Income payments orders and agreements

Income payments orders

An income payments order (IPO) allows for the court to direct under section 310 of the Insolvency Act 1986 (IA 1986) that the income of the bankrupt—or more likely a proportion of it—be paid to the official receiver (OR) or any appointed trustee in bankruptcy (trustee), if not the OR.

An IPO requires the bankrupt or a third party to make a payment or payments to the OR or trustee. A third party for these purposes is usually the bankrupt’s employer.

The amount ordered to be paid is determined on a case-by-case basis but will typically be the bankrupt's surplus income once reasonable living expenses for the bankrupt and their family have been deducted. The payments will usually continue for a period of three years from the date of the IPO but cannot exceed that period. The