Help - not a good way to start Saturday!

[Skippy]

A few weeks ago I posted on here as I was worried that I had only informed Clarke Willmott and not the Official Receiver of my pay rise. When I spoke to CW they told me that it was down to them to do it, but they hadn't done so as the I had sent them in May wasn't on file (even though they had the payslip I included with it!) and could I re-send it. This morning their reply arrived and I quote:

"We have written to the Insolvency Service to seek further instructions in this matter.
In the meantime we advise that you make voluntary instalments that you feel you can manage."

I'm really not sure what to do - are they saying I will have to make up the shortfall from May, even though I don't know what it is? I wouldn't really be happy about doing that as I notified them so therefore it's not my fault if they didn't follow it up.

I will struggle to make an extra contribution from August's salary as my car needed 2 new tyres and the tracking re-set after it only just scraped through the MOT. This cost £140 (not including the MOT and the brakes I'd already paid for!!) and Dave had to pay this for me on the understanding I will repay him when I get paid on Friday. Is it ok to tell them this (I can provide a receipt for the tyres) or should I make a token payment?

My expenditure will change soon anyway as Dave has had an offer accepted on a maisonette and we are now waiting for a moving date. The mortgage will be a little more expensive (although the fixed rate here was due to end anyway) and some of the bills will change. If I can keep most of my pay rise this will be covered and I will still be able to pay the £186 originally agreed, but if they reassess me and I have to pay more I will have to ask for another reassessment in a couple of months. Do I mention this to CW?

I feel like I'm back to where I was a year ago, worried about what I will be repaying, and should I make a token payment, and if so how much. What a mess - I just feel like crying.

Sorry to rant on, but any advice would be gratefully received as I don't want to land myself in any more trouble!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[pippa]

Hi Skippy

As you know I am a few steps behind you so sorry I cant offer any advice, but please dont worry I think we have done enough of that.

Was it a large payrise or a standard inflation based one. If its the latter surely they would allow you to keep it.

Anyway hopefully someone with some experience in this area will be along soon. Sorry not much use.

Pippa

[aguise]

Hi skip can you just not ring them and ask them to explain what they mean. I dont see they should ask for any back as you informed them, if they took too long it is their fault. Tell them abouyt the extra expenditure and keep yoour receipts. I do in the iva for absolutely everything that is out of the ordinary expenditure.
Dont get upset you will be fine. I know I'm not much help but, try not to worry.

Ang x

Please visit my blog at http://aguise.blogs.iva.co.uk/

[aguise]

Gawd I cant spell today.

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Skippy]

Thanks Pippa. It worked out at about £60 a month, which by the time the mortgage increase has come of it won't leave a lot. I just feel at the moment that things are going along nicely and then something goes wrong!

Thanks Aguise, I think I will ring them on Monday and explain the situation. I've got the receipt for the tyres but not the brakes as I got a discount for cash - I've never had that before as everything used to go on the credit card!

Oh well, they can't take what I haven't got!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[mish1953]

Skippy
chin up, it sounds like yuo are doing the right thing.

Like Pippa Im at the early stages , just got a letter from the OR saying the Clarke Wilmott will be the collection agent..

I 'think' that CW just act as a collection agency for the OR .. could be wrong .. I would advise /contact the OR rather than them 'cos ultimatly its the OR that decides your payments .

I dont start paying until Oct but may .. and thats a big may .. get pay rise sometime during the period before Im discharged , I intend to contact the OR when that happens as I can guarantee that it will be below the rate of inflation.

Im not quite sure how I go about paying CW - havent been told yet - but I would guess that it will be a standing order as the coop have just killed my current account .

Too early for whisky
Mish

[Skippy]

I pay CW by standing order Mish. CW are the collections agency for the OR, and each time I have spoken to them they have been really nice. I was told by CW that if you get a pay rise you notify them, not the OR - they will do that, and you get 21 days from the date you receive the money. I'm trying to have as little to do with the OR as possible!

How's your day going Mish - I hope you have a better one than yesterday!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[catullus]

Hello Skippy

From a tecnical point of view there isn't much that I can tell you because IPA's haven't been around long enough for much guidance and precedents to have been set.

I'm assuming that a formal IPA is now in place in which case what does it actually say? I've never actually seen one but technically, as it is an undertaking, whatever it says is your actual obligation.

