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rich1972
Starting Member
United Kingdom
33 Posts |
 Posted - 13 April 2011 : 23:39:22
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| can an IPA/IPO cost more than the original bankruptcy debt? in that case should i consider a fast track IVA? anyone had one of those? me and the wifes debt only added up to app 20K but lots of creditors and we needed debt relief so opted for BR (best thing to do as agreed by Legal services commission...have no assets) any answers gratefully recieved thanks |
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Niobe
Administrator
United Kingdom
4590 Posts |
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 14 April 2011 : 08:11:01
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| thanks i am bankrupt did it last week so if i got stung for a big i p a then is the fast track i v a an option? I'm just thinking that i wouldnt want to pay an i p a that after 3 years could possibly be a lot more than what i owed. Can this happen? And where would the surplus go? I'm not too keen on the idea of subsidising other peoples bankruptcy!or would i have an i p a for less than 3 years? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 14 April 2011 : 08:19:53
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An IPA will always be for three years as far as I am aware.
You perhaps need to seek further advice about a fast track IVA as I have limited knowledge of this.
Do you have DI of over £20 a month?
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 14 April 2011 : 09:00:08
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| yes have some d i think i worked out my s o a a bit wrong an also seems like our child tax credits will be 2 hundred guid a month more as i think we may have been paying off an overpayment. I just worked it out from the bank statement. We also get d l a for our son and my wife gets carer allowance. She went bankrupt also. Will they include everything? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 14 April 2011 : 10:54:15
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As far as I am aware everything will need to be included for income purposes but of course you can offset some of this to pay necessary expenses for your son.
Something you need to sort out with your OR.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 14 April 2011 : 15:03:56
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| then i can only hope the o r is as nice as the court staff :) thanks |
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debtinfo
forum expert
2826 Posts |
Posted - 14 April 2011 : 17:54:37
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The IPA is normally for 36 months, if you got to the point that you had paid all the debts plus interest plus all of the fees then the IPA would stop as you had paid everything. Needless to say this rarely happens
Also almost no one does Fast track IVA's |
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 14 April 2011 : 18:29:28
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thanks debtinfo my actual debt wasnt that much, but me and my wife went BR together, so really it was a combined debt of app 20K which to us is a lot!! we have 4 dependant kids im earning about 40 pounds a week more than min wage and my wife gets carers allowance as one of our sons gets DLA, just this week i found out our child tax credit will be going up, about 44 pounds a week more, i did our SOA working out from what we were having paid into the bank, seems like we were paying back an overpayment so the figures will be wrong, should i let the OR know right away as we havent had the interview yet? might be a few weeks for that yet
so i just wondered about the IPA that they may work it out as a big payment and i would actually prob pay more than i owed...do they work it out over a 3 year period or just take the D I and work out houw many months that would take to pay and adjust the period of the IPA?? thanks |
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debtinfo
forum expert
2826 Posts |
Posted - 14 April 2011 : 19:13:08
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yes you should tell the OR of any changes of income.
They would normally just set the IPA as 36 months from the start but would stop it if you got to the point where you paid everything off.
If you have £20,000 of debt that would take payments of £555 pm over 36 months just to pay the initial debt never mind interest and fees, i think that would be very unlikely on your income |
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 14 April 2011 : 19:26:33
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| thanks...my actual debt is less than half of the 20K my wifes debt was more, but it is right that each bankruptcy case is seperate? ie my debt is mine and my wifes is hers? or am i liable to pay her debt? i dont think so from what ive read, so it would be feasible that i would have enough DI to actually pay it all off? and therefore my wife (unemployed) woulndt have to pay an IPA if the IPA i get bought our DI to below the allowed expenditure? if you get what i mean :-) sorry if i'm causing you confusion!! thanks...and thank god for forums like these it must have been a nightmare going BR before the internet...or perhaps its better to be in the dark and not worry about things!! |
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debtinfo
forum expert
2826 Posts |
Posted - 14 April 2011 : 19:41:33
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| ahhh right, i get you, you have a small amount of debt, but all of the IPA payment, yes they are kept separate, but even still with interest and fees? |
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 15 April 2011 : 06:52:24
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| yeah i did read the fees would add up to app 2000 but i dont know how much the interest would be...thats why i thought about the fast track IVA...i thought the interest would stop as the debts are discharged by the BR, but then i guess the fee to who you actually pay the money too would be added...thanks |
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rich1972
Starting Member
United Kingdom
33 Posts |
Posted - 15 April 2011 : 06:56:55
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just dont know what to expect with regards to the IPA i know i will get one, but i need to add stuff as i didnt qualify for working tax credit this year so i'll have to pay prescriptions optical dentist etc
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 15 April 2011 : 07:14:27
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You need to put these things down - as regards prescriptions, have you thought of getting a prepayment certificate? Costs just over £100 a year, payable monthly interest free. For that you can have as many prescriptions as you like.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
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Topic |
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can IPA/IPO cost more than original bankruptcy debt?
