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moodybluetwo
Junior Member
156 Posts |
 Posted - 15 January 2011 : 10:16:49
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Just seen this on the Insolvency website..it looks like it has been updated.
Following an assessment of the real disposable income (the income remaining after all expenditure necessary to finance the reasonable domestic needs of the bankrupt and his/her family has been taken into account, see paragraph 31.7.23), where the initial assessment is made on or after 1 December 2010 (regardless of the date of the bankruptcy order) and the bankrupt has surplus income of £20 or more, the full amount of this surplus income should be sought by way of monthly payments under an IPA (or an IPO if an IPA cannot be agreed). As the official receiver is seeking to recover the full amount of the surplus income, it is essential to ensure that each individual’s circumstances are carefully examined and all available information has been taken into account with regard to the individual's income and expenditure. Reference should be made to the guidance figures available in the HES which provides average expenditure figures for various household combinations and also Part 3 regarding income to be considered and Part 4 regarding expenditure to be considered.
Here is the link
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part2/part_2.htm
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 15 January 2011 : 10:48:58
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It's good that the OR will check that the bankrupt has included all essential expenditure. Sometimes people forget things that are paid annually or even presciptions etc. The outgoings section of the SOA doesn't exactly make it easy for people.
there are definitely some bankruptcy assist firms that put all the maximum figures allowed in, I reckon that is why a lot of people go to them.
It's important that anyone going bankrupt puts down exactly what they spend, even if it's more or less than the guidelines.
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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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 15 January 2011 : 12:16:59
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Having sat in on 5 OR interviews since the new "interpretation" of the rules it is clear that most of the offices are very dubious about the implementation of the rules for an IPA.
In reality I fully expect the OR to be inundated with variations every month .
For example a rise in petrol costs, bad weather ( therefore higher heating costs ) and increase in VAT, interest rate rises which mean raised mortgage costs, etc. You may even have a long journey to make for work ( training course etc ) which means a change in real monthly costs.
All these can vary each month and if the allowed expenditure is going to be so tight it seems only fair that everyone should ask for a modification each and every month. In the early days the OR will probably start to pursue an Income Payment Order rather than an agreement,but having spoken to several District Judges they all seem to be shocked by the tight interpretation and are likely to be reasonable.
Bankruptcy is not designed to be a process of crucifiction, rather a legal process of exchanging ones assets for ones debts, allowing you to have a new start.
In reality these changes are likely to have a massive impact on the less well off unless people push back and stand up for themselves.
I fully expect the IPA rules to be changes again this year when the administration costs are proved to be uneconomic
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 16 January 2011 : 11:23:50
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I fully concur with Paul on this, as my previous OR fully expects to be attending court more in relation to applications for IPO's, which will only clog up the system more, and having the opposite effect of increasing admin costs, when the IS is trying to raise more.
Watch this space!
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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xmas baby
Average Member
537 Posts |
Posted - 17 January 2011 : 16:21:38
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Good afternoon,
I have been in an IPA since July 2009 and I am now half way through the 36 months of payments. I understand that recently there have been changes in the way the IPA is implemented and I wondered if the new rules would also apply to those IPA's undertaken previously, such as mine. I would like to send a new I&E to reflect my changes in expenditures, but I am worried they might now take any surplus income that I currently have. Can anyone advise please.
Thanks
xmas baby |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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xmas baby
Average Member
537 Posts |
Posted - 18 January 2011 : 09:57:52
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| Thank you for clarifying, Viki. |
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New rules after December 2010
