Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • LincsPaul
    • By LincsPaul 18th May 17, 2:31 PM
    • 79Posts
    • 27Thanks
    LincsPaul
    SOA vs reality
    • #1
    • 18th May 17, 2:31 PM
    SOA vs reality 18th May 17 at 2:31 PM
    There are a lot of threads about SOAs and maximising allowances to reduce IPAs etc. What I've read here and also on debtcamel (https://debtcamel.co.uk/tell-official-receiver) is that once the income and expenditure is agreed, what you do with your money is your business. But is this true?

    Scenario 1: You have a £60 per week budget for groceries and toiletries and £15 for public transport. Most weeks you only spend £40 in the supermarket and don't use the bus. Over a year that's an additional £1300 sitting in your bank account. Will the OR notice? Can it be taken? Should you withdraw it bit by bit to avoid any issue?

    I suppose it's a similar situation for those people on here who live with their parents and are advised to enter £400 a month room rent even if they are only being charged half that. What should they do with the unused money? Is it claimable?

    Scenario 2: As per scenario 1, there is money unused in your account each week. You spend this on a summer holiday or in the Dog and Duck. These transactions appear on your bank statement as you used your debit card. Problem?

    I've read that it's wise to underspend from your SOA in order to build up an emergency fund. But at what point will the OR think you are being dishonest and want to claim the cash?
Page 1
    • Mollie_Guinness15
    • By Mollie_Guinness15 18th May 17, 4:06 PM
    • 162 Posts
    • 83 Thanks
    Mollie_Guinness15
    • #2
    • 18th May 17, 4:06 PM
    • #2
    • 18th May 17, 4:06 PM
    I've been wondering just this too
    • TheGardener
    • By TheGardener 18th May 17, 6:12 PM
    • 2,171 Posts
    • 2,056 Thanks
    TheGardener
    • #3
    • 18th May 17, 6:12 PM
    • #3
    • 18th May 17, 6:12 PM
    To my knowledge, once an IPA has been set - only changes to your income are notifiable to the OR. In reality, most people HAVE to do make savings within their budget in order to pay for things not included in their SOA like a family birthday present etc or a meal out with friends. The Holiday allowance is so small, noone would really be able to afford a holiday on that alone would they. I haven't heard of anyone on here who's OR checked their bank statements after the budget was set (unless there are BRO's in place) and then claimed the 'savings' as an asset.

    If you are able to save that money, and you are concerned, then simply keep it somewhere less visible.
    • LincsPaul
    • By LincsPaul 18th May 17, 6:39 PM
    • 79 Posts
    • 27 Thanks
    LincsPaul
    • #4
    • 18th May 17, 6:39 PM
    • #4
    • 18th May 17, 6:39 PM
    To my knowledge, once an IPA has been set - only changes to your income are notifiable to the OR. In reality, most people HAVE to do make savings within their budget in order to pay for things not included in their SOA like a family birthday present etc or a meal out with friends. The Holiday allowance is so small, noone would really be able to afford a holiday on that alone would they. I haven't heard of anyone on here who's OR checked their bank statements after the budget was set (unless there are BRO's in place) and then claimed the 'savings' as an asset.

    If you are able to save that money, and you are concerned, then simply keep it somewhere less visible.
    Originally posted by TheGardener
    Thanks. I guess it's quite possible, although a bit of a faff, to withdraw money periodically in order to make the bank account seem 'less full'. PROVIDING the money is already earmarked to go towards food etc.

