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| T O P I C R E V I E W |
| gjm68 |
Posted - 15 November 2010 : 19:09:33
I am currently not working due to illness. I have just gone bankrupt. I am on benefits so am not subject to an IPA. I am wondering what would happen if my health increases and I return to work.
I know I will have to inform the OR and will have an IPA setup. I am wondering if anyone could answer a couple of questions I have.
I understand the amount taken by the OR is subject to a financial statement. The financial statement I put of the bankruptcy application form is based on my current situation. As I am on benefits the figures are very low. If I went back to work will the IPA be based on this benefits financial statement? If I was working and had completed a financial statement then the figures would be higher (I would spend more on food, have a car, spend more on clothes, Christmas gift etc.
What will the OR regard as responsible costs? Is it based on having a minimum wage of say a $40,000 job?
My illness is mental health related. In addition to the treatment I am getting through my doctor I have found a treatment that helps. It is a holistic treatment and is not available on the NHS. If I go back to work will I be able to include the additional holistic treatment in my responsible costs?
I know the IPA is for 3 years and bankruptcy is 1 year. What would happen if 2 years into an IPA I have to give up work and go back on benefits? I am guessing the IPA will stop. Say then after another 3 months I return to work at a different wage. Will a new IPA be setup? But this will be in my third year by which time my bankruptcy will be over. As I will no longer be bankrupt will I have to start a new IPA?
I know there a few questions but I hope someone can help me.
Thanks
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| 5 L A T E S T R E P L I E S (Newest First) |
| Skippy |
Posted - 16 November 2010 : 11:14:33
Mine was for 36 repayments! I had to miss a month because my salary was reduced and I didn't know what the new figure would be. I was given the option of making the payment or missing it and tagging it onto the end.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| gettingoutofdebt |
Posted - 16 November 2010 : 09:05:21
quote:
Originally posted by gjm68
I know the IPA is for 3 years and bankruptcy is 1 year. What would happen if 2 years into an IPA I have to give up work and go back on benefits? I am guessing the IPA will stop. Say then after another 3 months I return to work at a different wage. Will a new IPA be setup? But this will be in my third year by which time my bankruptcy will be over. As I will no longer be bankrupt will I have to start a new IPA?
The IPA runs for a period of 36 months. If you earn enough for an IPA for the first 24 months then don't earn enough for the next 6 months then you won't make any payments during the 6 months but your IPA will now have run for 30 months. If you then had enough for an IPA then you would start paying again and only have 6 months remaining on the IPA.
The important thing to remember is that an IPA is for 36 months and not 36 repayments.
The guideline figures for expenses are available in a spreadsheet at www.insolvency.gov.uk/DocumentLibrary/Policy/Excel/Household%20Expenditur.xls |
| debtinfo |
Posted - 15 November 2010 : 22:57:58
well there are sort of guidelines, but the OR is free to depart from them any time they feeel that they should, up or down, so it is best just to put what you need, have a good think as some expenses dont come round every month so need to be evened out on a monthly basis if you see what i mean |
| gjm68 |
Posted - 15 November 2010 : 22:19:55
thanks for the advice.
One other question. Are there guidelines anywhere that show what the OR classes as reasonable? For example what is a reasonable amount for food for a month?
Are you allowed Sky TV and luxury stuff like buying computer games.
thanks |
| debtinfo |
Posted - 15 November 2010 : 19:21:24
The IPA is based on whatever the new circumstances are so it is likley that if ou go back to work you will have higher expenditure. What the OR does when you go back to work is to send a new income/expenditure form for you to fill in.
It is difficult to say about the hollistic treatment, the expenditure is about what is necessary and the OR would usually refer to your doctor to decide what is necessary.
If an IPA is set up and you stop work then basically the IPA is not stopped as such, the payments will be set to £0pm and those months count towards the 3 years, if your circumstance improve you would then restart payments still working towards the end point of 3 years. The new payments may be the same more or less than the original payments depending on your circumstances |
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