Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By JackBoon
#208767 Hello,

I'm going to be made BR soon and I just wanted to clear something up regarding salary payments and IPA agreements.

Is it true that after seeing the OR for your initial meeting that you then have 3 months before the IPA starts? I've heard people say it but I'm not sure if that was just a matter of timing for them or if it's official practice?

If that's the case - are the 3 months salary payments in that period mine to keep? It seems a little too good to be true?

I am on a good salary and if this is the case then 3 months wages will allow me to really get my life back on track financially and set me up for the 3 years of IPA payments that I am facing.

Thanks for any advice.

By Iphigenia
#208775 It's just timing. I was fortunate, in that I went bankrupt in May and didn't start paying IPA until September but that was because my income was fluctuating. I think for some people it can be much, much shorter. However, yes, your salary is untouched between B and the IPA starting, and it does help a little.
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By jurgenpie
#208789 I was lucky as well went bankrupt 5th March and first IPA payment was 24th September, at the end of the day you still have 36 payments, so use the spare cash well.

By JackBoon
#208801 Many thanks guys, I understand it better now - I didn't know if it was a fixed period in between BR and the IPA starting that's all.

I guess I'll just have to have my fingers crossed then - a few months wages would certainly be extremely useful to have put aside when I start the 36 months of IPA installments.

Two further things on this topic that I'm unsure of on this topic are:

* Is it usual to receive your full salary and then pay a standing order to the OR? Or is it more common to have it taken out of your wages? It's just that I don't really want my work knowing that I am BR if I can help it.

* Regarding the IPA, how much warning do you get of it starting? I.e. will I simply receive a letter saying that from the next pay day I need to send them £xx?

Any feedback appreciated.

Cheers again :)
By Iphigenia
#208802 You set up the SO, nothing at all to do with work.

When you agree the IPA - you'll have a detailed conversation on the phone with the OR, who will then send you a form that you have to sign to say that you agree with the IPA amount. It will have a start date on it. In my experience, it won't be 'starts tomorrow' but will be 'starts on the first of next month'.

I'm a great supporter of IPAs, it makes me feel a bit happier (actually, probably far too smug) that I'm at least addressing some of my debts, but at the same time, remember when you produce your Income and Expenditure forms: don't cut your expenses down unrealistically. You won't get extra points off the OR and could end up struggling. Remember especially the expenses that are particular to you, not just the bog-standard rent/insurance/etc. If you list something that's too high, in his/her opinion or not a Necessary expense - monthly scuba diving classes or whatever - the OR will only say no, after discussion, it won't annoy them into being any more draconian.

Good luck. :flower: