Please clarify IPA/IPO's and BRO's

vonsworld

Hello,

I've read lots about BR on this great site, but please could you confirm or clarify the following points for me, thanks:

In some cases a simple 'Correct' would be fine

1. An IPA/IPO can only be applied during the term of the BR. So when the BR ends, maybe after 6-9 months, if an IPA is not already in place it cannot be applied later.

2. I understand that an IPA lasts for 3 years only. How often does the OR reassess or vary the repayment amounts during the 3 years? Are you bound to tell the OR of any changes in income? Presumably you can always go back to the OR for reassessment if you fall on hard times?

3. I suspect that the best option, if possible, would be to earn very little during the BR, so as to avoid the imposition of an IPA. Then once the BR has ended seek a better paid job? Although perhaps a bit unscrupulous I know!

4. How does the imposition of a BRO affect an IPA? Can an IPA be imposed at any time during a BRO (max 15 years), and is the IPA duration still limited to 3 years?

For example, if the BRO was for 5 years, but due to low income an IPA could not be applied, say, during years 1 and 2... could the OR require an IPA during years 3-5?

Thanks for clearing some of the confusion,

Kind regards

John

gratton20

vonsworld wrote: »

Hello,

I've read lots about BR on this great site, but please could you confirm or clarify the following points for me, thanks:

In some cases a simple 'Correct' would be fine

1. An IPA/IPO can only be applied during the term of the BR. So when the BR ends, maybe after 6-9 months, if an IPA is not already in place it cannot be applied later.

2. I understand that an IPA lasts for 3 years only. How often does the OR reassess or vary the repayment amounts during the 3 years? Are you bound to tell the OR of any changes in income? Presumably you can always go back to the OR for reassessment if you fall on hard times?

3. I suspect that the best option, if possible, would be to earn very little during the BR, so as to avoid the imposition of an IPA. Then once the BR has ended seek a better paid job? Although perhaps a bit unscrupulous I know!

4. How does the imposition of a BRO affect an IPA? Can an IPA be imposed at any time during a BRO (max 15 years), and is the IPA duration still limited to 3 years?

For example, if the BRO was for 5 years, but due to low income an IPA could not be applied, say, during years 1 and 2... could the OR require an IPA during years 3-5?

Thanks for clearing some of the confusion,

Kind regards

John

Hi John

Let me try and answer simply where I can. Someone more experienced will, I am sure, correct anything I get wrong or do not know the answer too.

Q1 - Correct, if the IPA or IPO is not put in place before discharge it cannot be done afterwards.

Q2 - Renewal times are probably up to the OR depending on his assesment of your situation, ie, is it likely your income will go up, down etc. You MUST inform him/her of any change in circumstance .. define change? ... well more than a pound or two either way to be safe!

Yes, you can certainly request a review if you need to .. it may not be succesful but i THINK (not sure) you are allowed to appeal if not.

Q3. - It is not for me to comment really but that action would of course minimise your income at a time when it was being assesed and after discharge your income would not be relevent. I do believe, and I am not sure, but some capital or assets aquired AFTER discharge can in limited circumstances be grabbed by the OR ... I think this is in very limited unusual circs .. someone expert will be able to clarify that I am sure

Q4 - An IPA is limited to 3 years, full stop. A BRO can I THINK, not sure, mean that a IPA can be imposed during the period of a BRO but it would still only run for max 3 years .. please wait for one of the brains here to confirm or rubbish that as I am really NOT certain

Hope this helps - please do wait for the clever bods on this forum before you take my views as being 100% accurate:o

fermi

vonsworld wrote: »

1. An IPA/IPO can only be applied during the term of the BR. So when the BR ends, maybe after 6-9 months, if an IPA is not already in place it cannot be applied later.

I agree with gratton20. Correct.

vonsworld wrote: »

2. I understand that an IPA lasts for 3 years only. How often does the OR reassess or vary the repayment amounts during the 3 years? Are you bound to tell the OR of any changes in income? Presumably you can always go back to the OR for reassessment if you fall on hard times?

Up until recently IPA agreements have stated that you only need to inform the OR of any increase in income up until discharge. Now agreements are being sought that state this is so until the end of the 3 years irrespective of discharge. It always has been (and remains the case) that you are free to tell the OR about any decrease in income or increase in expenses whenever they occur so that an IPA can be recalculated.

In practice, the OR's aren't too bothered about minor changes that benefit you, since it costs far more in time and effort to do the admin for these than they ever get back. So for small changes there seems to be an unofficial "If you don't tell, we won't ask." policy. Each OR will have their own ideas on this, so you would have to ask.

I've seen a few people state that their OR/RTLU/CW asks for a new I&E every 6 months - a year, while for others the they seem to forget you exist unless reminded.

vonsworld wrote: »

3. I suspect that the best option, if possible, would be to earn very little during the BR, so as to avoid the imposition of an IPA. Then once the BR has ended seek a better paid job? Although perhaps a bit unscrupulous I know!

If that's how circumstances pan out then that would be fine.

If however the OR was of the opinion that you are deliberately manipulating circumstances in order to avoid an IPA, they could consider that you are attempting to put funds beyond the bankruptcy. This might be the case if you were to leave a well paid job without a compelling reason for the duration of the BR and then return to a much higher paid one afterwards.

It has been said that the OR could take action against you via the courts in these circumstances, but I've not seen how that works.

Basically, don't be seen to be taking the proverbial p*ss and you will be OK.

vonsworld wrote: »

4. How does the imposition of a BRO affect an IPA? Can an IPA be imposed at any time during a BRO (max 15 years), and is the IPA duration still limited to 3 years?

A BRU/BRO does not extend the period during which an IPA/IPO can be sought by the OR. It's up until discharge only.

vonsworld wrote: »

For example, if the BRO was for 5 years, but due to low income an IPA could not be applied, say, during years 1 and 2... could the OR require an IPA during years 3-5?

NO.

There is more info on IPA's here:

http://bankruptcy.informe.com/income-payment-agreements-ipas-dt18.html

or http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=9679

debt_doctor

Yep, an IPA CANNOT be imposed once discharged, BRO s and IPA s have no link, and either you or the OR can request a variation of an IPAat any time during the 3 years that it will last.

Best wishes

DD.