IPA rules after discharge

stepha4

Hi,

I’ve been paying an IPA every month for 18 months of £130. This month it was due to go down by £80 as my universal credit is going down by that amount. 

Now my landlord has let me know my rent is going up by £50. I’ve let the OR know and my IPA has been cancelled. 

Does anyone know if that’s it? Or can it be brought back in again between now and the end of the 3 years if my income were to go up? 

Thanks,
Amy

Sonic101

stepha4 said:

Hi,

I’ve been paying an IPA every month for 18 months of £130. This month it was due to go down by £80 as my universal credit is going down by that amount. 

Now my landlord has let me know my rent is going up by £50. I’ve let the OR know and my IPA has been cancelled. 

Does anyone know if that’s it? Or can it be brought back in again between now and the end of the 3 years if my income were to go up? 

Thanks,
Amy

Hi there
From what I've read (and understood from recently talking to an acquaintance who's been through bankruptcy), you have to report all changes in income within the duration of the IPA, so if your income changes again before the IPA period ends, you have to let them know. But an IPA period is three years in duration from the date it started regardless of whether payments stop and start.

So if, for example, you have an IPA that's due to end in December 2022 and your income goes up again in June 2022, you'd have to let them know and you might have restart payments again, but the payments will only go on until December 2022 when the IPA period ends. 

Minkym00

Above post is correct. 

peterparker12

If you're income goes above the threshold anytime before your IPA end date, you'll be obliged to contact them and expect to put your hand in your pocket

Mckenna

Consider the IPA a 3 year tax on your earnings. They already have your committed expenditure anything above that will be theirs to take.

ManyWays

The best thing to do is to ask your OR if you have to continue to report changes in your income and expenses.
The next one may well be your energy bills going up!