A change in the way Income Payment Agreements/Orders are calculated has been issued to Official Receivers.
When does it come into effect?
It comes into effect from 1st December 2010
Does it affect IPA/O that is already in place?
It does NOT affect any IPA/O already in place by 1st December
It does NOT affect any change required to any existing IPA/O
What is the change?
With effect 1st December only the first £20 of surplus will be discounted and after that 100% of any surplus will be taken towards the IPA/O.
Currently the first £100 of any surplus is exempted and then there is a sliding 50% - 70% sliding scale, this will cease.
What does this mean?
Currently if there is a £400 surplus after all expenditure is taken into account, then an IPA/O would be put into place for about £260 per month.
Under the new system, if there is a surplus of £400 then an IPA/O could be put into place for £380 per month.
BUT PLEASE REMEMBER
An IPA/O only last for 3 years only, and is normally more generous in its expenditure allowances than IVA or DMP.
Once more information is know we will let you know
Want to talk to someone confidentially, without obligation and free of charge?
Abbreviations used in DQF
My advice is guidance only, if you want the law then consult a lawyer!
(c) All Spelling mistakes are my own design, infringement of them may result me sulking!