What Is an IPA? Income Payments Agreement Explained

An Income Payments Agreement (IPA) is a legally binding agreement to pay your surplus income to your trustee (usually the Official Receiver) for up to 3 years.

If you do not agree to an IPA, the OR can apply to court for an Income Payments Order (IPO), imposing an amount and terms on you.

Key points

• Triggered only when your surplus income is above a threshold (commonly around £20/mo).
• Calculated using the Standard Financial Statement (SFS) framework — income minus allowed expenses.
• Lasts typically 3 years, even though you might be discharged from bankruptcy after 12 months.
• You must report income changes (up or down) — IPA payments can be adjusted.

How to negotiate confidently

Use Debtrupt's Surplus Calculator before your OR interview. Categories mirror the SFS framework so you arrive with realistic numbers and a defensible position.

What if your income falls during the IPA?

Tell the OR promptly. They can reduce, suspend or pause IPA payments while you are between jobs or on reduced hours. Do not silently stop paying — that triggers enforcement.