Have messed up...Help

DJE1

Hi,

First off I know I have messed up, just need some guidance. Almost 2 years ago I declared BR, I have been paying an IPA for 18 months, the end of last year I started suffering from ill health, however kept up my IPA until last month, I have been subsidising my Husband as well who is in an IVA, his business has been suffering, I have asked for a payment break from IPA, this is where my problem starts, we moved in January because we could not afford the rent where we were, it is only now I realise I have not informed the OR, with everything that has been happening it never occurred to me, so now I'm terrified of the outcome, I intend to ring the OR & explain but don't know where to start or what they might do, PLEASE, any advice would be so welcome. I stopped working 6 weeks ago because the job I had was too stressful, but my plan was/is to get another job & continue my ipa payments, my only income right now is my state pension & my final dilemma is that the house we now rent is with a Family member who will not give us a lease, so no proof of what rent we pay for the OR apart from my bank statement.

Thankyou in advance.

alastairq

First, contact the OR as soon as possible.

Secondly, and IPA is not a 'fixed' amount. It is an entirely variable amount.....variable, subject to changes in your financial circumstances.

If there are any changes in your circumstances, then the OR needs to be notified within 21 days of the change.

If your income changes, then notify the OR within 21 days of the change.

If the change results in less surplus income, [or, none at all] then the IPA amount will be varied accordingly...or, zeroed altogether.

You mentioned you 'kept up your IPA'.....?

Is that a case of,meeting the payments despite having less income?

If that was the case, then the OR should have been informed as above.

An IPA is NOT a debt repayment scheme.....it is simply the contribution of surplus income [as identified in the SOA]...to the BAnkruptcy estate.

After the bankruptcy administration expenditure is met, then whatever is left, will be divided up equitably between known creditors. If the latter is zero, so be it!

debt_doctor

Hi,


I echo the good post above - it seems that from at least this year, you should not have been paying an IPA - you shouldn't have an IPA when you can't afford your rent and have to move.
You would do well to put up your SOA on here for us to look at.
DD