Ipa

Teen_the_Drama_Queen

Hi all

Just wish to clarify something with those in the know, please

Am I right in saying that an IPA lasts 36 months? Up until last year, I was paying an amount but then as my working circumstances changed, my IPA was reviewed and put at nil. My 36 months are up in June this year and I just wrote to Moonbeavers to clarify that my husbands IPA would stop in June this year (ours both began in July 2011) and was told that his final payment would be June (as I thought), but that mine was currently 'on hold due to a change in circumstances'. I recently had to complete an IPOQ, could the OR make me pay an amount beyond June this year? (not that I am earning anything much nowadays anyway). Is it 36 months period - or 36 months of actually paying an amount (if you see what I mean). I was hoping that come July, BR and IPAs were a horrible thing of the past

fermi

If an IPA is varied to £0 is still continues to run.

The law says that an IPA cannot end later than 3 years after it is first signed, so if MB or the OR try to extend it that is not legal.

fermi

http://www.legislation.gov.uk/ukpga/1986/45/section/310A

(5)An income payments agreement must specify the period during which it is to have effect; and that period—

(a) may end after the discharge of the bankrupt, but

(b) may not end after the period of three years beginning with the date on which the agreement is made.

Teen_the_Drama_Queen

Thanks Fermi, it's just MB's wording was a bit ambiguous, I thought 36 months was 36 months. Cheers :beer::beer:

fermi

Yes, well the law says 3 years end of. There is nothing in law allowing them to extend it.

Technically an IPA does not have to be monthly, but if it is then obviously 3 years = 36 payments. If some of those payments happened to be £0, then not your problem.