IPA Details

Lontara

Hello All.

New to the forum.

I know this may have been answered before however I was curious regarding IPA agreements that the agreement was just for a 36 month period OR until the balance is paid in full.

I recently had my IPA set and was of the understanding that it would last for 36 months not until a balance was paid.

I may be wrong but any comments would be greatly appreciated,

egrescrimp

It's for 36 months if your income changes, the IPA would change either up or down depending how things go over the 36 months.

Lontara

Thanks for the reply. Strange because the letter I had from the solicitor collecting the payments had within the letter that it was until the balance is paid. But as you state it also says 36 months, was just a little confusing.

egrescrimp

Lontara wrote: »

Thanks for the reply. Strange because the letter I had from the solicitor collecting the payments had within the letter that it was until the balance is paid. But as you state it also says 36 months, was just a little confusing.

That's basically the amount to be paid at your current agreed IPA rate, so for example if your IPA was £123 per month then that would be £4428 to be paid over 36 months. If you had a circumstances change at for example month 11 and your IPA was reduced to £33 per month, your balance would be £825 (25 x 33).

I hope that helps :j