Will I have a monthly payment once bankrupt – Income Payments Agreements
Some people are so intent with forging ahead with their bankruptcy that they fail to pay attention to the Income and Expenditure section of the bankruptcy application.
This is arguably the most important part of the service we offer, as it is important that you claim the maximum allowable limit for all expenses, to avoid surplus income. If it is found that there is surplus income, you may well be involved in an Income Payment agreement for the next 36 months. To put this into perspective, even a £50 payment equates to £1800 over three years.
We know the limits and have an outstanding track record in helping people avoid having to pay anything after bankruptcy, known as an Income Payments Arrangement or IPA. If you are placed in an IPA it will be for 36 months and this can amount to a lot of money over the period.
The Insolvency Service has made things tough for those attempting their own bankruptcy, as all manner of non-allowable expenses have been included on the online application. For example, we were astonished to see things like tobacco, alcohol, entertainment and club subscriptions included in the form, as we know these are not allowed.
In fact, we counted around 15 of these non-allowable expenses and if you had included any of them in reducing your surplus income to zero, you would find yourself involved in an Income Payments Agreement. We have a few tricks of our own for avoiding excessive IPAs so call us if you need help.
Bankruptcy UK has been helping people with bankruptcy since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.