In the case of Rayatt (Re: Rayatt (A Bankrupt)  B.P.I.R. 495[note 24], the court found that tuition fees could be considered reasonable national income order requirements in order to remove the oldest child from the liquidator from the fee-paying school she attended shortly before GCSE`s income would have an undue impact on their training. When the official recipient finds out how much they can afford, they ignore certain costs that they do not consider essential. For example, if you spend $100 a month on tobacco, the official beneficiary will likely add the $100 to your monthly ipa payment. This may mean that you cannot afford to pay for items that the official recipient deems unnecessary. The liquidator or official agent must ensure that an agreement with the liquidator regarding periodic payments from his income is recorded only where the liquidator can afford it. In Boyden/Watson  B.P.I.R. 1131, Manchester County Court, District Judge E R Jones 27 January 2004 [Note 23], the court found that the only issues requiring consideration were the amount the liquidator could afford and for what period. The agent`s application was rejected because the Tribunal (after reviewing the liquidator`s statement on the adequacy of his monthly expenses) had decided that an IPO was not possible, as this would reduce the liquidator`s revenues to less than the amount needed to meet his reasonable national needs. After finding that the liquidator has a surplus of contributions, the court is not obliged to take into account the size of the contribution.
An IAP/IPO may be registered if the amounts received after the payment of fees and fees are not sufficient to allow distribution to the liquidator`s creditors. [Official destination against Negus  EWHC 3719 (Ch)]. The payments you make are used to cover part of the costs of managing your bankruptcy and make payments to your creditors. Normally, your creditors are only paid a small portion of their debts in this way. If you do not accept it, the court could make a profit payment order (IPO). Normally, if you have more than $20 in disposable income per month, you are expected to pay just like your IPA or IPO payment. So the more disposable income you have, the more you have to pay. In addition, you may be asked to pay extra when you work because your income tax stops the rest of the year and does not restart until next April. But you can`t maintain the tax – you also have to pay it to the official beneficiary. Your disposable income is what is left after the cost of daily living has been paid for you and your family.