Author Topic: Moneys required from the OR  (Read 960 times)


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Moneys required from the OR
« on: Oct 08, 2011, 07:13:17 AM »
Can anyone help with information please?
My Fiancey has recently been declaired bankrupt and the OR is assesing her ability to make payments.
She has been told that she will be discharged from Bankrupcy in July next year.
They have asked for all her outgoings and monthly expenditures which she has provided honestly and accurately.
The OR has come back with an agreement for her to sign which basically states that they want her to pay £414.00 each month for 36 months (three years).
In addition they also want her to pay her income tax (being NT or zero rated) to the OR for the current tax year - not a problem with this.
As the income tax is to end of tax year April and as the bankrupcy is stated to be discharged next July - why does she have to pay the £414.00 each month for three years?
 Can she dispute this as in real terms she is going to be no better off than prior to bankruptcy in terms of cash flow.
 Can the duration 36 months be reduced to something shorter or the payments halved.
 The whole idea of the bankruptcy was to get her out of an every increasing spiral and get her back on track to move forwards in a solvent situation and remove all the missery, worry and stress.
Many thanks in advance for all your responses and advice - cheers.

James Falla

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Re: Moneys required from the OR
« Reply #1 on: Oct 11, 2011, 06:11:02 PM »
Hi there Trembler.
If your fiance has got disposable income, then she will be asked to pay this towards her creditors in the form of an income payment order (IPA). The standard period that an IPA will last is 3 years from the date it is introduced. As such, it will always last for longer than the bankruptcy itself.
Is she concerned with the amount she has been asked to pay? If so she may be able to appeal to the official receiver if she can prove that she has additional legitimate expenses that she did not make the OR aware of before. 
Debt Expert & Author