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Living with an IPA/lump sum payment percentages
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makingamends
Posts: 4 Newbie
Hey everyone!
I am currently in an IPA which I think is reasonable given the circumstances behind my enforced BR and I have had a good read through this forum which I have gained some invaluable advice from.
My income is occasionally variable by way of sales commissions. I know that I have to inform the OR within 21 days of receiving these payments. I have been trying to find out if the OR is likely to take 100% everytime I receive extra payments for the remaining period of my IPA or is it on a case by case basis. I have asked the OR a number of times but have had zero response to the direct question.
The reason I ask is that I found an article online in the insolvencydirect bis gov uk technical manual website that states:
(a) Where the bankrupt remains undischarged – the whole of the lump sum;
(b) Where the bankrupt is discharged and the order or agreement has:-
24-36 months remaining – 75% of the lump sum;
12-24 months remaining – 50% of the lump sum;
1-12 months remaining – 25% of the lump sum.
However - there is a caveat to this - it talks specifically about pension lump sum payments, not payments received through work income. I totally appreciate this document could be (a) out date and (b) not applicable
Is there anyone well into an IPA in a similar position who could share their experiences. I need to set my expectations for the remaining (pretty long) term left of my IPA IE is it likely that I will need to pay 100% of all my commission payments into my estate until the last payment date of my IPA.
Thanks in advance everyone!

My income is occasionally variable by way of sales commissions. I know that I have to inform the OR within 21 days of receiving these payments. I have been trying to find out if the OR is likely to take 100% everytime I receive extra payments for the remaining period of my IPA or is it on a case by case basis. I have asked the OR a number of times but have had zero response to the direct question.
The reason I ask is that I found an article online in the insolvencydirect bis gov uk technical manual website that states:
(a) Where the bankrupt remains undischarged – the whole of the lump sum;
(b) Where the bankrupt is discharged and the order or agreement has:-
24-36 months remaining – 75% of the lump sum;
12-24 months remaining – 50% of the lump sum;
1-12 months remaining – 25% of the lump sum.
However - there is a caveat to this - it talks specifically about pension lump sum payments, not payments received through work income. I totally appreciate this document could be (a) out date and (b) not applicable
Is there anyone well into an IPA in a similar position who could share their experiences. I need to set my expectations for the remaining (pretty long) term left of my IPA IE is it likely that I will need to pay 100% of all my commission payments into my estate until the last payment date of my IPA.
Thanks in advance everyone!
0
Comments
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Hi makingamends
I imagine your OR will be reluctant to commit themselves to a definitive answer until push comes to shove.
It's a judgment call from their point of view as they have a duty to recoup as much as possible for the benefit of any creditors. At the same time they are expected not to deliberately hamper your financial rehabilitation, and there is therefore an argument that you should be allowed to keep a portion of any commissions/bonuses/overtime payments, as otherwise you may not be sufficiently motivated to earn them, and that benefits no one.
That is the theory; hopefully others may be able to share anecdotal experiences.
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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