Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By Graysie
#2701 I went for the big B on the 3rd of December and have agreed an IPA with the OR. I know I have to inform them of any changes within 21 days, but does this 21 day rule apply to the full 3 years of the IPA or until the bankruptcy is discharged? (I realise that I have to pay the agreed amount for the full 3 years).
By keepchinup
#2702 Hi, I'm in a similar position.

My agreement states "until I am discharged I agree to inform the OR...blah blah blah", so I reckon only whilst undischarged.

the only time they'll hear from me about it after discharge is if I need it reduced.
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By JaneClack
#2705 I shall have to check on that - I know that we generally advise those who do not have any IPA/IPO to not take on any further overtime etc until discharged from bankruptcy so that none can be set in place. Therefore it would seem logical that it is only until discharge that you have to let them know for any upward increases and it certainly does seem that way from keepchinup's quote but I do not want to say categorically without checking!
By Graysie
#2707 Thanks for the replies - my agreement states the same but I really just wanted to be sure. I wouldn't want to over inform the OR :roll:
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By JaneClack
#2708 Not many do! :lol: Just tell him what you need to by law!
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By JaneClack
#2743 Have seen Simon's reply to a very similar question and he says it is categorically stated that you must inform the OR for the whole 3 years of the IPA - according to the rules - but then does point out - how would this be enforced!
BySonic
#2750 Hi all

Sarah, sorry I don't want to look like I'm contradicting you but noted yesterday there's a similar question on Simon's board to which he replied:

The rules are very clear in that you have to disclose any and all changes to your income for the full 3 years so in effect you will be unable to improve your net income without disclosing it and your IPA being changed as a result even after you are discharged. However it is not clear from the way the enterprise act was drafted how after discharge they could police or enforce this as there is no mechanism after discharge for imposing a change if the perosn refused to pay an incresed amount and thats if the person discloses any change as I am sure some will not do so.

S
BySonic
#2751 ...ooops really sorry Sarah - just read your latest post. :oops:
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By JaneClack
#2789 Good - was about to jump in and say that I had already posted .... that's the beauty of having Simon around too! :lol:
By Graysie
#2802 Don't wish to appear thick, but can't find the reply you mean. :roll:

Any chance of a link?

Thanks
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By JaneClack
#2805 We cannot give a link to the direct response but the question was on IPAs! - both Sadnskint 'n I have given you Simon's comments - I as a summary and Sadnskint quoted verbatim! :lol:
By Graysie
#2809 Thanks for that Sarah, it looks like I might 'forget' about any changes after discharge. :roll:

It would be an easy oversight to make. :wink:
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By JaneClack
#2813 Just remember though that he could well find out - the I.R. will be approached at the end of the tax year but as Simon says it is only really a problem if there is a large discrepancy. Just put the £5K bonuses on hold!

As the legislation states you do have a duty to let them know, but as to how they can enforce it is difficult to see.