Personally I don't think that you've got much to worry about. You've done all you can but I would follow CM's advice now. As to the monthly amount that you voluntarily pay over, I suggest that you choose a figure that will not cause you any undue difficulty. I expect that many people in your situation wouldn't even bother so I think that the OR might be pleasantly surprised if you did this and wouldn't quibble with the amount that you had chosen although he could adjust it again going forward.

That's my pennyworth but people who have actually gone through the procedure are more likely to be able to tell you more accurately than me what the OR's policy is.

[mish1953]

Better to-day thanks Skippy

Coop cancelled all my d/d's yesterday... got letters from house and car insurance this morning telling me to contact them or they stop the policies .. talk about quick off the mark !

The coop will set up a cashminder account but it will take them 7 - 10 days ...

Just another Saturday
Mish

[Skippy]

Glad to hear that Mish.

Catullus, I will ring CW on Monday and tell them I can't pay any extra this month, would they like the receipt to prove the reason, and I will try. I will also explain about the move, and that I don't know exactly what my expenses will be. If we haven't moved by then I'll pay a tenner - I don't want them thinking I can afford a lot more than that!

Catullus, what happened before IPA's came into force?

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[lily]

Skip

please dont get upset, I know you have had a hard journey and things are unsettled at the moment. I really dont know the answer but this is what I would do. Calculate roughy what your new expenses will be when you have moved. Then, when you have a rough idea of your own disposable income, use the IPA percentage scale and work from there. I wouldnt worry about back-daing everything as you have already spent the money on the car. Write it all down and phone the OR on Monday and recount it all. I am sure you will be fine. I know you have been climbing a mountain for the last 12 months but you havent fallen down at all, you are just not sure how to continue on, you get there though. Here's a hug for you, I cannot cope with the thought of you being upset.


Mish

I had the same problem, coop really do take at least 10 days to get everything sorted. What I did was pay over the phone for a month or so, I had a prepaid debit card and I just loaded the DD payments onto it, if you do not have access to this, ask them to send you a slip for a cash payment at the post office. They did this for me within a day!!!! Hows that for speed.

lily

[catullus]

Sounds like you are doing the right thing.

Prior to 2004 it was very rare that anything had to be paid in to a bankruptcy. It only really affected the big hitters and I mean big hitters.

Have you actually got an IPA in writing and, if so, is there anything in it that gives guidance on this issue?

[Skippy]

I have looked at the IPA agreement and the bits that jump out are:

5) I understand that when this agreement is signed by the Official Receiver it will become a legally binding document and that it may only be varied by written agreement with the Official Receiver or any trustee appointed, or by order of the court.

9) Until I am discharged from bankruptcy, I shall notify the Official Receiver or other trustee of any increase in my income within 21 days of becoming aware of the increase. I understand that the Official Receiver or trustee may claim any increase in income for the benefit of my creditors.

So reading 5), I don't actually have to make any extra payments until I actually have a figure in writing from either the OR or trustee (who I assume is Clarke Willmott?).

And regarding 9), once I am discharged any pay rise is mine to keep, and I don't have to notify anyone!

Thanks everyone for all your help and support. I'm feeling a bit better now - it was just a bit of a shock on a Saturday morning!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

No Skippy

Clarke Willmott are a large firm of soicitors based in Taunton who are under contract to the Insolvency Service to collect all IPO and IPA payments. The OR is still your Trustee.

Prior to the new arrangements for IPOs and IPAs - and I have to say I personally have a lot of experience of seeing IPO arrangements in the past - perhaps the ORs offices I am linked to are just more proactive than yours Catallus! - there was only one way of paying surplus income, and that was by order of Court - hence IPO.

With the Enterprise Act, came the advent of the ability to pay on a voluntary basis, by agreement with the OR and the bankrupt - hence the IPA. This provides a much simpler and less bureaucratic method of collection.

Skippy - I suggest that you set the extra money aside from now on and await further instructions from Clarke Willmott. They are a really good firm, and the Senior Partner is very well known to me - so if you have real problems with this, and I suspect you will not, let me know and I'll have a word in his ear!!!

And if you have incurred additional expenditure, it is perfectly acceptable to set this off against your payrise.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

Thanks Melanie.

At the moment I can't put any of the money aside - after I went BR I needed some work doing on my car and my mum has paid that so I am paying her back as well as Dave! What a mess! I don't want to mention that in case I get into any trouble for borrowing the money, but I didn't have any other option as I was broke after the IVA and paying the BR fees! I am slowly starting to get back on my feet, but it's taking time.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/