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By archie36
#30057
Just wanted to clarify something please. If you are discharged but you have an IPA can the amount you pay each month be changed if you earn more or get a windfall? I was reading something somewhere which was suggesting it cannot. But if that is true what would happen if I lost my job and can no longer afford the monthly IPA payment? Am I still forced to pay it and if so would I have to borrow it?
#30061
Hi there archie36 and welcome to the forum

If you are in an IPA the amount you pay can change if you have a change of circumstances. essentially if you have a pay increase it may go up and if a decrease it may go down. if you have a new job that gives you a pay rise but your travel costs increase then you may not need to pay more. So it really does depend on your circumstances. if anything changes let your OR know and they will review your case.
if you receive a windfall while you are in an IPA you will have to give this to your creditors but anything after your IPA has finished (usually 3 years) will remain with you.
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By Hayden
#30215
Hello archie36

If you have an IPA and your income changes then the IPA payments that you make can change either up or down yes. However if you get a windfall then Melissa is not quite right. This actually does not have to be paid to the OR as an IPA only includes money you receive from a regular income. A windfall would be yours to keep. The OR would have no claim on it after you are discharged from bankruptcy as long as it is not an unrealised asset of the bankruptcy such as a PPI compensation payment.
#30219
Hello archie36

The question of whether an IPA will change after a change of income is an interesting one. Legally under the terms of the Insolvency Act there is provision to allow changes either up or down. If there were not then as you say how would you be able to continue an IPA if you lost your job or your income fell. In these circumstances the amount you are paying will always be reduced or stopped altogether.

However in the case of an increase in income although in theory you can be asked to increase your IPA such a change would normally require the Official Receiver to get permission from the court to make the increase which is a lot of hassle. As such you might find that the OR is simply not interested in making any changes and they let you continue paying your normal agreed amount.. However you are still obliged to tell them of the change.....