IPA and employee bonus

unnameable

Hi All,

just a quick query. I've had a browse and have seen a few conflicting answers so thought best to give my own situation.

I was declared bankrupt last August, and have an IPA that I pay monthly. Most years my employer pays a bonus in June/July related to performance of the business over the year and as a rule of thumb it is the value of two weeks salary.

What would I need to do? Do I inform Clarke Wilmott and see what happens?

Also, we've just had our yearly "cost of living" pay increase. If I've read correctly, this is ignored for IPA calculations - is this correct?

Thanks!

egrescrimp

You need to inform Clarke Willmott who will then tell you the money must be paid to them, which you'll need todo unless you can put forward a good case for needing the money.

How much is your payrise? (This must be reported also, the OR will then decide if your IPA needs adjusting up or down or no change at all)

unnameable

Thought it might be so. I should know if it will/won't apply this year soon.

The raise was a 2% cost of living raise, so thought it fell in line with the statement below:

If a bankrupt person experiences a change in circumstances during the period of bankruptcy, ie an increase in salary (other than normal cost of living rise), then there is an obligation upon him/her to advise the Official Receiver/Trustee in Bankruptcy.