Suspended IPA after Discharge...

NightShiftTrucker

Hi all, first post and hope someone can offer some advice..

I was declared bankrupt in March 2018 and an IPA was initially set up go around £80 per month which the OR deemed as excess income.

Shortly after my circumstances changed and this was swallowed up before even the First IPA payment was made, I explained this to the trustee who requested proof. I supplied detailed proof and this was then passed on to the OR for a decision.

The Trustee contacted me a few weeks later to say that the OR agreed that I have no excess income and that the IPA was suspended with immediate effect...that's great, however, it goes on to say that I am bound to inform them of any change in circumstances until the originally suggested end date of the IPA which is in 2021!

Is this correct, I've never made a payment to the IPA and if it's 'SUSPENDED' I don't see how it can also be 'IN FORCE'. the wording of the bankruptcy states that an IPA can only be altered after discharge if it is IN FORCE at the time of discharge...?

Has anyone been through a similar experience?

I really want this all behind me and to be able to concentrate on the future, id rather not have this looming over me for the next couple of years.

If you can offer any insights I would appreciate it.

elljay

It just means it's suspended (ie put on hold) until the end of the three years and could be brought back to life at any time during that period.

Similar happened to me, I lost my job during the first year (ironically because of the bankruptcy, there are still plenty of ignorant and judgemental people out there!!) so was given a nil assessment which ran until the end of the three years. It meant that if my income changed during that period I still had to notify the OR - even after discharge. So if I found another job the IPA payments might start up again.

I think the whole IPA system is hugely unfair, people without one can go out and get a shiny new job at one year and one day without financial repercussions, whereas those of us who pay IPAs can't do that until 3 years and one day after the IPA is set, without having to go through the whole IPOQ assessment again, and in my case that was three and a half years after the bankruptcy was made.

Have a chat with your OR if you're not sure how it works.

EJ

LaLaLa34

Did you sign and return the IPA agreement? If not then an IPA won't be in place. If you refused to sign it then of the OR feels you really deserve one they can take it to the courts. Which if for a measley amount I doubt they'd do. I'd be questioning this with the OR's office.

NightShiftTrucker

Thank you for your replies,

Yes, I did sign it and return it as that was before my situation changed. During my telephone interview the OR allowed me a very tight budget, no means of saving or contingency, was pretty blameful of my situation and I was led to believe I had no choice but to accept the IPA for the Bankruptcy to go ahead.

Then before I had even made a single payment I contacted Clarke Wilmott who were dealing with the IPA to tell them I would not be able to pay them. I was required to do more travelling and the increased fuel, as well as increased energy bills meant even what the OR had squeezed out, was no longer there. They requested bank statements and evidence which I provided, which was sent on to the OR by them.
The OR then decided that I had NO surplus income and the IPA was suspended with immediate effect.

I agree that it is a terribly unfair system, It essentially extends your BR to 3 years for anyone who can make payments and anyone who cant is free and clear after 1 year.

NightShiftTrucker

elljay wrote: »

It meant that if my income changed during that period I still had to notify the OR - even after discharge. So if I found another job the IPA payments might start up again.

Did you get another job?
Not a lot of incentive when thats hanging over you is there?