I am into the last year of my IPA and have made regular monthly payments. Due to sudden loss of income due to a failure of a major client, I asked to reduce my monthly payment. The trustee has agreed but stated that the shortfall will have to be met either by increasing payments before the end of the term or by extending the term. I do not think the trustee has the right to demand this because one is required under the Insolvency Act only to pay the excess over reasonable living expenses for one's household, during the 3 year period. Has any one a comment to make?
I must admit that this is very strange. If you cannot afford to continue making payments into an IPA, then the arrangement should lapse. I have never heard of the OR attemptong to increase the length of time of an IPA to make up any shortfall. I would question this with the OR.
All the best
John Blackadder Bankruptcy365
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk.
When I had a pay cut I missed a month as I didn't know how much my take home pay would be. This was added on to the end of the IPA. I thought it was strange but as it was only an extra month I didn't query it, but in your case I would definitely ask for an explanation.
This may apply in your case...big al is the one to ask.
31.7.182 Revised payments - period of payment Whilst any revised terms for repayment of the arrears may continue beyond the date of discharge, they cannot extend beyond the period of three years from the date the IPA [note 3] originally came in to force or the IPO was made [note 4].
Varying or extending an IPA
Posted - 18 June 2011 : 18:23:35
