Is an IPA/IPO backdated to time of BR?

HEADACHE

Hi to all the good people on this board,your help has been awesome,i thank you all:T

My question is this,is an IPO/IPA backdated?

For example if date of BR was 01/03/08,but the IPO/IPA agreement was signed on say 01/07/08,can the OR claim any income between these two dates? Or is it purely based on income from the date of signing?

Also,do they base the IPO/IPA on the I&E info taken at the date of the OR interview or do they do an update,in this case,say June 08?

Thanks in advance.:T

fermi

The IPA runs for 36 months from it being set up, so it's not backdated.

If a significant time has passed since your BR date, or the OR has reason to think the your I&E has changed, then it's likely that you will be asked to complete and return a fresh IPOQ (Income Payment Order Questionnaire) to check your I&E.

wherediditallgo

An IPA isn't back-dated. Once you've signed the agreement & have returned it to the OR, you'll be sent a letter giving the details of the agent/trustee to whom payment should be made. That person/organisation will also contact you to confirm they're dealing with the payments. You'll be asked to contact them & agree the date payments are to start, & the date will usually fall within a calendar month.

The IPA is based on the info given in the SOA regardless of how much time has passed since its submission, provided you haven't provided additional info since then & provided the OR hasn't discovered other material facts in the course of assessing your case, eg that Aunt Maud has left you a house two years ago that you 'forgot' to put on the form. An IPO is a court order which is the result of you failing to agree an IPA with the OR. If a lot of time has passed, the OR may ask you for an updated I&E before taking the matter to court, but even if they don't, it'll be based on everything submitted to date, plus all the OR's calculations, correspondence between you, them & other involved/interested parties. An IPO may result in a BRU/O (eg for giving preferential treatment to a creditor), so info from/about your creditors could also be included.

EDIT: It took me so long to type this, fermi had already answered by the time my post appeared.

fermi

If sufficient time has passed, or the OR feels that there is cause for a fresh review of the I&E, then they can and will sometimes insist on the completion of a new IPOQ. Not always, but it can and does happen.

EDIT: In your case Headache, that time-scale you mentioned may be particularly relevant, since it is around that time that it could be a precursor to a possible ED. In which case they nearly always do a review of I&E.

But that is getting way ahead of ourselves.

HEADACHE

Again,many thanks for all your input.

One more question,what other work does the OR do prior to setting up the IPA? Will they want anymore face to face interviews? will they want to see bank statements? accounts? uptodate income? visit my home?
I have a house but the equity is tiny,about £3,500,will they want me to sell it? I told the OR initially that there was about £9k equity but my mortgage balance is higher than what i'd thought it was.

Generally,whats the timeline of events leading up to the IPA?

Many thanks in advance.

fermi

The OR will normally want to get any IPA set up as soon as is practicable.

Visiting your home is very unlikely.

Giving you a time line, and commenting on what may or may not happen or be required is very very difficult. Every person's case is dealt with on it's own merits. Some people with a simple case hardly hear a peep from their OR after the initial requests for info, while others with a much more complex case/affairs may find themselves having a second interview and being asked to provide further information throughout their bankruptcy.

Exactly where your case will fall in that spectrum isn't easy for us to tell here.

Property isn't my thing, but £3000 of equity can easily be wiped out by the variation in valuations that you are likely to get from alternate sources.

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/F/FamilyHome.htm

The bankrupt's interest in a dwelling-house can be valued using a variety of methods including:

1. bankrupt's valuation;
2. local knowledge;
3. information from mortgagee;
4. use of internet;
5. drive-by valuation; and
6. professional valuation.

The official receiver should decide which form of valuation is appropriate on a case by case basis.
In any sale that the official receiver attempts he/she should ensure that there is a professional valuation of the dwelling-house, unless a recent independent valuation has been obtained which he/she is satisfied is accurate.

It may be worth you getting a few valuations yourself that you can potentially provide to the OR.;)

If there should be a small/zero/negative amount of equity/BI in the home, then there is still the option of someone else purchasing the BI from the OR/trustee.

There is more here: What will happen to my home

wherediditallgo

They have occasionally wanted more than one interview, but usually one is enough. If you can't provide bank statements, the OR can get them for himself as long as you've given the correct account info. Unless they've got strong suspicions about high-value assets not being declared, no-one will be coming to your home. I can't advise on the property, but someone else probably can & will tomorrow.

As for the timescale, every case is different. It all depends on the info on your SOA & how much additional info the OR needs to get, plus the workload they've already got. Some people hear about an IPA with a few weeks, others don't hear anything for months. As an IPA can be set at any time before you're discharged, once you've had your interview it's probably best to put it to the back of your mind & get on with your life. The OR will contact you if he needs to.

fermi

With regard to valuations, Addicted2Chocolate's posts in the thread linked to below are interesting as she has some idea how the OR does these things.;)

http://forums.moneysavingexpert.com/showthread.html?t=645649

But there are quite a few other threads discussing how to deal with your interest/BI if you feel like searching back through the threads.