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T O P I C R E V I E W
feather
Posted - 30 June 2008 : 10:35:22 Hi,
I have 1 question regarding the 'fee' that you may need to pay for 3 year if you incomings exceed your outgoings by a minimum of £100. Is this calculated before or after they declare you BR? At the moment I pay approx £1000 in debt repayments per month, so if they declare me BR then that money will be freed up and I have read they can take 50-70% of that?? Please can some one confirm to me what happens because that doesn’t sound great at all! Thanks a lot
4 L A T E S T R E P L I E S (Newest First)
JulianDonnelly
Posted - 30 June 2008 : 15:39:28 Great advice guys!
Posted - 30 June 2008 : 11:40:19 Thanks for the info
Suzanne
Posted - 30 June 2008 : 10:55:51 Hi feather
I beleive what you are refering to is an Income Payments Agreement, whereby you pay 50-70% of your surplus income to creditors. This is calculated by deducting all your expenditure from your income (excluding debt payments as after bankruptcy you have none).
Posted - 30 June 2008 : 10:55:32 Hi This is called an IPA and it is calculated by the official receiver after bankruptcy.
It is a set amount you have to pay for 36 months out of any surplus income.
So if you earned £1200 a month and after paying all your bills including food shopping and you are left with say £200 they will ask you to pay a pecentage of that amount.
If over the course of the 3 year IPA your circumstances change this amount will vary to reflect any increase / decrease in your finances.
