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CAF
Starting Member
United Kingdom
5 Posts |
 Posted - 12 January 2011 : 05:15:46
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Hi
This is my first post, it's gone 4 in the morning and I can't sleep for worrying.
I will try to keep this short. I'm just hope that someone can help or at least provide me with some answers.
I went banckrupt about 8 months ago. At the time I was not working but shortly after I got a job and informed the OR via phone during the chat he said That I might be required to sign a Income Payment Agreement and he would do some calculations and send out a document for me to sign and if I didn't agree with it I could discuss it with him.
Nothing came other then a form for me to sign giving them permission to release information about tax rebates etc. I was abit worried as it also asked for details of my employer. So I rang the OR and asked if they were going to contact my employer and tell them I was bankrupt if so would they let me tell them first. As I was still in my probation period and did not want them to know but if they had to know I wanted them to hear it from me as I carry about £5k worth of stock and they had to issue me a company credit card. Anyway, I was told no one was going to contact my employer unless an Income Payment Order was made with attached earning. So sent the form back.
I had a problem with my tax one month no tax the taxed for 2 months then no tax for November the just before Xmas wham a massive deduction for tax almost 60% on my income. When I contact my HR department they told me I needed to contact the tax office regarding my code. I did this and was told I had a NT Code which ment I would pay no tax until the end of the tax year. HR Sorted everything out and I have had the best xmas in years and decide to move to a new rented property and used the tax windfall for deposit, rent and new furniture. One I moved I contacted the OR and gave them my new address. Bare in mind this is 8 months into my bankrupt with another 4 month before my AD. After telling the OR of my change of address I now have 2 letters from them one is the same tax letter giving them permission to obtain information on my tax and the other is a IPA for £175 per month for 36 mths.
Questions
Why has it taken so long for them to send me the IPA?
Can I pay the total 36x£175 in one go?
Is there any chance of having the term of increase in income removed from the IPA?
Do I have to pay back the tax rebates and tax which I have been given?
What happens if this is not resolved in the 4 mths left to my AD?
Sorry I knew it would be long winded
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CAF
Starting Member
United Kingdom
5 Posts |
Posted - 12 January 2011 : 11:38:17
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I have check the Individual Insolvency Register
to see if there is any info and this is the Footnote The bankrupt’s Discharge Date is in accordance with Section 279(1) of The Insolvency Act as amended by Section 256 of The Enterprise Act 2002. Can any one tell me what this means please. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 January 2011 : 12:28:58
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Hi and welcome to the forum. I'll try and answer your questions in order.
I don't know why it has taken this long for the IPA to be put in place. However, the OR has until you are discharged to do this.
As far as I am aware you cannot pay the full amount in one go.
Any tax and tax rebate received during your BR would need to be paid to the OR.
I'm not sure what will happen if it's not resolved, hopefully someone else will be able to advise.
That is standard wording so nothing to worry about.
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! |
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CAF
Starting Member
United Kingdom
5 Posts |
Posted - 12 January 2011 : 13:34:01
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Thanks for your reply Tracey
I have been on http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm to find anwsers but still not understanding this IPA.
To find answers to my questions.
In regards to;
"Can I pay the total 36x£175 in one go?" I found
What happens if I receive a lump sum while I am paying an IPA or IPO?
You may be asked to make a one-off payment from the lump sum to cover the amount left to pay on the IPA or IPO. This can happen even if you are discharged from bankruptcy.
The amount claimed will vary, depending on whether you are discharged when you receive the lump sum and the time left to run on the IPA or IPO.
http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm#4
It also states thats
The payments will usually continue for three years.
http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm#2
Which suggests I can negotiate the terms of the agreement by asking for the increase in income to be taken out or reducing the 36 mths. I have a good chance of being promoted within the next 3 years. Why would I take a promotion if it means additional pay will be taken. Who in thier right mind would take on more and get paid less.
I am so mad with myself firstly by getting into this situation. I wish I could apply to be un-bankrupt. Is there an appeal process? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 12 January 2011 : 14:05:30
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Only my advice, but, I would take the promotion. After your 36 month IPA, you will have more money for yourself and you are higher up the ladder.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 January 2011 : 14:31:57
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I agree with Viki. There is no point in losing an opportunity to further your career just because you have an IPA.
The IPA only lasts for 36 months (which go very quickly!) and you may never get the promotion opportunity again.
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! |
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CAF
Starting Member
United Kingdom
5 Posts |
Posted - 12 January 2011 : 17:45:44
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I understand what you are saying and will take it on board... but my questions remain.
1. Has anyone paid a lump sum to pay off the IPA?
2. Has anyone been able to have the terms on the IPA reduced or amended?
3. What happens if this is not resolved in the 4 mths left to my AD?
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 January 2011 : 20:56:39
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I don't know of anyone who has paid off an IPA in a lump sum.
When I had a pay cut my IPA payments were reduced, although I still had to pay for the full 36 months.
The OR can apply for a suspension of discharge, but this is only done in extreme cases where someone hasn't complied with the OR.
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! |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 13 January 2011 : 00:03:04
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Hi CAF,
in answer to your questions:
1. No you can't pay a lump sum in respect of the IPA( but once you've been paying one it may be possible to pay a lump sum in respect of the balance), in your respect that would be £6,300, generally if that was the case the OR can take a lump sum and an IPA, that is if you do have that type of money available.
2. If your circumstances change(up or down) then an IPA can be revised either way.
3. If the OR believes they aren't getting anywhere and believes that there is a realistic chance of an IPA then they can apply to the court for a SOD(suspension of discharge) as I did on several occasions, as remember an IPA can only be obtained whilst an undischarged bankrupt, once you're discharged an IPA cannot be obtained.
The reference to the lump sum, is if you are paying into an IPA, not prior to starting.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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CAF
Starting Member
United Kingdom
5 Posts |
Posted - 14 January 2011 : 00:36:59
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Thanks Al for the advice and thank you all for your support.
If I get any results i'll let everyone know.
Take care
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Why has it taken this long?
