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    • haggis0073
    • By haggis0073 29th Nov 17, 4:09 PM
    • 160Posts
    • 119Thanks
    IPA Question
    • #1
    • 29th Nov 17, 4:09 PM
    IPA Question 29th Nov 17 at 4:09 PM
    a curious question regrading IPA's, would be interested in what people know/think

    For example, If someone earns 500 per month (wages), and also recieves Benefits of 500 per month, that makes 1000 per month

    So, if that person has 500 expenses and leaves him with 500 left over each month, how does the OR work out an IPA

    Not sure if this is correct but I am under the understanding that IPA amounts can only come from non benefit income, so could the OR say the above expenses figure are going to come from benefits and therefore make you pay an IPA from non benefit income (in this case 500 per month)

    Or would they say his 500 expenses will come from non benefit income and therefore no IPA will be sought (due to the surplus being benefits income)
Page 1
  • National Debtline
    • #2
    • 29th Nov 17, 4:43 PM
    • #2
    • 29th Nov 17, 4:43 PM
    Hi haggis0073

    The following excerpt from the Insolvency Service technical manual should cover this query:

    31.7.41 State benefit income to be included where bankrupt also receives non-benefit income
    The official receiver should not automatically discount the possibility of obtaining a contribution from a bankrupt who is in receipt of benefit. The Service has obtained legal advice that once a benefit is paid to an individual, it may be considered to be income and so falls within the scope of section 310(7) of the Insolvency Act 1986. Whilst this confirms the possibility of obtaining an IPA/IPO where a bankrupt is in receipt of state benefits, as a matter of policy as stated at paragraph 31.7.40, the official receiver should not seek an IPA or IPO, where the bankrupt's only source of income is state benefits.

    So, the short answer is that it is perfectly possible that an IPA could be sought in the scenario you described.

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