My surplus income is about £500 but this is only because of tax credits/child benefit and csa which will all end in a year when my younger son leaves school.My income will not cover the outgoings if just salary.Will I get an IPA?
If you have proof that the extra payments such as tax credits etc are going to end at the end of the year then the OR may hold back from an IPA until it is all clear and he/she can reasses your income again. The bankruptcy would probably last a year though rather than ED
An Income Payment Agreement lasts for 3 years and I believe that you would receive one because of the funds they could collect between now and December.
The good news is that the IPA will be revisited when your situation changes and will either reduce or probably stop completely after the changes.
An IPA normally takes 2-3 months to set up from the date of the OR's interview so if you were declared BR in May you probably wouldn't make the first payment until July/August.
If you have £500 surplus then you would pay 70% (£350) of this as an IPA so if this IPA didn't start until August you would still £1750, which would probably be worth the OR's while collecting. Part of the IPA goes to the OR to cover their fees so they are quite eager to collect any available monies.
Once your DI drops below £100 the IPA would stop so without the CSA, etc. in Dec you may not end up making any payments then.
The IPA is for a period of 3 years so even though the IPA could stop once the CSA payments stop, if your DI increased to £100 or more at any point in the 3 years of the IPA you would then start to make repayments once again.
My surplus income is about £500
Posted - 07 May 2010 : 00:09:26
