Working extra Hours in Bankruptcy / IPA payments

Mart7379

Hi guys, 
I was recently contacted by the IPA team in regards to paying into an IPA, obviously I have to inform them of any increase or decrease in earnings. 

I occasionally work overtime, rare, but I do it. (Running upto Xmas and B/days or Holidays) Anyway, in accordance with the IPA Agreemrnt, I will have to inform them of the occasional increase in earnings. When I inform them, are the likely to take the full amount of the extra income meaning working overtime would not be worth it. Or would they just take a percentage of. 

Thanks in advance  

sourcrates

I stand to be corrected, but according to guidance, your IPA is worked out at the beginning of your bankruptcy, dependant on your disposable income at the time, and unless a permanent change occurs, such as your income or expenditure either increase or decrease, that is how it stays.

Overtime, as you say is rare, so it would not be classed as a permanent change, so therefore no need to inform the OR.

That is how I interpret it, of course you should just contact the OR and let them either confirm this is the case, or not, as the guidance does not cover things like overtime.

Mart7379

Thanks @sourcrates I thought as much. I’ll get in touch with them in due course and confirm. 

TinyPomegranate

Mart7379 said:

Thanks @sourcrates I thought as much. I’ll get in touch with them in due course and confirm. 

Hi Mart, sorry to jump in on your thread but this question would affect me too. I haven't yet started my IPA process but from what others have said I'm guessing any day now and I too do occasional overtime. Please let us know your answer when you get one. Thanks.

Mart7379

I TinyPomegranate said:

Mart7379 said:

Thanks @sourcrates I thought as much. I’ll get in touch with them in due course and confirm. 

Hi Mart, sorry to jump in on your thread but this question would affect me too. I haven't yet started my IPA process but from what others have said I'm guessing any day now and I too do occasional overtime. Please let us know your answer when you get one. Thanks.

I’m going to try and get in touch with them on Monday morning and get an answer. In terms of waiting for a phone call, I was declared bankrupt on 24th April, and only heard from the IPA team about 3 weeks ago.

it seems daunting up until the point of the phone call. I got a really friendly helpful person. Was expecting an hour long phone call, but was only on for about 10 mins (in between the phone cutting out)

Mart7379

I have been in contact with the IPA team and they have confirmed. If the overtime is irregular and not a permanent increase. I do not need to pay it to the IPA, if however it becomes a permanent increase then I do then need to inform them, so the same as if my wages go up on a basic week

TinyPomegranate

Thanks for coming back with an answer Mart, that's reassuring to know.

peterparker12

Just to say on this one my OR Said when asked this question “thank you for letting me know. Please contact me again if the overtime becomes regular despite whether it is permanent or contractual”

Any idea what regular means in this context?

peterparker12

Any ideas what regular is? I’d say more often than not

peterparker12

If I do overtime say in January and Feb, then my IPA is upped for march onward. Then I don’t do any in march. They’ll have to alter it down for march. Then I do in April, then they alter it up again…..

Mckenna

You need to check your IPA.
Mine for example has a clause in that also includes any irregular payments being forfeit to the OR. So overtime would not be worthwhile.

From this thread it would seem OR's take different stances (bizarrely)