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It can be possible to pay your IPA off early

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It can be possible to pay your IPA off early

edited 30 November -1 at 12:00AM in Bankruptcy & Living With It
7 replies 919 views
Jono987Jono987 Forumite
185 posts
Seventh Anniversary 100 Posts
edited 30 November -1 at 12:00AM in Bankruptcy & Living With It
Hi guys, im currently looking at getting a mortgage 3 years after going bankrupt and thought id let people know how it might be possible!

Around a year and a half into my bankruptcy, my parents very kindly offered to pay my IPA off in one go. I contacted the OR and they agreed to it, and then told me in writing that after it was paid, the IPA would be stopped and could not be reinstated.
I asked specifically if this meant i could look for a better paid job without the risk of getting it taken from me, and they said yes!

I never got a new job immediately (around a year later) but i thought people may be interested that it can be possible in some cases to have your IPA dealt with early.

Replies

  • SarahDoeSarahDoe Forumite
    39 posts
    Hi. I had it done too :-) made my life a lot easier. Since then had a significant pay rise and yet more to come :-))
    As mentioned before: asked OR, they agreed, paid money, provided the evidence where money came from.
    And thats it. Got letter confirming everything is closed :-)
  • Jono987Jono987 Forumite
    185 posts
    Seventh Anniversary 100 Posts
    That's exactly how it worked for me! :)
    I was very lucky in that I got a very kind OR. Infact everyone at the OR office that dealt with me were very kind and wished me luck in turning my life around in the future.
  • Huxley4742Huxley4742 Forumite
    2 posts
    First Post
    MoneySaving Newbie
    Thanks guys, I am wanting to pay mine off early, my father has kindly offered to supply the funds, what did you specifically write to the OR? I’m worried that they’ll refuse and come sniffing around my finances and I’m back on my feet now.
  • SarahDoeSarahDoe Forumite
    39 posts
    Hi. I just said that i want to put all experience behind me as soon as possible (divorce following gambling addiction of my now-ex). Therefore, my dad kindly offered to clear the balance provided that IPA is concluded and cannot be reinstated.
    OR had to check with manager and few days later sent email confirming that it is good to go ahead, and company collecting the money is instructed.
    When funds were available, i gave them a call, made payment. And sent an email with bank statement clearly showing where money came from :-) few days later got a letter that it was done and dusted :-)
  • edited 13 February at 8:38AM
    Huxley4742Huxley4742 Forumite
    2 posts
    First Post
    MoneySaving Newbie
    edited 13 February at 8:38AM
    I wrote to the OR and this prompted them to do a full review of my finances!!! So be careful, I was ok as nothing hidden from them and they have agreed to let me pay off the IPA 22 months early which releases me completely. Huge relief and thanks to SarahDoe for the post. 
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • edited 13 February at 11:09AM
    bradders1983bradders1983 Forumite
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    edited 13 February at 11:09AM
    Aye I wouldnt do it, if you tell them you have come into a bit of money they can easily come sniffing around. Just put the money in the bank and let them take the monthly DD out (or you pay the monthly SO). You dont get a discount for paying it off early as far as I am aware.
  • SinglemummSinglemumm Forumite
    155 posts
    Third Anniversary 100 Posts Name Dropper
    yours IPA monthly amount was huge pls?

    Huxley4742 said:
    I wrote to the OR and this prompted them to do a full review of my finances!!! So be careful, I was ok as nothing hidden from them and they have agreed to let me pay off the IPA 22 months early which releases me completely. Huge relief and thanks to SarahDoe for the post. 

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