IPA end date for restrictions or payments

peterparker12

Good morning,

I have an IPA which was signed and agreed on 12 Dec 2001. I paid the monthly payment of £125 each month on time and all was going well until April 2022, when my car broke down. 

After a discussion with the ORs assistant, a payment holiday was given for 8 months to allow saving up of £1000 for a new car.

Payments were restarted in January 2023. 

I am now approaching the end of the 3 years (12 Dec 2024) and I am confused about the end of the IPA. 

I agree I owe 8 payments of IPA but does it mean the " restrictions "on declaring pay rises, overtime and bonuses still applies?

Or does my obligation to keep the OR informed of income and expenses end on 12 Dec 2024, three years to the date after they started?

I have also read somewhere the IPA starts on the first payment date (not the date of signature) which then would be 31 Dec?

Confused and I think this should be clearer.

Can anyone who has been through the missed payments route shine some light on this please?

Thanks in anticipation 

sourcrates

An IPA lasts a maximum of 3 years, as far as I am aware, it can`t be extended beyond that time frame.

I`m assuming the start date should be 2021, and not 2001.

This is the legislation:

31.7.10 Period of the agreement

The IPA agreement must be entered into before the bankrupt receives his/her discharge.  Whilst it cannot end more than three years after the date on which the agreement comes into force [note 5], it may end after the discharge of the bankrupt. The period for which the IPA is to run must be specified in the agreement signed by the bankrupt and the official receiver or trustee.

An IPA comes into force when it has been signed by both the bankrupt and official receiver or trustee [note 7] (see paragraph 31.7.9). Variation of the agreement can be made after discharge (see Part 7) by written agreement between the relevant parties,  or by the court on the application of the official receiver, the trustee or the bankrupt [note 10]. The period of the agreement can be extended or reduced on variation, but cannot be extended beyond a period of three years,  beginning with the date on which the agreement comes into force [note 5].

Minkym00

Sourcrates is using the wrong source (it's here; Technical guidance for Official Receivers - 35. Income Payment Agreements and Orders - Guidance - GOV.UK (www.gov.uk)) but is correct, the agreement cannot be extended beyond the three years/ 

sourcrates

Thanks @Minkym00 for clarification.

peterparker12

Thank you 

Yeah starting in 2021. I agreed to payments to be paid at the end of the agreement as I could technically pay but I needed to save for a car. 

Don't mind the extra but I don't want the restrictions on pay to continue as I'm thinking of changing jobs. 

Would you agree the conditions of notification of income (terms of the IPA) should end three years to the day it was signed by both parties - in this case 12 Dec 2024?