I have 1 question regarding the 'fee' that you may need to pay for 3 year if you incomings exceed your outgoings by a minimum of £100. Is this calculated before or after they declare you BR? At the moment I pay approx £1000 in debt repayments per month, so if they declare me BR then that money will be freed up and I have read they can take 50-70% of that?? Please can some one confirm to me what happens because that doesn’t sound great at all! Thanks a lot
Hi This is called an IPA and it is calculated by the official receiver after bankruptcy.
It is a set amount you have to pay for 36 months out of any surplus income.
So if you earned £1200 a month and after paying all your bills including food shopping and you are left with say £200 they will ask you to pay a pecentage of that amount.
If over the course of the 3 year IPA your circumstances change this amount will vary to reflect any increase / decrease in your finances.
Regards
Edited by - motorcycleman on 30 June 2008 10:56:30
I beleive what you are refering to is an Income Payments Agreement, whereby you pay 50-70% of your surplus income to creditors. This is calculated by deducting all your expenditure from your income (excluding debt payments as after bankruptcy you have none).
Fee
Posted - 30 June 2008 : 10:35:22
