NEW IPA after 6 months - LOCKDOWN what do I do? 14 May 2020 at 11:17AM in Bankruptcy & living with it 7 replies 321 views

LaurenHales1991

Hi All,
I was hoping someone with more knowledge than me could help.
I am 6 months into BR and have been contacted by the OF to fill out a new IPA as they said they would do at some point. I do not currently have an IPA due to the SOA which was submitted when I went BR.

Due to the current circumstances (COVID 19 LOCKDOWN) a few things have changed, for example my gym membership which I was allowed has been frozen and my petrol and train tickets which were in the SOA have stopped as I am not currently travelling to work as I am working from home, however it is likely that in the month or so I will be returning as normal to work and will have to pay out for travel. This is about £100-120 a month plus my gym membership of £25 a month. 
I also am not got socialising so that's another £20-30 a month gone.

I live with my parents so I am paying more towards rent due to parents being struggling slightly due to job changes. I am also helping out with more food shopping and essentials. 

My question is, do I fill out the IPA as it stands right now today ( I have two weeks to do this ) or do I fill it out as what it will be for the rest of the year and what it has been, nothing else has changed, my wages have stayed the same and it is likely that very soon I will be spending out on travel either probably in petrol costs, eventually will get hair cut again for work and slowly go back to normal.

I am just a little confused, I don't want to really get into a 3 year IPA for a very strange time  and temporary change which is going to go back to normal in coming weeks/ month. 

Is anyone else in this position or can anyone offer any advice?

Thanks 

mwarby

I would assume life as normal, especially now that lockdown is starting to ease. Your supposed to be allowed a reasonable standard of living which will hopefully include the items mentioned. Setting up an IPA now to change it post lockdown isn’t ideal, especially if there is a rush of such changes 

I would perhaps ask your OR what they expect,  for if nothing else to not go through it twice

its worth bearing in mind that you don’t have to agree to an IPA, if you and OR can’t agree it would need the OR to go to court for an IPO, and obviously that will take some time(the courts will be busy when they reopen)

IPA- income payment arrangement 
IPO - income payment order

george_112

mwarby said:

I would assume life as normal, especially now that lockdown is starting to ease. Your supposed to be allowed a reasonable standard of living which will hopefully include the items mentioned. Setting up an IPA now to change it post lockdown isn’t ideal, especially if there is a rush of such changes 

I would perhaps ask your OR what they expect,  for if nothing else to not go through it twice

its worth bearing in mind that you don’t have to agree to an IPA, if you and OR can’t agree it would need the OR to go to court for an IPO, and obviously that will take some time(the courts will be busy when they reopen)

IPA- income payment arrangement 
IPO - income payment order

This is basically what my OR said to me. She took all my outgoings as if I’m still going to work. She seemed to be working on 100% pay so use normal
expenses. I’m presuming if you have reduced pay they will take expenses for lockdown, if that makes sense as you’re having it both ways then I suppose

mwarby

Well I think working g on 100% expenses and 80% income maybe having your cake and eating it

LaurenHales1991

Good morning,
Thank you for your responses. I haven’t had any contact from my OR since the start so I never really know how much contact I’m meant to have and how much questions to ask. 

I’m still receiving 100% pay I’m just working from home. 

I guess I was writing to see if anyone else is currently in the same situation as this has never happened before so I can’t even look back at past posts. It’s a strange time. I assumed I would just fill it in like I did before for the whole year and what I would spend monthly, however I stopped in my tracks because right now everything is slightly different in regards to what is coming out of my account. I just don’t want to be stuck paying into a 3 year IPA for something which is temporary and will likely change soon. It’s a strange one....

I don’t know what the OR will say and I am
honestly worried to ring and have that conversation.

Thanks 

Fighter1986

Just ring the OR and have the conversation. IME, they're very understanding.

Any IPA is revisable when circumstances change; worst case, they set up an IPA for one monthly payment and you subsequenty write to them detailing your change in income and expenditure, and they cancel the IPA. 

Bit of a faff, but you certainly wouldn't be expected to pay money you only had surplus for a month or two, for 36 months.

Minkym00

An IPA costs £150 in admin fees to set up.

You won't get one. 

mwarby

The OR will also be busy enough not to want to redo the expenses when things go back to normal, so they’ll probably just say to give normal figures