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| T O P I C R E V I E W |
| xmas baby |
Posted - 02 August 2011 : 17:35:31
Good afternoon,
I am currently paying an IPA under the 'old' rules pre December 2010 as I was declared bankrupt in March 2009. My question is, I need to ask moonbeever to review my I&E as I will be moving in the next month or so and my rent has increased. Will my I&E be reviewed under the old system whereby they can take up to 70% of any disposable income or will they review it under the new system? I am sure I will still be under the old system but I just wanted to be sure.
Can anyone confirm this for me please?
Thank you
xmas baby |
| 4 L A T E S T R E P L I E S (Newest First) |
| xmas baby |
Posted - 08 August 2011 : 15:47:41
Just spoke to Moonbeever, who seemed very helpful and said they would send out the relevant forms to me. Provisionally they said that my IPA could be reduced by £130 to take into account my rent increase. He said it would need to go through the OR (or RTLU as they are now dealing with my payments), but he said if I have not heard anything by the time of my next payment, then I should just pay the reduced amount.
xmas baby |
| debtinfo |
Posted - 03 August 2011 : 19:09:50
these ones
31.7.162 Change of circumstances review leading to a decrease in the monthly IPA payment (IPA agreed before 1 December 2010)
Where an IPA agreed before 1 December 2010 is reviewed following a change of circumstances, it may be that the (former) bankrupt can no longer afford to make a contribution at the level set under the original agreement, but could make a payment which is less than the previous minimum contribution of £50 a month. Where this occurs, and the bankrupt can afford to make a payment of at least £20 per month (the minimum collection amount from 1 December 2010) the lesser amount he/she can afford should be accepted and the IPA amended accordingly.
a) Existing IPA contribution set at £50 (minimum collection amount prior to 1 December 2010)
If the amount of the monthly IPA payment was previously set at £50, when calculating the reduced amount the (former) bankrupt can now afford, he/she should be allowed to retain the £50 allowance in full from their surplus income. This has the effect that the decrease is applied to the amount to be collected under the IPA, not the amount left with the (former) bankrupt to meet his/her reasonable domestic needs. An example of this is as follows:
•Mr A was declared bankrupt and agreed (before 1 December 2010) an IPA of £50 per month from his surplus income of £100 per month.
•6 months after commencing payments under the agreement, Mr A has to reduce his working hours and consequently his income reduces.
•Following a re-assessment of his income and expenditure, his surplus income is now assessed at £80 per month.
•His new monthly payment under the IPA will now be £30, this is calculated by subtracting the minimum amount of surplus to be left with the bankrupt (£50 on review of an existing order), from the total amount of surplus income available (£80). •The agreement should be varied to reflect the reduced amount to be collected for the remaining 30 month term of the agreement (see paragraph 31.7.161 regarding variation of an IPA by written agreement). Mr A will still be left with £50 per month surplus available to him as before.
b) Existing IPA contribution greater than £50 minima
If the monthly amount collected under an IPA (agreed before 1 December 2010) was greater than £50, and on review the bankrupt still has sufficient surplus to pay an amount greater than £50, the percentage scale of the amount to be collected should be applied in the same way as when the IPA was originally calculated, using the 50 -70% contribution rate. The percentage scale income payments calculator for pre 1 December 2010 agreements, available on the ORBS intranet page, can be used to assist with the re-calculation. An example of this is as follows :
•Mr B was declared bankrupt, and had surplus income of £160 per month, from which he agrees to make payments of £80 per month.
•6 months after commencing payments under the agreement, Mr A has to reduce his working hours and consequently his income reduces.
•Following a re-assessment of his income and expenditure, his surplus income is now assessed at £120 per month.
•Using the percentage scale income payments calculator, the new monthly payment amount will now be £60 (50% of the total surplus), and the agreement should be varied to reflect the reduced amount to be collected for the remaining 30 month term of the agreement (see paragraph 31.7.161) regarding variation of an IPA by written agreement). Mr B will be left with £60 per month surplus available to him.
•In this scenario, if Mr B’s surplus income had instead been reduced to £90 per month, the new monthly payment amount would be £40, and Mr B would be left with the £50 per month surplus available to him as in example (a) above.
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| xmas baby |
Posted - 03 August 2011 : 10:02:58
Thanks for your reply, debtinfo,
Sorry not sure what you mean by 'transitional arrangements'. Can you elaborate please?
Thanks
xmas baby |
| debtinfo |
Posted - 02 August 2011 : 18:04:21
it will be the old guidelines but with some transitional arrangements |
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