# What if your income increases during IPO - but post bankruptcy



## Adecco (11 May 2017)

The question is as the title suggests.

So if you're involved in an IPO after bankruptcy.
Is the amount you have to pay out each month maxed at the amount you had to pay when you exited bankruptcy ?

Or - if your income increases further during the ipo period (post bankruptcy) will your monthly payments also increase accordingly ? (And does the same apply to any lumps sums  received post bankruptcy such as bonus, inheritance etc.)

(In which case to all intents and purposes you are as good as bankrupt for many years in terms of any additional income and any lump sums you can receive post bankruptcy)

And if this is the case, can someone get a loan greater than €650 (the threshold during bankruptcy itself) during this IPO period post bankruptcy.
Can someone then use this loan to pay back the total amount owed in one lump sum that would have to pay for the additional years, thereby releasing themselves from the IPO immediately. (and thereby allowing themselves to win the proverbial lottery without having to pay anything over) 

E.g I have exited bankruptcy. I must still pay an additional €100 a month fro next 2 years. Can I just get a loan from a 3rd part and pay €2,400 in one go - that way being out of reach of the receiver from that day on.


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## Ciara Lee (2 Aug 2017)

I would love to hear the answer to this also. We were discharged but are still paying a €500 monthly IPO. I assumed all along that once discharged, that if circumstances changed it was not necessary to inform the OA. 
We have just found out that my husband will be made redundant and so contacted the OA office as we still have three months left on the payment order. They now want to do a full RLE assessment on us both.


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## Jim Stafford (2 Aug 2017)

The legislation around IPOs is very prescriptive, and the OA has little latitude.  if your income increases after you have exited bankruptcy then you have to notify the OA who will increase the amount you have to pay.

You cannot "buy out" an IPO. 

I suggest that you contact the OA directly for guidance.  In practice, the staff are very helpful and will guide you through the process.  They will simply follow the legislation.

Jim Stafford


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## Adecco (10 Aug 2017)

Jim Stafford said:


> The legislation around IPOs is very prescriptive, and the OA has little latitude.  if your income increases after you have exited bankruptcy then you have to notify the OA who will increase the amount you have to pay.
> 
> You cannot "buy out" an IPO.
> 
> ...



Are you sure on that Jim?

I was actually asking on behalf of a family member. She also got professional advice from a solicitor specialising in insolvency who guided her through bankruptcy (although my trust in that 'expert' is reducing)
According to him, once you are out of bankruptcy, the IPO for the additional 2 years is maxed at that amount when you exited bankruptcy.

So what you are saying - effectively if you have an IPO for the additional 2 years, then you are in the claws of the OA for 3 years in total yes? As good as bankrupt for 3 years really to all intents and purposes in most peoples books in terms of disposable income.
It seems very harsh.

For example - in my sisters situation she had a slight increase towards the end of her bankruptcy meaning she was ever so slightly above the RLE. She revealed this to the OA at the time and paid out the surplus for the final 2 months of her bankruptcy. (It was something like €100 a month for 2 months i.e €200 in total)

SO you are saying now that every penny income is under the microscope for 2 more years because of this ? (As it happens her salary has increased quite a bit since exiting bankruptcy - she is of the belief that this has no need to tell the OA about this)

So presumably if she wins the proverbial lottery over the next 2 years that will all go to the OA also yes?

It certainly does not encourage people to come clean about any change in their circumstances while bankrupt.


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## Jim Stafford (6 Sep 2017)

Adecco, yes I am sure on that.

Lottery wins won post discharge are not captured, as they are not "income".

Jim Stafford


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