IPA Bankruptcy
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GillsMan7
Posts: 246 Forumite
Hi, my query is similar to the one in this thread, but slightly different.
I was made bankrupt in early September 2017 and was discharged a few weeks ago after exactly a year; it was relatively smooth and I'm not subject to a BRO or anything like that. I was at first given an IPA of £45 per month, and this was reduced in January 2018 to £25 per month, and in June 2018 the IPA was removed entirely when my circumstances meant I could no longer afford it. Here's what I was told by the people I told my IPA to in June:
This appears contrary to the requirement for an IPA to be agreed before discharged from bankruptcy. And does this mean that if I have a new job in, say, a year's time I'll have to advise them of my change in circumstances and essentially hand over any extra pay. I'm really keen to find out what the deal is here. Thanks!
I was made bankrupt in early September 2017 and was discharged a few weeks ago after exactly a year; it was relatively smooth and I'm not subject to a BRO or anything like that. I was at first given an IPA of £45 per month, and this was reduced in January 2018 to £25 per month, and in June 2018 the IPA was removed entirely when my circumstances meant I could no longer afford it. Here's what I was told by the people I told my IPA to in June:
The Official Receiver has reassessed your instalments and confirmed that you do not have surplus funds to continue with your Income Payments Agreement (“IPA”). The Official Receiver has therefore agreed to suspend payments under your IPA with immediate effect.
Please note that your Official Receiver can require you to re-start your IPA payments if your circumstances improve during the full term of the agreement. You are required to inform the Official Receiver of any increase in income within 21 days of becoming aware of it. This requirement remains until 26 September 2020.
If we haven’t heard from you by the 28 June 2019 an Income Payments Order Questionnaire (“IPOQ”) will be sent to you, in order for your circumstances to be reassessed.
This appears contrary to the requirement for an IPA to be agreed before discharged from bankruptcy. And does this mean that if I have a new job in, say, a year's time I'll have to advise them of my change in circumstances and essentially hand over any extra pay. I'm really keen to find out what the deal is here. Thanks!
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Comments
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Yes you have an IPA, which you were paying. From the date you signed the IPA you have 3 years from that date. If you’re not paying any surplus because your income isn’t high enough that’s fine, but every time you get a new job/payrise within that 3 year period you must inform them and they will take the surplus from you.
26th of September 2020 is when you are released from your IPA and allowed to keep all of your salary again.
If you don’t inform the OR of your increase in salary etc they can impose a IPO which takes it directly from your salary without your consent - a court order.0 -
...This appears contrary to the requirement for an IPA to be agreed before discharged from bankruptcy. And does this mean that if I have a new job in, say, a year's time I'll have to advise them of my change in circumstances and essentially hand over any extra pay. I'm really keen to find out what the deal is here. Thanks!
Your IPA WAS agreed before discharge - its just the amount has been varied. If the OR had not agreed an IPA at all before discharge then you wouldn't have one. However, unfortunately you do have one.
Yes - you will have to advise them when/if your income changes - but your expenditure may have gone up too so keeping an eye on the balance of income /expenditure until 26.09.20 is the best way to look at it.0 -
Hey, sorry for the delay in replying. Just wanted to thank both posters for their responses. It's obviously not what I wanted to hear, but I accept that that's the situation so thanks for letting me know.0
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