Thinking about it...

Farmer_jones

Hi


I am thinking about bankruptcy and have a few questions, perhaps somebody could answer them ?

"Bankruptcy" generally lasts 6 - 12 months, and during this period the official receiver (OR)sets up a payment plan to pay creditors, this is the Income Payments Agreement. (If the bankrupt (BR) doesn't co-operate or disagrees with the OR, then the OR goes for an Income Payments Order via a court)

Questions:
How long does the IPA last ?
Can the IPA be shortened, if so how ?

Thanks

FJ

Craig1981

bankruptcy will last a minimum of 12 months - havent heard of any less than that

IPA will be determined based on your statement of affairs - what your "excess income" is.at the end of each month. this, i believe, can last up to 3 years, but is a case by case basis. I do not believe the IPA can be shortened, unless change of circumstances

best to have a read of this for your own piece of mind:
https://www.stepchange.org/debt-info/bankruptcy-income-payment-agreement.aspx

broaps

Just remember that BR will stay on your records and will affect your ability to obtain credit.for 6 years. There is plenty of free advice available before taking this step. I found National Debtline were good for email/telephone advice and CAB were great for face-to-face stuff. The website debtcamel(set up by a CAB advisor) also has a lot of useful information.

fatbelly

An IPA/IPO lasts 3 years - there is no potential to extend this but obviously if your circumstances worsen during the 3 years this can be varied, to zero if necessary.