Discharged Bankruptcy and possible future IPAs

Harlequinn

Hi all,

I was declared bankrupt in June 2013, and discharged early in Jan 2014.

Two questions:

1) I've been out of work throughout the bankruptcy, and therefore have never had an IPA/O. If I were to start work after the discharge, do I need to inform the OR and arrange an IPA? From what I've been reading, I don't think this is the case - and that what I earn from now on can't be subject to an IPA/O?

2) Do I have any requirement post discharge to inform the OR of changes to my income / expenditure, or say inheritance / lottery wins etc? My bankruptcy was straight forward, with no problems, objections or asset issues. In fact, is there any possible reason I would need to contact the OR now?

Thanks.

debt_doctor

Harlequinn wrote: »

Hi all,

I was declared bankrupt in June 2013, and discharged early in Jan 2014.

Two questions:

1) I've been out of work throughout the bankruptcy, and therefore have never had an IPA/O. If I were to start work after the discharge, do I need to inform the OR and arrange an IPA? From what I've been reading, I don't think this is the case - and that what I earn from now on can't be subject to an IPA/O?

2) Do I have any requirement post discharge to inform the OR of changes to my income / expenditure, or say inheritance / lottery wins etc? My bankruptcy was straight forward, with no problems, objections or asset issues. In fact, is there any possible reason I would need to contact the OR now?

Thanks.

Hi, No and No. You cannot get an IPA/O once you are discharged (unless court action began before you were discharged) and only assets that exist at the time of your BR or during it are of any relevance.


You only need to contact the OR if your asset or income position changes (whilst BR) or the OR asks something of you.


DD

Harlequinn

Thanks DD, that confirms what I thought.

It just seems odd to me that someone who gets a job 1 week before an automatic / early discharge, has potentially 3 years of IPA/O's to endure - while someone who starts 1 week after discharge, does not.

alastairq

Harlequinn wrote: »

Thanks DD, that confirms what I thought.

It just seems odd to me that someone who gets a job 1 week before an automatic / early discharge, has potentially 3 years of IPA/O's to endure - while someone who starts 1 week after discharge, does not.

Hi..it doesn't work like that!

An IPA is an agreement between the BR and the OR.

That agreement must be sorted before date of Discharge......this process could take several weeks or months.....so, getting work immediately prior to Discharge will not give an OR time to seek an agreement. An IPA cannot simply be imposed.

An IPO [as DD mentioned] goes via the Courts, thus, if proceedings have been commenced prior to Discharge, they continue afterwards.

Plus, an IPA can be varied to suit surplus income..for that is all it refers to.

So, unlike paying back any other form of credit, debt, etc.....where payments must be met regardless..an IPa can be varied or zeroed should individual financial circumstances change during the 3 year period.

Helpmeoutofthismess

Harlequinn wrote: »

Hi all,

I was declared bankrupt in June 2013, and discharged early in Jan 2014.

Two questions:

1) I've been out of work throughout the bankruptcy, and therefore have never had an IPA/O. If I were to start work after the discharge, do I need to inform the OR and arrange an IPA? From what I've been reading, I don't think this is the case - and that what I earn from now on can't be subject to an IPA/O?

2) Do I have any requirement post discharge to inform the OR of changes to my income / expenditure, or say inheritance / lottery wins etc? My bankruptcy was straight forward, with no problems, objections or asset issues. In fact, is there any possible reason I would need to contact the OR now?

Thanks.

Congratulations on your early discharge! I didn't think it was possible anymore so you are really lucky . I went BR in June 2013 but I am pretty sure I am in it for the long haul, oh well, just over 4 months to go!

H x