IPA, amount required & what happens after AD.

Saffypig

Hi Guys,
I’m confused about an IPA after discharge.
We went BK a week ago, OR wants an interview, not until mid April, but I’m really panicking about how much money they will want in the IPA.
I earn a reasonable salary and will have disposable income, however everyone always says after discharge, your money is your own again, however how can that be if I get a three year IPA and especially if they want all my disposable income?
I accept for a year it will be tough, but I’m also looking to borrow some money from a family member to buy out the beneficial interest in our home, but when can I start to pay them and how am I supposed to do so, if I have no spare cash for three years.

Can I negotiate the amount? Does anyone have any ideas, or has been in my situation?
Many thanks in advance

longtermplanner

hi Saffypig,

If you have disposable income, then an IPA will be set for 3 years. That is what will happen and you should have been aware of that before you decided to go bankrupt.

For most people this means they will be left with little disposable income to repay family members until the IPA is finished.. You should ensure that your relative is aware of this.

If you want to know how large your IPA is likely to be, you could post a Statement of Affairs here, see http://www.stoozing.com/calculator/soa.php

alastairq

Can I negotiate the amount? Does anyone have any ideas, or has been in my situation?

As IPA says [its on the tin], it is an agreement.

Therefore is subject to negotiation.

[As LTP says, post your SOA up for perusal & suggestions?}

From your opening line, I see you only have half the story?

Once an IPA is agreed [and it must be agreed before Automatic Discharge].....that IPA runs for 3 years, from that date.

However, it's not operated like a debt repayment system.


Once a figure is agreed, if, subsequently, the BR's circumstances change, then the IPA can be varied up or down [or zeroed altogether] ....as required...and there is room to appeal to fund sudden emergencies.

Once the 3 years are up, that's it!

However, as Debt Doctor will attest, too many people actually understate [or, allow an understatement?] their SOA, with regards to an IPA.

The trick is, to reduce any surplus big time, for the duration of the Undischarged period...so no IPA can be agreed.

SteveABC

You will pay 100% of your disposable income for 36 months. It is tough, but as someone who has a couple of months left, it really does fly by.

Also it is an agreement and you don't have to agree with initial OR calculations. Mine was reduced by over £200 per month after I wrote a reasoned letter explaining why I thought it was too much.

Saffypig

Thanks Guys, will have to wait and see when i meet the OR

dojoman

When you say "everyone says the money would be your own after discharge" who are you actually referring to? I have just finished my IPA and believe me it does go very quickly, my IPA was for 400 pounds a month, which compared to what I was paying pre BR was very good for me.