Bankruptcy IPA/IPO

[wen]

I'm a bit confused about Payment orders in Bankruptcy. The following is from he Insolvency website:

-----
Currently the guidance given to official receivers about how much money they should take under an IPA/IPO is that if a bankrupt has more than £100 per month disposable income s/he will be expected to pay a percentage of that under an income payments agreement for three years. If s/he has less than £100 per month disposable income s/he will not be expected to pay anything under an income payments agreement. The percentages work on a sliding scale, according to the amount of disposable income, as follows:

£100 to £240 - 50%

£250 to £340 - 60%

£350 to £490 - 66%

£500 to £600 - 70%
-----

Am I right in thinking, that if my disposable income was £150/month, i'd have to then end up with only £75/mth, whereas i'd be better off with £100/mth disposable income and keeping all of it?

Or does it work that you keep £100/mth whatever the case, and then give 50% of anything between £100-£240 etc?

[Cybus]

I believe that with a disposable income of £150, you will fall in to the 50% band and as such will be paying £75 as you suggest.

Personally I would do the right thing and declare your income - which can be evidenced and accurately reflect your outgoings. If the disposable income comes to £150, then pay the £75.

It would play on my conscience if I disclosed inaccurate information.

Tell it like it is.

[wen]

Thanks for the reply Cybus.

I just used £150 as an example, I haven't actually sat down and worked it out yet.

I just thought it seemed a bit strange that you could end up with less disposable income, but in effect have more at the end of each month than someone with a higher disposable income.

[MelanieGiles]

That is a bit strange isn't it - but the OR will check your wage-slips so no advantage in putting an incorrect figure forward.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[wen]

No question i'd be honest on all counts, it was the whole 50% thing that seemed strange.