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.