Author Topic: Income payment agreement  (Read 2884 times)

karenlynne

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Income payment agreement
« on: Apr 13, 2011, 12:47:59 PM »
I was sent an income payment agreement after my insolvency practitioner told me I could afford to pay £60 per month as he was disallowing my fuel saying it was too high. I travel 80 miles a day to work and have no choice but to pay this amount for fuel. I asked him to reconsider but he said that if I didn't sign it, he would suspend my discharge and apply for an IPO of £400 per month based on the assumption that I would not be able to pay the mortgage, have the house repossesed and have to rent, leaving me he assumed, with more disposable income. This was January and my discharge was due in Feb. I signed as I felt I had no choice as he emailed the papers he would be submitting to court if I didn't sign. I cannot afford to pay this IPA so, being as I was threatened into signing it, can I argue that I signed under duress therefore arguing the validity of the agreement? He knew that I suffered a nervous breakdown which lead to my business closure and bankruptcy.
The IP said that as I signed, I was admitting that I had disposable income. Everything that went on is on email as I have never had a meeting with him and never spoken to him on the phone.

James Falla

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Re: Income payment agreement
« Reply #1 on: Apr 15, 2011, 04:26:20 PM »
Hi Karenlynne
 
Sorry to hear about your situation. Given what you have said, you may well have a claim that the IPA is invalid as you agreed to it under duress. However, unfortunately you will probably have to end up arguing this in court. You may well win the arguement but you will need to engage a solicitor to help you get to that position.
 
Given that you were a home owner when you were declared bankrupt does the official receiver /trustee in bankruptcy still own the title to your property? If so have you made any arrangements to buy back the title?
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karenlynne

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Re: Income payment agreement
« Reply #2 on: Apr 16, 2011, 02:52:46 PM »
Hello James,
I have asked the IP twice if my husband can buy the BI as the IP still has the title. The first time I asked (2 months after he took my case) he said he was still at the beginning of the administration and he was going to keep it for the full 3 years. The second time I asked, he said I could buy it for the full amount of the IPO application that had been put into court (I had already by this time had an automatic discharge). The amount he wanted was £15k and he said he would withdraw the application and sell the BI if I paid but also continued to pay the IPA at £60 per month. The court case was last week where the IP withdrew the application. The IP has admitted in emails that the house will not have any equity even after 3 years are up.
Many thanks

James Falla

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Re: Income payment agreement
« Reply #3 on: Apr 19, 2011, 06:53:53 PM »
Hi Karenlynne
 
It does sounds as though your bankrutpcy trustee is being particularly unhelpful. Ultimately he/she can hang on to the title of your property for three years from the date of your bankruptcy. However if a reasonable offer is made to buy this out in the mean time it would normally be taken up simply to get the case off the Trustee's books. This is particularly the case in the current climate when house prices are likely to fall rather than rise in these timescales.
 
Ultimately if your Trustee has decided not to play ball and wants to hold your beneficial interest this may work in your favour. If your property is still in negative equity at the end of the three years, the IP is obliged to simply return it to you.
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