www.iva.co.uk

Hi
From the 1st Dec anyone with a disposable income above 20 pounds will have to pay 100% of their disposable income into their bankruptcy for three years
This is a major change because at present it is between 50-70% on DI above 100 pounds over three years
It will certainly make bankruptcy less attractive than it has been before and I wonder how the bankruptcy assist companies are going to react ?
Regards

Hi Andy

Where have you got this information from? As you say its a big change
David

Hi
It has come directly from a colleague who spoke to the Insolvency Service yesterday
Regards

Hi Andy

This news appears to be doing the rounds however we have not seen or heard anything official at the time of posting.

Many people will have already taken advice on bankruptcy so it is extremely important that this issue (or rumour)is clarified.

We are of the opinion that it is always wise to be cautious of these type of announcements before assuming anything.

NEDCAB

Thanks for that North East Derbyshire CAB,

This information has also been echoed by a regular MSE.com poster from the CAB who says he has a copy of the written instructions from ORBS IS case administration unit.

Hi Liam

Yes, we have seen the posts on MSE you refer to but as far as we are concerned this cannot be taken as official.

It appears people are mentioning IPAs however we are sure you are aware that there is a difference between IPAs and IPOs.

We are in the process of contacting The Insolvency Service for official clarification

NEDCAB

Thank you so much, it would be great to get an official line in this.

Hi
I think you can take it as true given that my colleague has spoken to the Insolvency Services
There did need to be a change made as the IVA seemed far tougher on paper than bankruptcy. With this change it may well have swung the other way !!
Regards

Hi Andy

We do not see this in the light of changing anything in relation to compare with IVAs.

Our concern is with what is right and appropriate for our clients and sustained affordability of any proposed IPA / IPO.

An interesting comment though Andy taking into account the tens of thousands of IVAs that fail or do not run their course.

NEDCAB

If this is official, and it looks like it may be, I still cannot see how it makes an IVA even look more appealing than bankruptcy, an IVA can still fail a Bankruptcy cannot, the window of opportunity for the trustee to get the bankrupt pay into an IPO is still 12 months, bankruptcy assist companies will advise the part time job to terminate, the overtime to stop, its only a year to live on allowances similar to an IVA, remember Bankruptcy Assist companies they work for the debtors, whereas the IPs have a legal responsibility to work for the creditors, so following discharge, still 12 months, you can inherit a property, win the lottery, become head of ICI you still have afresh start, whereas upon the failure of an IVA and I predict there will be many in 2011, but normally 12 to 18 months in you are back to square one.

Hi

We have received information from the I/S that basically confirms -

'A revision to the way in which Income Payment Agreements(IPAs)and Income Payment Orders(IPOs)are sought'

It seems the above should be put into affect from December Ist 2010 for all cases where a new IPA/IPO is sought.

This appears to be a very significant announcement for anyone petitioning for bankruptcy on or after December 1st 2010 with the apparent short notice of great concern.

We are currently studying the information and the interesting guidelines before commenting any further.

NEDCAB

To "The Major", why do you feel that many people in IVA's will fail in 2011, and that we will be back to square 1 in 12-18months ? Surely these are negative comments on a site that is suppose to promote and actively support "me" as in us in iva's and I now feel more nervous of failure than ever ?

Hi Indebtscared,

I would not read to much in to what "The Major" has stated. I am sure the majority of IVA's will not fail.

If you are happy within your IVA and it is affordable then you have no need to worry.

Thanks rayb, I am an eternal pessimist, my glass is always half empty. Yes our IVA is jogging along nicely, just makes me cross sometimes when people try and put doubt in others minds.

Hi Indebtscared,

I agree - negativity does nothing for anybody!!!!