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synaesthesia
Junior Member
233 Posts |
 Posted - 09 August 2008 : 16:38:09
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Hello again folks - hope everyone's well :)
Bit cheery myself for some reason, no idea why!
20th Century DJ syndrome, I think.
Anyway, could someone please be so kind as to let me know the vague ins and outs of BRUs, BROs and IPAs? I can't seem to find any specific information about them and would like a human being (one of you kind people :) ) to explain them in normal terms for me, so I can perhaps understand what is given in what situation etc.
Many thanks :) |
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BankruptC
Senior Member
1030 Posts |
Posted - 09 August 2008 : 17:03:24
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Hi there,
I'm by no means an expert (just about to go BR myself) but I've done lots of reading and asking of questions so I'll have a go at answering yours!
A BRU is a Bankruptcy Restriction Undertaking and a BRO is a Bankruptcy Restriction Order. You can get one of these if the OR deems you to be to blame in some way for your BR, eg if they feel you took out credit with no real prospect of repaying it. There are various other reasons for getting these and you can do a search for them at http://www.insolvency.gov.uk/databases/ddirector/brobrusearch.htm to give you more of an idea. Basically you are still discharged from bankruptcy after the normal 12 months, but for the term of the BRU/BRO (from 2-15 years depending on severity of misconduct), you are still bound by the restrictions of bankruptcy, ie not being able to hold certain positions etc. The difference between a BRU and a BRO is that if you agree to the OR's view, you will be given a BRU and it could be cut shorter because you agreed, whereas if you don't agree, the OR will take it to court to enforce it and it becomes a BRO, and will not be cut shorter.
An IPA is an Income Payment Agreement (I think!!), but it is basically an agreement you make with the OR that you will make repayments to your creditors, via the OR, each month for 36 months, PROVIDING you have more than £100 disposable income each month(surplus after your monthly expenditure). When you fill in your Income and Expenditure on your SoA, you will claim an allowance for each thing you spend monthly (utilities, council tax, rent/mortgage, food, clothes, even a modest holiday allowance!) and then if you have more than £100 remaining, you will pay a percentage as an IPA to your OR who in turn will pay your creditors (and their own fees). The percentage depends on the amount of your disposable income, but varies from 50-70%. For £100 disposable income, foe example, you would pay 50%, so £50, but for much higher amounts, you would pay 70%. You will pay this amount for 36 months, but it may go up or down if your circumstances change (pay rise, made redundant etc). If you have less than £100 disposable income per month, however, you will not pay an IPA at all.
I hope that helps a little, and I'm sure an expert will fill in any gaps or correct me if I'm wrong!
Take care and good luck with it all,
CG. x
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John
New Member
United Kingdom
73 Posts |
Posted - 09 August 2008 : 17:16:50
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Hi
I would say that CG's explanation covers all the basics with just one exception.
As with a BRU you do not have to agree to an IPA proposed by the OR. But if you don't, it goes to court. If the judge agrees with the proposal you would get an IPO instead (Income Payment Order).
Well done CG - you'll be on the expert panel before you know it!!!
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 09 August 2008 : 17:21:49
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Oh I don't know about that, John. I still have a few more million questions up my sleeve to bombard you with before we get to that stage! 
CG. x |
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zamfir
Junior Member
303 Posts |
Posted - 10 August 2008 : 14:07:30
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I didn't put a holiday allowance on my SoA, have I missed the boat now? (OR interview on Thursday).
If an IPA/O is not sought by the OR (due to little disposable income), would you have to declare a promotion/pay rise after your discharge (and possibly go into an IPA/O then)?
T x |
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John
New Member
United Kingdom
73 Posts |
Posted - 10 August 2008 : 14:26:34
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Hi zamfir
not necessarily. An IPA can only happen with your agreement so at interview you could explain this error and ask for it to be added. The amount you can put forward depends on the size of your family.
For a family of 4 £60 - £80 per month should be accepted.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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zamfir
Junior Member
303 Posts |
Posted - 10 August 2008 : 14:33:20
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Hi John,
Thenks for your reply - My SoA currently shows about £50 disposable income, so don't think the OR would try and get a IPA. I just wasn't sure if an IPA could be sought after I get discharged in 1 years time - if I got a better job (as an IPA would run for 3 years) etc.
Regarding the holiday allowance, I'm single, so will ask the OR to take a £20 monthly holiday allowance into consideration.
I'm guessing my £24.75 month gym membership (should I wish to continue it) would have to come from my disposable income? |
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John
New Member
United Kingdom
73 Posts |
Posted - 10 August 2008 : 14:41:59
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Hi
the gym membership will certainly be excluded by the OR but yes you could continue it from the DI you get to keep, raising your DI to £75 less the holiday allowance you're down to £55.
Re the possibility of a new, and better paid job, the IPA must be in place before your discharge and cannot be sought by the OR after discharge.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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zamfir
Junior Member
303 Posts |
Posted - 10 August 2008 : 14:55:27
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| Thanks very much John, I'll let the forum know how the OR Interview goes on Thursday. |
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BRU, BRO, IPA etc
