7. Your income

Your trustee will tell you if you have to make monthly payments from your spare income - you’ll only have to do this if you can afford it.

The arrangement can last for up to 3 years and is called an Income Payments Agreement (IPA).

If you’re getting pension payments when you’re made bankrupt, those payments usually 
count as income.

If you don’t agree to the IPA your trustee can ask the court to order you to make monthly payments. This is called an Income Payments Order (IPO).

Your official receiver will set up your IPA or IPO and charge a fee. The fee can be up to £150 and is taken out of your first payment.

How much you pay

The monthly amount you pay depends on how much you can afford after essential expenses like food and bills are paid.