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Income Payments Agreement Archives - Bankruptcy UK



Should I Go Bankrupt

bankruptcy-solicitorShould I Go Bankrupt

If you are thinking about bankruptcy but have a few doubts, why not call us for a pre-bankruptcy chat and we’ll run through everything with you.

Near the top of the list has to be the all-important income and expenditure, as this will decide whether it is right or not.

It is often the case that people overlook or under claim on certain aspects of their finances, something we will pick up on straight away. There might be other niggling doubts about cars, properties, HMRC or even Bailiff issues, but we have all the information you require to make an informed choice as to what you can do. Our advisers don’t use scripts and talk in Plain English.

Our Pre Bankruptcy consultation generally lasts between 15 and 30 minutes. We will be able to provide you with a full brief of what is discussed. We offer a very positive approach to bankruptcy.

You will have a clear understanding of how a bankruptcy will effect you and what to watch out for. We provide a full bankruptcy administration service in obtaining your bankruptcy order. You will find our staff helpful and cooperative at all times.

You will find that once you know what is involved we can then work to a time scale that will help you to focus on a date in the future where the order will be made. There are lots of things you can do to help yourself. Especially an Experian Credit Expert membership that will provide you with a full snap shot of your credit file.

HMRC Statutory Demand is worrying me

HMRC are proceeding with bankruptcy action against me as I owe them £40,000 and have rejected my offer of payment. I was served with a Statutory Demand two weeks ago. What will happen now? Will the court write to me or will they call at my address again? Do I have to attend the High Court hearing and how much notice will I get? Also, do I have to fill in the same bankruptcy forms as if I were applying myself?


If it gets as far as a hearing, you should be served notice no less than 14 days beforehand, but you are not obliged to attend court unless you have an objection. No one will come to the house and the documents are different from those if you were arranging your own bankruptcy, but it’s still do-able.

The good news is that you will be able to include any other unsecured debts in the bankruptcy. What we weren’t clear about is your residential status, whether you own a car and what your earnings are. One of the negative aspects of this action is that of an Income Payments Agreement, whereby any surplus income is attached for three years. Give us a call if you need help, as we have specialised knowledge of what can be claimed for expenses in bankruptcy.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

PPI and bankruptcy …

I went bankrupt in 2007 and was discharged in 2008 (6 years ago). I’m thinking of claiming PPI on a loan I had before I went bankrupt – would I be still be able to claim or would my official receiver take the refund if I was entitled to one?

PPI taken on a loan before the bankruptcy is defined as a ‘bankruptcy asset’ and would go to the Official Receiver, to be distributed among the creditors included in the bankruptcy. A number of lenders make out cheque payments to ‘The Trustee of …’ which ensures that this happens, but we have heard of many cases where this prefix was not put on cheques and the recipients simply banked the cheque. Naughty, but what would you do? On a positive note, if you won the lottery the day after you were discharged from bankruptcy, you would keep the lot.

Feel free to call us with any further questions or for bankruptcy help on 01425 600129 or 07479 739139


What expenses can I claim in bankruptcy?

I’m bankrupt and waiting for my trustee to get in touch as no doubt they will want to try and get a monthly payment out of me (even though it was my ex that ran up all these debts in my name!) Anyway, I don’t see why I should be left with absolute peanuts, as they are saying they will take any surplus income in an IPA. What am I allowed to put down for monthly allowances?

Knowledge of the various expense allowances in bankruptcy could easily prevent you from receiving an Income Payments Agreement or IPA. Or at the very least, prevent you from having to pay over the odds for the next three years. This is something we specialise in and is the very reason why people entering bankruptcy should seek professional assistance. If you were to receive an IPA of £100pm this would equate to £3600 over three years and it is worth paying professional fees to avoid this happening.
Bankruptcy UK offers a full bankruptcy administration service, including dealing with creditors, completing the all important Income and Expenditure, professional completion of the relevant paperwork, etc. Call us on 0800 5977 977 or 01425 600129 for a chat about your circumstances.

Will the Official Receiver take all my surplus income in an IPA?

I have completed an income and expenditure and have a surplus of £373 – is it likely that all of this will be used as part of the IPA?  Do you know how this is calculated?

Yes, we know exactly how it is calculated. Assuming you have claimed everything in line with the accepted limits, the entire surplus will be claimed in an Income Payments Agreement or IPA. This takes the form of a monthly payment to the state for 36 months and is used to a) cover the state’s administration costs and b) to distribute among your creditors. It is arranged through the state’s solicitors viz. Moon Beaver and everything will be explained to you.

The income and expenditure is the single most important part of the service we offer, as it can affect your life for some time to come. Under the new online system, applicants are invited to claim expenses for many illegal things e.g. entertainment, alcohol, tobacco, etc. and if you blundered into any of these traps, you would be in trouble. We know exactly what may be claimed and for how much, and you would be well advised to give us a call.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Court appearances are no longer required for bankruptcy as everything is processed online.


Made bankrupt for £1300 visa – what happens next?

I have been made bankrupt over a £1300 visa, I am not sure what happens next and what I will have to pay out i.e. costs.

We are surprised to hear this, as it would have cost the creditor almost as much again to take you through the process. You will receive paperwork from the court and your circumstances will be assessed in much the same way as if you did it yourself. The good news is that any other unsecured debt you might have, will be written off at the same time. If you have no other debts and wish to avoid bankruptcy, you could offer to settle the debt and it will be reversed.
A word of caution if you decide to proceed – if you have significant assets or a high income, you would do well to seek professional assistance or you might end up in an Income Payments Agreement or losing the assets.

Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for an informal chat about your circumstances on 01425 600129.



Bankruptcy UK

Bankruptcy UK