Bankruptcy for Mum and SOA Help Please

FutureFreedom1 · 8 November 2019 at 2:48PM

Hi everyone,

So the OR decided there wasn’t enough money left, so they have said there will not be an IPA. However, my mum just received one through the post asking her to sign the IPA for 3 years for a sum of £0.00 per month. Is the usual please?

Thanks

debt_doctor · 8 November 2019 at 9:27PM

Hi,

I have not seen such a request before, and I suggest that you don't sign it. You do not need to confirm that there is no surplus for an IPA, and the 3 year bit concerns me.

I'd like to see the letter if you could post it (after removing all personal information).

DD

Lacemaker · 9 November 2019 at 8:53AM

Hi,

I hope that things are getting more settled for you all.

As DD says, a nil amount IPA is unusual.

However, I think there is a function to it.

As you know an IPA may only be presented during the period of Bankruptcy, so it gives the OR, or supervisor, a relatively short time frame in which to act .

Whilst they accept now that there is no justification for payment, they may believe that your DM's income or outgoings may be subject to change which could give rise to surplus in the future.

A signed nil amount IPA now means that the onus would be upon your DM to advise them of any such change for its duration.

L

FutureFreedom1 · 12 November 2019 at 10:59AM

Thanks DD and Lacemaker,

I have attached the letter and IPA here.

In case it’s relevant, my mum thinks the Local Authority haven’t granted a council tax holiday, as she is still paying CT to them, and so not to the OR.

If we don’t need to sign to confirm no surplus for IPA, what do we do with the IPA that’s been sent to my mum, what should we say to the OR please?

Yes, I was thinking maybe they are doing this, with the foresight to collect an IPA in the future if my Mum’s circumstances change. Makes it more stressful as it feels the BR is lasting 3 years rather than 1.

Thanks for your advice.

D7nFDHv

debt_doctor · 13 November 2019 at 11:08PM

Hi,

Attached??

In my view you should simply keep the IPA proposal until they contact you further, at which point you say " I don't need to confirm that I owe you nothing towards an IPA"

DD

FutureFreedom1 · 14 November 2019 at 7:12PM

Sorry let me try again

Minkym00 · 14 November 2019 at 8:31PM

This makes more sense. This IPA is for claiming council tax only. You mention above that your mum has still been paying her CT. Why? The OR should have included your Mum’s remaining CT liability in her debts so the balance should have been written off and she need not have made any further payments. You need to check they have done this.

My advice would be to go back the OR and say that, as they are only claiming CT on this IPA, they should reduce the term in the IPA to 4 months (December to March) and not 36. Otherwise with a nil value surplus IPA they are leaving her open to a potential surplus IPA in the future. This is NOT normal practise.

FutureFreedom1 · 15 November 2019 at 12:30AM

Hi Minky,

Thank you. Well, the OR said that she may be offered a tax holiday by the local authority and, if so, she has to pay it to the OR. They said to continue paying tax to the local authority until the local authority tells her not to. So that’s why she’s still paying council tax.

I didn’t think it seemed usually from what I’ve read on here.

Thanks

debt_doctor · 27 November 2019 at 8:53PM

Hi,

I have never seen the Insolvency Service do this before - and I most certainly do not like it.

They suggest that 'if' the council allow a payment holiday then the money should be paid to the OR instead. I think your mum might actually be better off paying the council.

It's very odd and Minky is quite right, this is a bankruptcy debt and the balance has been written off for the year.

The Insolvency Service have always had a 'hands off' approach as to whether BRs continue to pay their ongoing c/tax and rates based water - Whats next - A rates based water IPA?

My view remains not to sign the IPA. Minkys view on signing a new 4 month IPA is interesting and certainly far more protective.

Suggest to the OR that they can claim the monies back from the council if they feel able - doubt they will. There is no way in my view that the OR would push for an IPO via the court for this money.

It needs to be stated that the IPA is not agreed and so won't be signed so to avoid 'ignoring the OR' and potential suspension of discharge.

DD

FutureFreedom1 · 30 November 2019 at 3:13PM

Ok thanks very much. I will let my mum know your thoughts on this

Bankruptcy for Mum and SOA Help Please

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