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...
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