Question about I.P.A please

Daisy4567

Hi again,

So, we had our interview yesterday. It was an hour and a half long and she gave us a total grilling! Now she writes her report up to the OR (I thought she was the OR)!

My question is this. I've been lumbered with an IPA of £80.00 a month. Seems a lot to me as I only earn on average £895.00 a month. As our a lot of our debts are joint, how has she worked this figure out?

Also, we have been told we will be automatically released from BR on 13.08.16 - if I get a Payrise after this date, will the OR increase my IPA? So effectively, if I'm released from BR, but asked to pay an IPA for three years and I get a Payrise during that three years, will they be able to take the difference?

I was told that once you're released, you can say, for example, win the lottery the day after release and the OR can't touch it. But if you're in a 3 year IPA, how does this work?

Many thanks in advance x

tigerfeet2006

Daisy4567 wrote: »

Hi again,

So, we had our interview yesterday. It was an hour and a half long and she gave us a total grilling! Now she writes her report up to the OR (I thought she was the OR)! No she is your caseworker, then there is the Assistant OR (AOR) and then the OR. The caseworker does all the paper work etc. and the minutiae of the job.

My question is this. I've been lumbered with an IPA of £80.00 a month. Seems a lot to me as I only earn on average £895.00 a month. As our a lot of our debts are joint, how has she worked this figure out? You need to ask her for a breakdown of your SoA. Do NOT sign anything until you have this and post it up here.

Also, we have been told we will be automatically released from BR on 13.08.16 - if I get a Payrise after this date, will the OR increase my IPA? So effectively, if I'm released from BR, but asked to pay an IPA for three years and I get a Payrise during that three years, will they be able to take the difference? While you are in an IPA should your circumstances change ( wages or outgoings) then you inform them and your IPA can be altered up, down or suspended (the suspended months count towards the 36 months)

I was told that once you're released, you can say, for example, win the lottery the day after release and the OR can't touch it. They can touch any interest/earnings from the lump sum but not the lump sum. But if you're in a 3 year IPA, how does this work? The lump sum will go to the OR.

Many thanks in advance x

Hope that helps a bit.

Daisy4567

That's a bit of a bummer because it means it's pointless me getting a pay rise ��

Does this also mean that if I say, inherited from a Will, they will take that too? Whilst I am in the IPA?

Also, if I was to take over the family business after I am released but before the IPA ends, that they would take the business into account?

elljay

tigerfeet2006 wrote: »

I was told that once you're released, you can say, for example, win the lottery the day after release and the OR can't touch it. They can touch any interest/earnings from the lump sum but not the lump sum. But if you're in a 3 year IPA, how does this work? The lump sum will go to the OR.

Could someone confirm this, or perhaps I've read it wrong. My understanding was that once discharged, but with an IPA, you have to declare and hand over the interest on any windfall, but the windfall itself doesn't have to be paid over. Just the interest from wherever you stash it. If you're not yet discharged, but receive a windfall, the whole lot goes to the OR.

So in Daisy's case, if she gets an inheritance after discharge but while still in an IPA, she can keep the inheritance but hand over the interest it earns in the bank - which is income.

fermi

Yes, something like the capital/property of an inheritance, lottery win, etc is treated as as property/asset rather than income, so can be claimed if it devolves on you before discharge but not afterwards.

However, as you say any income separately derived from that asset can be counted as income in any calculation for an IPA that may be in place.

tigerfeet2006

elljay wrote: »

Could someone confirm this, or perhaps I've read it wrong. My understanding was that once discharged, but with an IPA, you have to declare and hand over the interest on any windfall, but the windfall itself doesn't have to be paid over. Just the interest from wherever you stash it. If you're not yet discharged, but receive a windfall, the whole lot goes to the OR.

So in Daisy's case, if she gets an inheritance after discharge but while still in an IPA, she can keep the inheritance but hand over the interest it earns in the bank - which is income.

Sorry posting while tired and read it wrong.

If you get a windfall while BR it all goes to the OR. If it is after and no IPA then you don't have to worry. If in an IPA then it's the interest on the lump sum.

Wage increase/out going change on SoA while BR then notify the OR and submit new SoA if a surplus is identified then an IPA will be put in place. With and exsiting IPA then it can be altered up. down or suspended if there is no surplus (suspended months are counted towards the 36 months)

If it is an inheritance from a death then it will depend when the death was. Before or during BR then it all goes to the OR even if the estate is settled years later. If in an IPA but after discharge then it is the interest again.

Hope that makes more sense.

Daisy4567

Thanks guys, so what about taking over the family business after discharge?

Daisy4567

Also, as she's given us our release date, am I right in assuming they won't impose any further restrictions?

tigerfeet2006

Daisy4567 wrote: »

Thanks guys, so what about taking over the family business after discharge?

That will not be a problem. If you are in an IPA then you just inform the OR and produce the new SoA. If there is no surplus then the IPA will be suspended but still active until the 36 months are up. You will still need to declare any changes until it comes to an end.

tigerfeet2006

Daisy4567 wrote: »

Also, as she's given us our release date, am I right in assuming they won't impose any further restrictions?

Nope! they can investigate/do anything right up until the release date. Your BR runs for 12 months regardless of anything. Generally the only reason it will be suspended is if you fail to co-operate with the OR and he goes to court to ask for a suspension to investigate further.

elljay

Daisy4567 wrote: »

Also, as she's given us our release date, am I right in assuming they won't impose any further restrictions?

Everyone's release date is known, it's always a year after your bankrupt date these days. They will be working away on your case for a while yet. At some point - I think often around 6 months in, you get a letter saying your case has been passed on to the long term team or whatever it's called. That means that any queries have on the whole been resolved and it's generally smooth sailing from then on. Your communication then tends only to be with Clarke Willmott unless something unusual happens.

Sorry Tigerfeet, didn't see your response before posting!