Insolvency Service Income Payments Agreement

(a) an IPA is a contract and therefore a binding agreement whose terms may be applicable as an IPO. The official liquidator employs a law firm to manage APIs. In most cases, you make the payments to them. If you have been on the verge of bankruptcy for a year, the agent will also try to suspend your discharge from bankruptcy. This means that you are subject to persistent bankruptcy restrictions until you enter into the income payment agreement or make payments as part of the income payment order. You should keep in mind that in the event of a suspension of the discharge, a longer window will be opened, where assets such as a stroke of luck or succession would otherwise be excluded from insolvency. On the other hand, they will also forget about a certain income, so that, for example, if you receive a disability allowance (DLA) or a personal independence payment (PIP), this is not taken into account to assess what you could afford. (c) A DPI may provide that payments are made by a third party[note 4], for example to an employer. After your bankruptcy, the official liquidator will do a thorough review of your situation. You`ll look at your income and expenses and find out if you have something every month that could be used to pay off your debts and bankruptcy management fees. The law allows your attorney to apply to a court for an injunction that would lead you or your employer to make regular payments to the bankruptcy estate. This is called the order of income payments (IPO). The official agent or receiver will do their best to agree on the amount to be paid, but if there is no agreement, they will instead request an IPO.

An income payment order is a legal order, so it is important that you track refunds. Otherwise, your discharge may be suspended, which means that your insolvency takes longer than the standard 12-month period. You can also request that the money be deducted directly from your salary or take legal action to recover the money owed. If you stop or reduce payments without first contacting the official receiver and lawyer, other legal action may be taken to recover the payments you missed….