If you are unable to agree on the payment amounts of an API, the agent can request an income payment order (IPO). If you do not comply with these payments, the agent may then apply to extend your insolvency. From 1 December 2010, in all new APIs with an excess debtor`s income of £20 or more, official beneficiaries will recover all excess revenue in monthly instalments under an IPA (or an IPO if an IPA cannot be agreed). When the official recipient knows how much they think you can afford, they ignore certain costs that they don`t consider essential. For example, if you spend £100 a month on tobacco, the official recipient will most likely add the £100 to your monthly DPI payment. This may mean that you cannot afford to continue paying for items that the official recipient deems unnecessary. The insolvent person may be required to make a contribution from his or her income for a maximum period of three years if the agent believes that he or she has an income payment decision or an income payment agreement on excess income. Employment and autonomy (including care income) If you have a leasing motability vehicle, it is up to you to keep it. You must take precedence over payments with your disability allowance or your personal independence payment. On the other hand, they will also forget about a certain income, so that, for example, if you receive a disability allowance (DLA) or a personal independence payment (PIP), this is not taken into account to assess what you could afford. If a bankrupt debtor does not maintain payments under the IPA (or a later agreed amendment), the agent is free to track the payment at source directly by the debtor`s employer using the details provided with the initial instruction. It is not necessary to ask a court to change the agreement if payment is required by an employer, since the debtor has already agreed to this by signing the IPA form, no further instructions from the official recipient/LTADT are required. If the third party is not the debtor`s employer, the official receiver/LTADT must apply in court to vary the IPA to obtain payment directly from the third party which could be, for example, the debtor`s maintenance provider.
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