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 Income Payments Agreements, Income Payments Orders
 Income Payments Orders
 IPOs REVIEW,VARIATION AND DISCHARGE PART 11
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Debtdummy
Junior Member



United Kingdom
267 Posts

Posted - 23 March 2007 :  17:47:37  Show Profile  Reply with Quote
Part 11 - IPOs - REVIEW, VARIATION AND DISCHARGE OF THE ORDER

December 2006

31.7.75 Review, variation and discharge

An IPO can only be varied, reviewed or discharged by order of the court. Rule 6.193 of the Insolvency Rules 1986 [note 1] permits the trustee or the bankrupt to apply to the court to have the terms of the order varied or discharged. The official receiver when acting as trustee will not generally require the bankrupt to make application to court to suspend or cancel an obligation to make payments under the IPO.

The circumstances in which the requirement to apply to court for the IPO to be varied are often where the individual subject to the IPO has defaulted in making payments without due cause (see paragraph 31.7.74).

Another circumstance which may require the official receiver/trustee to make an application to court to vary the IPO would be where the bankrupt who is subject to an IPO is in receipt of a payment such as a pension lump sum (either before or after discharge) which can be held to be within the definition of income and can be recovered under an IPA/IPO (see also paragraph 31.7.11). The bankrupt's monthly income may change as a result of receiving his/her pension (as opposed to remaining in employment) and the official receiver/trustee should consider this when seeking to vary the amount to be claimed under the IPO. To ensure that creditors receive the full anticipated amount under the original order it may be necessary to adjust the bankrupt's payments , which could include making a one off payment from the lump sum to cover the amount still outstanding within the term of the original IPO and then vary to nil the amount of contribution for the months remaining within the original term of the IPO (any variation of the payment terms under the IPO must remain within the period of three years from the date the IPO commenced) .

To apply for the terms of the order to be varied or for the order to be discharged, a statement is required to be filed setting out the grounds of the application. Where the official receiver as trustee makes the application he/she is required to make a formal application to the court (form IPORAV). The court may, if it considers "no sufficient cause is shown for the application", dismiss the application, but must give the applicant an opportunity to attend for the hearing and for which the applicant must receive at least seven days notice.

Where the application is not dismissed, at least 28 days before the hearing the applicant must send notice of the venue, with a copy of the application and a statement of grounds to the bankrupt or trustee (whichever of them is not the applicant). Not less than seven days before the hearing the trustee may file a report at court setting out any matters to be drawn to the court's attention. A copy of any such report must be sent to the bankrupt. If, as a result of the hearing the income payments order is varied, the official receiver, as trustee, should send sealed copies of the order to the bankrupt and the payor, if other than the bankrupt. Where collection agents have been instructed, a copy of the order should be forwarded to them so that they can act on the terms of the new order or close their file.

Where an insolvency practitioner has been appointed trustee, and variation of an IPO is required due to the bankrupt's default in making payments or similar, the official receiver should decline to deal with the application to the court for variation of the order if requested by the insolvency practitioner trustee, as such applications form part of the trustee functions.

[Back to Part 10]


All I have left is my sense of humour.

ripski
New Member

United Kingdom
90 Posts

Posted - 29 March 2009 :  19:54:30  Show Profile  Reply with Quote
Now in a panic re this. I intended submitting BR petition this week. I am desperate. I have 28000 debt and mortgage 190000 House up for sale a 205000. A few yrs ago should have been 215,000 Intention was to clear all debts with the house but no way now and likely to go negative equity. I have the opportuntiy to retire next yr with a lump sum of 60,000 and intended to go halves with partner on something. i would then at least have somewhere secure to live in retirement. As there is no way now to clear the debts, I saw an IP locally who advised BR and delay retirment for 12 months as the best option as this would protect my lump sum. I was all geared up to start the process this week and beleive me I have been to hell and back and despair re the shame . Posts re this now suggest that the OR may still want the lump sum and I dont know where to go for advice onthis re the liklehood B xxxx H xx The bankers get paid off for failure with massive bonusses. Advice and/or reasurance desparately needs

ripski1
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Reviva UK
Advanced Member

United Kingdom
2452 Posts

Posted - 29 March 2009 :  20:29:53  Show Profile  Reply with Quote
Hi

I would strongly suggest you take advice from one of the experts here on the forum.

There is a similar post on the IVA forum and there is certainly a significant risk that if you qualified for an IPA ( you only get an Order rather than and Agreement if you don't play ball) then t=your lump sum is at risk.

get advice, review your position with an expert and get some peace of mind.

Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com

Real People ..... Real Debt Solutions
www.revivauk.com
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ripski
New Member

United Kingdom
90 Posts

Posted - 29 March 2009 :  20:52:14  Show Profile  Reply with Quote
I thought that I had seen a local IP expert who advised this BR route as ater 12 months my lump sum from pension would be OK. I also thought that I had put loads of posts re this on the IVA forum and it is only now that this risk is cropping up but maybe I wasn't clear enugh about my position

ripski1
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Reviva UK
Advanced Member

United Kingdom
2452 Posts

Posted - 29 March 2009 :  20:55:12  Show Profile  Reply with Quote
No harm in getting a second opinion.



Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com

Real People ..... Real Debt Solutions
www.revivauk.com
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