Insolvency Rules 2016 - Application for income payments orders and income payments agreements

read time: 3 mins
26.04.17

The rules relating to income payment orders ("IPO") and income payment agreements ("IPA") are largely unchanged. The time periods dictated in the old rules for IPOs and IPAs remain the same, however there are some added requirements in the new rules, particularly in relation to the contents of notices and orders.

Rule 10.109 Application for income payments order (section 310)

[…]

(4) the notice to the bankrupt must be authenticated and dated by the trustee.

Rule 10.110 Order for income payments order

An order under section 310 must have the title “Income Payments Order” and must contain—

(a)          identification details for the proceedings;
(b)          identification and contact details for the trustee;
(c)           a statement that the bankrupt has or has not consented to the order;
(d)          the order that it appears to the court that the sum which is specified in the order should be paid to the trustee in accordance with the payments schedule detailed in the order until the date specified in the order;
(e)          the order that the bankrupt must pay to the trustee the sum referred to in paragraph (e) in accordance with the payments schedule out of the bankrupt's income, the first of such instalments to be made on or before the date specified in the order; and
(f)           the date of the order.

Rule 10.112 Variation of order

Where the bankrupt has not complied with the IPO, the trustee may apply to the court for the order to be varied, so as to take effect under section 310(3)(b) as an order to the payer of the relevant income.

[…]

(3) The order must contain—
(a)          identification details for the proceedings;
(b)          identification and contact details for the trustee who made the application;
(c)           the name and address of the payer;
(d)          a statement that the applicant is the trustee of the bankrupt;
(e)          the date of the IPO;
(f)           a statement that it appears to the court that the bankrupt has failed to comply with the IPO;
(g)          the order that the IPO be varied to the effect that the payer specified in this order do take payment in accordance with the payments schedule detailed in this order out of the bankrupt's income and that the first instalment must be paid on the date specified in the order; and that the payer must deliver the sums deducted to the trustee; and
(h)          the date of the order.

Rule 10.114 Review of order

[…]

(7) The trustee may do either or both of the following—
(a)          file a report of any matters which the trustee thinks ought to be drawn to the court's attention; or
(b)          appear and be heard on the application.

(8) The trustee must file a copy of a report under paragraph (7)(a) with the court not less than five business days before the date fixed for the hearing and must deliver a copy of it to the bankrupt.

(9) The court order must contain—
(a)          identification details for the proceedings;
(b)          the name and title of the judge making the order;
(c)           the name and postal address of the applicant;
(d)          an order that the IPO specified is varied as specified;
(e)          the date of the IPO referred to in paragraph (d);
(f)           details of how the IPO is varied by this order; and
(g)          the date of the order.

Rule 10.117 Variation of income payments agreements

The court order must contain the same details as rule 10.114 paragraph 9 above in relation to the IPA. 

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