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John.jy
Starting Member
3 Posts |
 Posted - 20 April 2011 : 17:21:49
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In July 2009, at the Royal Courts of Justice, I was served with a bankruptcy order at my own request. At the time I was unemployed, living on Housing Benefit and without assets (obviously).
In January 2010 I secured a permanent job. At that point Moon Beaver contacted me and we ended up agreeing in about June 2010, after much fraught negotiation, with an IPA that will last 3 years in total.
When recently having lunch with a relative who advises at a CAB, he was perplexed as to why on the one hand I had a full Bankruptcy Order from June 2009 and on the other I was ALSO expected to repay part of the sum I owed on going bankrupt.
I am unable to explain to him why I have to pay this - so please can you help by explaining it to me. I would dearly love to stop paying Moon Beaver (obviously). |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 April 2011 : 17:31:05
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Hi and welcome.
If you had an IPA then you would have to pay this for the three years, it is nothing to do with your BR order - it is to do with your DI after your priority payments have been made.
You won't be able to stop until the end of your IPA or if you can't manage to afford the payments.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
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debtinfo
forum expert
2826 Posts |
Posted - 20 April 2011 : 18:10:17
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| I would point your reltive to the Insolvency Act 1986 and the Enterprise Act 2002, I presume that he/she does not work in the debt part of the CAB |
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John.jy
Starting Member
3 Posts |
Posted - 20 April 2011 : 19:36:24
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Thank you both
"is to do with your DI " Whats a DI?
I know, I know. You can't believe what a twit I am...
Thanks again.
John
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 20 April 2011 : 19:42:02
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Di is disposable income - it's what is left after your priority payments have been made.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
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John.jy
Starting Member
3 Posts |
Posted - 22 April 2011 : 12:06:49
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Humour the idiot (me, that is) one more time if you wouldn't mind:
Having had my bankruptcy discharged now, why do Moon Beaver have first call on my DI any more (presumably on behalf of the OR), and for how long will they or any other OR Agency have first call on my DI?
Thanks again
J
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debtinfo
forum expert
2826 Posts |
Posted - 22 April 2011 : 12:22:22
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Because if you start an IPA before discharge, then the IPA lasts for 3 years regardless of being discharged. It was part of the enterprise act 202 that set this up.
The reason for this is historical, Bankruptcy used to last for 3 years and the IPO (order as an agreemet was not available at that time) also lasted for 3 years. When the enterprise act came in they wanted to reduce the stigma of bankruptcy by reducing it (and the bankruptcy restrictins) to 1 year (and introducing early discharge) but they did not want to reduce the amount recovered to pay fees and creditors.
so Discharge was reduced to 1 year put the ncome payments remained at 3 years |
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Help with explaining IPA please
