Author Topic: IPA  (Read 11217 times)


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« on: Sep 29, 2016, 07:39:57 PM »

I was declared bankrupt in August.  I applied for bankruptcy when I had to give up my full time job to care for my son who has mental health problems.  I retained some very part time work which I am able to do from home and I have a small occupational pension.

My problem is that I earn about £1,100 a month.  However, after my income and expenditure was calculated, I have been asked to pay an IPA of £312  a month.  I do not receive any benefits (child tax credit and child benefit goes to my husband who does not live with us) or carer's allowance.  So I am left with about £800 a month with which I pay rent, bills, feed an clothe my child and so on.  I am finding it difficult to manage.
Is it normal for the IPA to be so high?

Lisa Thomas

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« Reply #1 on: Sep 30, 2016, 09:44:05 AM »
Hi every IPA is calculated individually based on the debtors surplus funds available after reviewing your Income & Expenditure and seeing what you need to be able to pay for your 'reasonable domestic needs'.

If the sum requested is unmanageable and leaves you short then either:

a) You have not disclosed all necessary expenditure on your form
b) You are paying for non essential items
c) there has been an error in the calculation.

You will need to take this up with the Trustee or O.R to get to the bottom of it.  However if it is right you will need to pay it for 3 years.  If you refuse to pay it they can take you to Court for an Order enforcing you to pay it.  (Having said that I understand if it gets that far the Court tends to lean more towards the side of the Bankrupt...) 01752 786800