IPO, IPA whats the difference?

slipperyslope_3

Hi there

Maybe a daft question, but whats the difference between a IPO and A IPA

Thank you

wherediditallgo

There's no such thing as a daft question on here.

An IPA is an Income Payment Agreement, & it's an agreement between you & the OR that you'll pay a certain amount a month for 36 months. If you disagree with the amount the OR asks you to pay, you can contest/negotiate it, as the intention of it is to get you to pay something towards your debts each month.

An IPO is an Income Payment Order & is what usually happens when you can't agree an IPA amount with the OR. If the OR can't get you to sign the agreement, he can take you to court & get the court to set an amount. It's by no means automatic that the OR will get the amount he wants, because he'll be expected to show in detail why he thinks you should pay a certain amount. By the same token, you'll get a chance to tell the judge (again, in detail) why you can't pay it. Whereas sometimes people feel an OR isn't listening to them in trying to set an IPA, he has no choice but to allow you to have your say if the matter goes to court. The judge will listen to both sides, & will then set an amount. Once the amount is court ordered, that's it - you have to pay it.

There's more info on the Insolvency Service site here & here.

fermi

And to put it into context, numbers for 2007 were:

IPAs = 12,928
IPOs = 74

Richard_S

wherediditallgo wrote: »

The judge will listen to both sides, & will then set an amount. Once the amount is court ordered, that's it - you have to pay it.

There's more info on the Insolvency Service site here & here.

And a little more context, once the Court has ruled, the O.R has to abide by it.

I would urge anybody that feels they've been unfairly treated by an O.R, or the O.R has refused to acknowledge what a bankrupt feels to be a reasonable budget, to let a Court decide.

The judiciary has it's faults, as every institution in our society does, but they are a force to be reckoned with. The O.R does not welcome a Court hearing, and more importantly, the Judge will listen, and not hide behind regulations, or be influenced by targets that have to be met.

Richard