    I'm still wondering what the chances are of the OR asking for bank statements (or having a peek themselves if it's a pre-BR account) and getting upset when they see a Ryanair flight or something in there!
    • kimplus8
    • By kimplus8 18th May 17, 8:43 PM
    • 614 Posts
    • 1,987 Thanks
    kimplus8
    • #5
    • 18th May 17, 8:43 PM
    • #5
    • 18th May 17, 8:43 PM
    You are allowed to build up an 'emergency fund' so keep it back for that and once you are discharged if you want to put that towards a holiday then I suppose you can, I think once your budget is set and the OR is happy then your money is yours to do with as you please, and as long as you are not touting around in a Ferrari and go under the radar then you will be fine from what I have read on here.
    Single Momma, Member of £1000 Emergency fund Club Check out my Debt Free Diary
    • LincsPaul
    • By LincsPaul 19th May 17, 12:00 AM
    • 79 Posts
    • 27 Thanks
    LincsPaul
    • #6
    • 19th May 17, 12:00 AM
    • #6
    • 19th May 17, 12:00 AM
    You are allowed to build up an 'emergency fund' so keep it back for that and once you are discharged if you want to put that towards a holiday then I suppose you can, I think once your budget is set and the OR is happy then your money is yours to do with as you please, and as long as you are not touting around in a Ferrari and go under the radar then you will be fine from what I have read on here.
    Originally posted by kimplus8
    Thank you. No Ferrari so far (wink wink) but I'd be delighted to know from anybody who has gone through the experience recently whether the OR peeks at our accounts to check whether x amount has indeed been spent on what is was supposed to or not, and whether any 'build up' of cash is taken.
    • Steven_from_scotland
    • By Steven_from_scotland 19th May 17, 5:13 PM
    • 44 Posts
    • 16 Thanks
    Steven_from_scotland
    • #7
    • 19th May 17, 5:13 PM
    • #7
    • 19th May 17, 5:13 PM
    I went bankrupt through a company, there was some positive equity in my home and I still managed to keep that but agreeing that a relative would pay a monthly sum for my 36months IPA period that covered the equity, I have had my review period every 6 months where I have to provide both 6months of bank statements and wage slips, I have been on holiday and booked flights with my card and they didn't mention anything, I'm at 26months stage so only 10months worth of payments to go and 1 last period of handing in wage/bank slips, as long as they are getting their fees they don't seem to be too bothered what I'm spending my money on
    • LincsPaul
    • By LincsPaul 20th May 17, 5:49 PM
    • 79 Posts
    • 27 Thanks
    LincsPaul
    • #8
    • 20th May 17, 5:49 PM
    • #8
    • 20th May 17, 5:49 PM
    I went bankrupt through a company, there was some positive equity in my home and I still managed to keep that but agreeing that a relative would pay a monthly sum for my 36months IPA period that covered the equity, I have had my review period every 6 months where I have to provide both 6months of bank statements and wage slips, I have been on holiday and booked flights with my card and they didn't mention anything, I'm at 26months stage so only 10months worth of payments to go and 1 last period of handing in wage/bank slips, as long as they are getting their fees they don't seem to be too bothered what I'm spending my money on
    Originally posted by Steven_from_scotland
    Great. At what point did they ask you to send statements in? I am currently unemployed so they haven't asked for anything but I am wondering if they will start once I get another job.

    Interesting that they ask for bank statements when technically they have the power to look for themselves. What's to stop you having two accounts?! (Not advising dishonesty here!).

    I guess that is what I was worried about - money building up to a few hundred through groceries savings etc and them swiping it away just before discharge.
    • skylineboy2002
    • By skylineboy2002 25th May 17, 6:28 PM
    • 118 Posts
    • 31 Thanks
    skylineboy2002
    • #9
    • 25th May 17, 6:28 PM
    • #9
    • 25th May 17, 6:28 PM
    you could always get a pre paid debit card..

    take cash out of you bank, then "load" this pre paid card up at various shops / post offices etc, like paypoint i think, and then you have a debit card which has ONLY the balance you loaded up.

    EG, £50 out of bank account in cash, from ATM.

    go to whereever to load up the pre paid card

    then you can use this card online or in shops like any chip pin card to pay for stuff, and yes they may charge 50p-£1 for this, but the money doesnt appear to have come from your main account, as its cash out that will show on your main bank account statement, not where its gone to!
    18 litre office water bottle - - amount unknown...
    • elljay
    • By elljay 26th May 17, 1:57 PM
    • 742 Posts
    • 618 Thanks
    elljay
    My IPA runs out soon and I've had several reviews during the period as my income has gone up and down. Although I've done a revised IPOQ each time I've never been asked for bank statements.

    I've always felt my IPA was generous (£50 per week for one person for groceries etc) so as I spend about half of that I built up quite reasonable savings in a Credit Union account and a Co-op online saver.These I've used for larger household repairs, new car engine(would never have been able to afford that pre-bankruptcy) a few holidays etc. No Ferraris but it's been nice to be able to pay for these bigger things without worrying.

    I think one of the main things that reading this forum has taught me is that there are huge inconsistencies between OR offices and what works for one person can be different for someone else.

    EJ
    • Mollie_Guinness15
    • By Mollie_Guinness15 26th May 17, 2:51 PM
    • 162 Posts
    • 83 Thanks
    Mollie_Guinness15
    The new IPOQ asks if you put away savings regularly and how much. In fact the new one is much lengthier and more detailed than the old one.
    • luvchocolate
    • By luvchocolate 26th May 17, 5:06 PM
    • 1,486 Posts
    • 1,336 Thanks
    luvchocolate
    This makes it harder for us that went B.R prior to the changes to advice.
    You people that have gone through it recently will be of more help, but we will reply when we can.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

246Posts Today

1,329Users online

Martin's Twitter
  • Have a lovely weekend folks. Don't do anything (fiscally) that I wouldn't do!

  • RT @thismorning: With his last deals of the year, @MartinSLewis wishes us all a 'very merry Christmas, a happy Hanukkah and a wonderful and?

  • RT @stoneygran: @MartinSLewis I furtively used a pub toilet last night before getting on the bus and felt really guilty!

  • Follow Martin