Bankruptcy and unreasonable IPA Agreement

woodformoretrees

You are discharged, but they have gone to the court before your discharge date to begin IPO proceedings. They have to begin this before you are discharged or else it can't be done.
It would seem that they knew they were running out of time with negotiations and have lodged it at the last minute.
It doesn't affect your discharge from bankruptcy though.

Muckers_Mate

Would the court have received the application for IPO at the same time as I was notified? i.e. at a date after my discharged? Or are the OR, well, trying it on?

Thanks

MM

p.s.What does the IPO mean - in plain English?

woodformoretrees

If the court received it after your discharge date then it won't go through the court. It needs to be received by them before you are discharged otherwise it would be void. I don't know if it's something they post or something they do in person at the court, so I'm not sure you can read anything in to the arrival date of your letter from them in relation to them applying for the IPO.

The IPO is just an IPA, but one that the courts enforce (order instead of agreement)....so if it needs to be altered then it needs to be altered through the court, not through yourselves in agreement with your IP/OR.

You will be able to put your case to the court though, and you may even find that they are more flexible than the OR you were dealing with in relation to your plans to purchase a vehicle. I think that maybe someone will be along soon that knows the facts on this one.

Congratulations on your AD today, and I'm sorry to hear that you've got this to sort now x

woodformoretrees

If you scroll down this post there's a link to IPO info
https://forums.moneysavingexpert.com/discussion/1056083

lilybankrupt

I was wondering what the situation is re: your surplus income until the IPO is made by the court.

If you're allowed to keep all your income until then, I was wondering whether that would help with the car purchase?

Hopefully someone more knowledgable than me will have the answer

Muckers_Mate

woodformoretrees wrote: »

Congratulations on your AD today, and I'm sorry to hear that you've got this to sort now x

Thanks. AD Bitter sweet tbh. I didn't realise when I made the choice/forced down the bankruptcy route that I'll have this hanging over my head for the next 3 years.

The bankruptcy process may give you breathing space for an all-too-short a while, but for those determined to use this time to improve their situation, there's little difference in the before and after. It's a major incentive for those in a similar situation I found myself in, to sit on their backsides and almost hibernate their way through it. I've even to tell the OR when/if I get a pay-rise so that they can claim 100% of that as well. Talk about a pound of flesh.

As far as dealing with the court or OR, I assume the court's involvement is merely an annoying (to the court) formality and will not help my position - i.e. it'll simply rubber stamp the OR's decision. From my pov I'm tending towards the opinion of "the devil the better you know"and to accept the IPA.

For anyone reading this and considering bankruptcy, please go into it with you eyes open. It may well help you in the short-term, but it's by no means a panacea.

MM

rizla_king

Court will make its own mind up on what is fair. Dont be so pessimistic.

wildheart83

The court has far greater powers, and it's definitely not just a case of confirming what the OR/IS has asked for.
I know it's easy for me to say keep your chin up, but until you find out whether the paperwork has reached the court in time, and until you receive a court date, please try not to stress about it.

Like you, I argued that my IPA was unfairly harsh, and I was very lucky in some respect that the OR ran out of time, but worry about the things you can change, and do something about, not things that for the time being, are outwith your control.
wild xx

Muckers_Mate

Thanks

Agreed about not stressing out.

The OR have dragged their feet for over 4 months - I've often had to pester them for responses to my correspondence.

From what I've read an application for an IPO is made when someone has been uncooperative or difficult in the negotiation towards an IPA and I've been anything but. I wasn't going to agree to an IPA that saw the payment taken from my bank account just before I was paid and therefore I suggested that it would be best if it was taken a few days later. I didn't refuse the IPA, just suggested a sensible amendment.

I'll just wait and see what I receive in the next few days.

Thanks to everyone for all the advice that has been left.

MM

wildheart83

AFAIK it's generally a Bankruptcy Restriction Order that the OR goes for when a person is being uncooperative. Generally speaking they will go for an IPO if the OR believes you are capable of paying the IPA, or when the Bankrupt doesn't agree with the amount set.
Courts will take all your points into account, it's just the option available to both the OR and the Bankrupt to come to an arrangement. If it was me in the situation, I'd think of it as you're going to a mediator rather than going to court.

Personally I don't think it's clear enough that an IPA is an agreement and not set in stone.