www.iva.co.uk

How are people supposed to make informed decisions when clearly one of the following lifted directly from CCCS and Insolvency Websites give conflicting advice? It beggard belief to me !

Quote from CCCS
"You are normally "discharged" from your Bankruptcy after one year.

You will continue to pay into your bankruptcy for 2 years if you file your own bankruptcy and owe less than £20,000.

You will continue to pay into your bankruptcy for 3 years if someone else makes you bankrupt or you owe more than £20,000.

Longer periods may apply if this is not your first bankruptcy or you have a large surplus income to pay into your bankruptcy."

Insolvency Website
"An IPA must specify the period in which it is to have effect and that period can apply after a bankrupt is discharged but cannot extend to a date more than 3 years after the date of the IPA. An IPA may be varied in writing"

IE..one advises an IPA could be longer than 3 years and another one says is can't !

Any experts care to shed any light on this ?

Here's how I understand it:

I petitioned for my own bankruptcy in March this year, and my automatic discharge date is 29th March 2008.

If I am made subject to a Bankruptcy Restriction Undertaking (BRU) or Bankruptcy Restriction Order (BRO) I will still be discharged on 29th March but will be subject to the restrictions of bankrupcty for 3 to 15 years depending on the length of the BRU.

I have an IPA which will last for 3 years. If the IPA hadn't been put in place prior to discharge I wouldn't have received one. If my circumstances change during the duration of the IPA I can ask for my payments to be varied.

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/

I think that both statements say that you pay an IPA for 3 years, which is indeed the case.

Skippy, you don't get discharged from bankruptcy if you have a BRU or a BRA until the time period for that has expired.

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

Hi

Whats the difference between a BRU and a BRA ??

Pippa

Thanks Melanie, I stand corrected!

A BRU is a restriction order agreed to by the bankrupt. If you don't agree to the BRU the OR can apply to the court for a BRO, which is generally longer.

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/

Thanks