"Income to be considered in an income payments calculation"

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Hi there,


The subject is from the Insolvency Direct website and I am totally confused about the IPA calculation.


I work full-time time and also receive monthly UC, although even without the UC I would still be liable for an IPA.


I have copied over the section I am confused about below in -  31.7.43 IPA/IPO contribution should not exceed non-benefit income (amended April 2012)


It should be remembered that whilst the bankrupt's total income (including state benefits) can be included in the calculation of surplus income, it is the income from sources other than the benefit(s) which is providing the payments under the IPA/IPO, which is why an IPA/IPO should only be sought from the non-benefit income.


Surely this cannot mean that the monthly IPA payment is only going be based on my wages and I can keep the UC?


I'm sorry if it's a totally dumb question, which I think it is, but I just don't understand it.


Thanks for any clarity for a dumbass!



Comments

  • JCS1
    JCS1 Posts: 5,294 Forumite
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    It means if sole source of income is benefits, then no IPA
  • sourcrates
    sourcrates Posts: 29,026 Ambassador
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    IPA is based only on your earned income, your benefits are excluded for IPA purposes.

    Any amount of disposable earned income over £20 and you can expect an IPA.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Riverstone58
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    Thanks for the heads up.

    Yeah, I did some further follow-up following your reply and it then slotted in to place.

    Wish I'd known then what I know now as I might have been able to reduce my work hours and possibly avoided an IPA.

    Hey ho, due to ill health I may not be around for the 3 years in any case so reasons to be cheerful!

  • ManyWays
    ManyWays Posts: 170 Forumite
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    Has an IPA actually been set? If not then you can reduce your work hours now and inform your ORs office.

    If it has been set you can still reduce your hours and the IPA will be reduced but if your income goes up during the 3 years the IPA may be increased or reinstated.
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