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Debtdummy
Junior Member
United Kingdom
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 Posted - 23 March 2007 : 17:40:56
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Part 8 - IPOs APPLICATION TO COURT
December 2006
31.7.66 Arranging hearing date and notice to bankrupt
Where an IPA cannot be agreed and the trustee has decided to seek an IPO, the trustee should contact the appropriate court (at least 8 weeks ahead see Case Help Manual part Income Payments Orders, paragraph v, Application) to fix the hearing date and time (Chambers hearing). The trustee must send notice of the application and of the venue to the bankrupt (the official receiver as trustee should use form IPONA) at least 28 days prior to the hearing date. [note 1] A copy of the application and the report to court (form IPORAC) setting out the grounds of the application should also be sent. The bankrupt should be encouraged to attend the court hearing and will be given an opportunity during the hearing to make representations as to why the order should not be made or the terms sought varied.
31.7.67 Attachment of earnings order in force prior to IPO application
Where there is an attachment of earnings order in force against the bankrupt, the official receiver should draw the court’s attention to this in his/her report as the court may, if it thinks fit, discharge or vary such an order when making an IPO. [note 2] The official receiver should give notice of his/her application for an IPO, accompanied by an explanatory letter (form IPORAC), to any judgment creditor having an attachment of earnings order against the bankrupt to ensure that the funds subject to that order come within the scope of the IPO.
31.7.68 Action following making of order
Once made, a sealed copy of the order (form IPO) is placed on the court file and a further copy must be sent by the trustee to the bankrupt [note 3] (form IPO under cover of form IPOSV). An order may in the first instance be obtained directing a third party, usually the employer, to deduct the payments due from the bankrupt's salary at source. [note 4] However, orders should initially be sought directing the bankrupt to make the payments.
Where the order directs a third party to deduct payments at source, a sealed copy of the order shall also be sent by the trustee to the third party.
31.7.69 Instructions to RTLU and collection agents following the making of an IPO
Once the IPO is effective, unless there are other assets in the case which mean that it is likely that the appointment of an IP trustee will be made, the case must then be passed to the appropriate RTLU to monitor collection.
The procedure for instructing the collection agents used by the Service to collect payments under the IPO and notification of the appropriate RTLU is the same as that used when collecting payments under an IPA. This procedure is detailed at paragraph 31.7.47. See also Case Help Manual part Income Payments Orders, paragraph ix, Cases to go to RTLUs.
Where there are other assets and a trustee other than the official receiver is likely to be appointed the official receiver should not neglect to take those steps necessary to secure the payments under the IPO pending the appointment of the insolvency practitioner trustee.
[Back to Part 7] [On to Part 9]
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IPOs APPLICATION TO COURT-PART 8
