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| T O P I C R E V I E W |
| frenchie1gsd |
Posted - 16 April 2008 : 12:45:32
Hi,
I have contacted the OR and they have confirmed that they will accept a full and final on the balance of my IPA in BR.
Rather than dig any more with the OR, does anyone know if, once you have settled the balance of your IPA, but still remain within the 36 months, does the IPA get closed and forgotten, or, are you still bound by the terms of the IPA, in that any change in slaray needs to be reported to the OR?
thanks |
| 4 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 17 April 2008 : 20:28:12
In my experience, the OR will accept a lump sum based on the eqivalent of future monthly payments, and then the bankruptcy case can be closed.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| JulianDonnelly |
Posted - 17 April 2008 : 12:52:41
As I said before it would depend under the terms of which they are accepting a full and final settlement, If your OR has accepted a full and final settlement then you would need in writing the terms of the acceptance.
I disagree with what was said regarding a family member introducing funds so long as this has supporting documentation to evidence where the funds have originated.
As your thread says it is an interpretation of the law and with a third party offering the funds, I can see no reason why your OR would not accept the settlement as agreed.
Although I have no knowledge of any cases where a full and final has actually been offered and accepted so if you decide to continue this course of action with your OR then make sure you document the transaction and their acceptance of it.
Let us know how you get on.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| frenchie1gsd |
Posted - 17 April 2008 : 11:00:20
I received the following reply on this topic from another group:
This is where interpretation of the law comes into play, the act infers three years (36 months) and as such the IS has interpreted this to mean
36 months of continuous IPA which as we all know can go up, down, be suspended or restarted, but can only run for 36 months.
That any lump sum can be treated as a single rise in the IPA payment for that month only, the only real exception is that pension annuities can sometimes be used as a payment into an IPA, where there would be insufficient income after the pension start for an IPA to continue, or that the IPA would be significantly reduced as a result.
There are NO other provisions in either the law or the manuals that allow for any other type of lump sum payment
An IPA can be enforced through the courts which then locks the IPA into an IPO for a full 36 month duration. We are allowed IPA's because they are cheaper and simpler to administer, but a lot of people still get IPO's because they object to the IPA's.
It has been known that the OR will go for a lump sum available after discharge as an After Acquired Asset, and this is just added to the income pot only
If your IPA was a high value one and suddenly a family member were to say here is the money to pay it off, it could very easily lead to the OR reopening your case (and suspending your discharge) as they would then go back more years to see if you had had this money before hand (hidden assets)
Other than Pension Annuities THERE ARE NOT KNOWN CASES OF OR'S OR TRUSTEES ALLOWING THIS. That is where the clue is - simply it does not happen.
The Insolvency Service is NOT a commercial company, and as such do not make commercial decisions, they follow quite strict legal guidelines on what can and cannot be done, and are not permitted to allow one off's, as this then set legal presidencies which can have major judicial ramifications at a later date
If you are in work and currently paying an IPA, then the IS would be negligent in its duties if it accepted a F&F for an IPA, as then it would not be getting the maximum return for the creditors as required under law. And if they allowed this to happen it would ultimately come back to haunt them as a legal presidents will have been set!!!!
So I still cant see this happening, and should the offer be made tot he OR then I can see it going wrong (unless it is a pension annuity)
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| JulianDonnelly |
Posted - 16 April 2008 : 13:52:18
It would depend on the terms in which they accept the full and final settlement.
If you are introducing funds to settle this from a third party and then using your disposable income to repay this debt then if the OR is happy to accept this then the IPA would be deemed as completed without the need for the 3 year term.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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