Quick IPA question.
Jaypsarticus
Posts: 31 Forumite
Hi Folks,
Just reading a thread regarding IPA's and the wording i believe states:
Until the end of the term of this agreement I shall notify the Official Receiver or other trustee of any increase in income within 21 days of becoming aware of the increase. I understand that the Official Receiver or trustee may claim any increase in income for the benefit of my creditors. I acknowledge that my obligation to make payments under this agreement does not end when I am discharged from bankruptcy and that failure to make payments can affect the date upon which I am discharged.
Where does it state that you need to inform the OR of any change of circumstances?
This to me says that they only require to be informed of an Income Increase/Decrease?
Any one clear this up?
Just reading a thread regarding IPA's and the wording i believe states:
Until the end of the term of this agreement I shall notify the Official Receiver or other trustee of any increase in income within 21 days of becoming aware of the increase. I understand that the Official Receiver or trustee may claim any increase in income for the benefit of my creditors. I acknowledge that my obligation to make payments under this agreement does not end when I am discharged from bankruptcy and that failure to make payments can affect the date upon which I am discharged.
Where does it state that you need to inform the OR of any change of circumstances?
This to me says that they only require to be informed of an Income Increase/Decrease?
Any one clear this up?
0
Comments
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Remember that the OR is acting in the interests of your creditors so they specifically mention an increase in income as that is likely to benefit them (by rights they should probably include a reduction in expenses, but these are probably relatively rare).
They probably assume that you will tell them of anything that will reduce any IPA payment (e.g. reduced wages, increased costs, etc.) as it's in your favour to do so rather than your creditors.
Of course in some cases an increase in income is partially offset by increased costs (e.g. travel) so the IPA would be adjusted accordingly.0 -
Hi Gaz, Thanks for that.
based on the wording someone would not need to inform the OR for example if they cancelled sky tv or something and were £70 a month better off or if they had a rent reduction of £200 as this is not an increase in income? when an IPA is determined it is based on your income vs your expenditures and this statement clearly states they only want informing of income change and not expenditure change? Loop hole???0 -
In the strictly legal sense it possibly is a loophole, but the chances of you being allowed a £70/month Sky package within your expenses is low - the allowance would normally be reduced to the basic package and if you wanted to pay more you would have to find this from other allowances that have been granted (e.g. groceries or holiday).
Presumably your rent will only decrease if you move - at that point the OR can (and probably would) ask for a new income/expenditure statement so the saving would have to be declared anyway.
Also, they can ask for a new income/expenditure form at any point during bankruptcy or while an IPA is in place.0 -
Hmm, Just a curiosity, this does not reflect my current situation :-) i would inform the OR. i just read of people scraping by and when they manage to change a few expenditures to be £50 a month better off they phone the OR and they take it off them!!! Crazy0
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