackson

zoeeleanor wrote: »

I have been bankrupt for 2 months and have just been asked to pay £533 from my income for IPA plus £366 from NT tax code. i have refused to sign. They would not allow any expenses for social, alcohol, pets, definitely not holidays, no satellite TV, no broadband, no pet insurance, no money for supporting husband ( he is unable to work due to ill health) no diesel for trips out etc etc. So basically, I have to get rid of my pets, shoot my husband and eat rice for 3 years. I cannot find any legislation that says the IPA/IPO has to last for 3 years ...this is a maximum in the legislation. Discharge is described as being released from bankruptcy debt so if you are discharged after a year, why must you continue to pay for a further 2 years.

I would be interested to hear from anyone who challenged an IPA or has any case law!

If you refuse to sign or uphold an IPA, then the OR has the option to go to Court for an IPO. You would be given the chance to put your side of the story to the Court, so there is no guarantee that the OR will get the figures they want upheld.

Under BR you are not allowed to keep money for social activities, alcohol, non-basic holidays etc. but an IPA is supposed to leave you with a reasonable standard of living, things like broadband and mobiles are now regarded as reasonable living expenses, as is reasonable housekeeping money, so there's no reason why you can't have those. Sounds like you need to go through your figures again and negotiate with the OR.

One thing, the NT tax code IPA is merely taking income tax money that would have been automatically removed from your pay packet, so you won't actually be losing £366, as under normal circumstances it would have gone straight to HMRC.

Anondebtadvisor

zoeeleanor wrote: »

I have been bankrupt for 2 months and have just been asked to pay £533 from my income for IPA plus £366 from NT tax code. i have refused to sign. They would not allow any expenses for social, alcohol, pets, definitely not holidays, no satellite TV, no broadband, no pet insurance, no money for supporting husband ( he is unable to work due to ill health) no diesel for trips out etc etc. So basically, I have to get rid of my pets, shoot my husband and eat rice for 3 years. I cannot find any legislation that says the IPA/IPO has to last for 3 years ...this is a maximum in the legislation. Discharge is described as being released from bankruptcy debt so if you are discharged after a year, why must you continue to pay for a further 2 years.

I would be interested to hear from anyone who challenged an IPA or has any case law!

Did you seek any advice prior to declaring yourself bankrupt?

zoeeleanor

Yes - I went to stepchange (i think thats what theyre called!)