Challenge IPA?

Maverick1103 · 7 March 2018 at 9:58AM

Hi All,

I already have a thread going here I'm posting again just for assistance with an IPA and I'm pushed for time and believe my question in that thread has been missed.

As you can see from my thread I'm now Bankrupt, I've had my phone interview (which was very quick, 25mins) and I received a letter 2 days ago stating it's been arranged that I pay £24 a month into an IPA for 36 months, granted it's not a huge amount £864 in total, however as I was -£5 surplus I wasn't expecting to have to pay anything.

Below is a copy of my SOA (my half of bills):

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1441
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1441

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 310
Management charge (leasehold property).. 0
Council tax............................. 55
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 20
Telephone (landline)................... 0
Mobile phone............................ 64
TV Licence.............................. 12.5
Satellite/Cable TV...................... 18
Internet Services....................... 12.5
Groceries etc. ......................... 358
Clothing................................ 25
Petrol/diesel........................... 60
Road tax................................ 19
Car Insurance........................... 69
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child-related expenses............ 230
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 11
Other insurance......................... 12
Presents (birthday, Christmas etc)...... 10
Haircuts................................ 15
Entertainment/Hobbies ........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1436

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,441
Expenses (including HP & secured debts). 1,436
Available for debt repayments........... 5
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 5

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

To add to the above, my partner's figures aren't shown we pay everything 50/50 except groceries and rent, where I pay a bit more, our joint groceries is £570 and total rent is £525.

What's everyone's thoughts and has anyone successfully got this amount changed? I've got 14 days from the date of the letter (a week has gone due to the weather) and I've got to send it back in written form. We're talking about £6 a week here really, however, I feel if I challenge the amount the OR potentially may start investigating things a little deeper, which is just my thoughts?

I've emailed the case officer already asking if they would accept communication via email and she stated I can ask any questions.

Thanks,

National_Debtline · 7 March 2018 at 12:29PM

Hi Maverick1103,

You can write back to the OR and ask for further explanation of the IPA if the letter isn't clear which figures they have amended to generate this surplus. Looking at your budget (and previous post), they may have disregarded the £11 of life insurance, unless you have bought your interest back from the OR. So that could mean an instant surplus of £6.

On top of that, they may say that things such as the mobile phone(s) is a bit high, and reduced the allowance for this and similarly for the gas and electric. If you and your partner split this bill 50/50 then the fuel would cost £160per month, which seems quite high. Nothing else seems especially high, however, it will always boil down to the discretion of the OR.

The Insolvency Technical Manual discusses IPA and applications to vary them in more detail. Section 31.7.163 to 31.7.166.Hope that helps.

Laura
@natdebtline

Maverick1103 · 7 March 2018 at 12:54PM

National_Debtline wrote: »

Hi Maverick1103,

You can write back to the OR and ask for further explanation of the IPA if the letter isn't clear which figures they have amended to generate this surplus. Looking at your budget (and previous post), they may have disregarded the £11 of life insurance, unless you have bought your interest back from the OR. So that could mean an instant surplus of £6.

On top of that, they may say that things such as the mobile phone(s) is a bit high, and reduced the allowance for this and similarly for the gas and electric. If you and your partner split this bill 50/50 then the fuel would cost £160per month, which seems quite high. Nothing else seems especially high, however, it will always boil down to the discretion of the OR.

The Insolvency Technical Manual discusses IPA and applications to vary them in more detail. Section 31.7.163 to 31.7.166.Hope that helps.

Laura
@natdebtline

Hi Laura,

Thanks for your reply.

Yes, I thought that would be the case, the case officer told me I would have to buy it back or cancel it, therefore I've cancelled my policy.

I see, well I cannot lower my mobile phone plan until I'm out of contract so I cannot do anything about that, Gas & Elec is true figures as it is what we pay on a pay as you go meter, we are trying to work out if we can reduce these figures and put into groceries, whilst still building up gas credit ready for next winter.

I've emailed the case officer so will see what she comes back with.

Thanks,

Maverick1103 · 7 March 2018 at 3:58PM

I've spoken to the case officer not long ago, I had emailed her earlier to request further information regarding how the surplus was calculated, all she said was that she'd need to work out the calculations again and get back to me, she did mention though that I needed to up my groceries allowance I can't set it ridiculously high etc.

So will just wait for her to get back to me now and go from there.

Maverick1103 · 8 March 2018 at 12:08PM

Bumping this, I would appreciate if a few others wouldn't mind chiming in, please.

Thanks

LincsPaul · 11 March 2018 at 2:11PM

Not an expert on the allowed amounts but mobile phone is way above what I expect they would allow. They'll probably give you 30 or 40 and the rest just has to come from savings you make in other areas.

Anyway, I've seen Debt Doctor on here say many times... don't sign an IPA that's less than a £100 a month. Simply refuse (politely). Remember the A stands for agreement, and you don't have to agree. They will never take you to court for the paltry sum they are asking for, a judge wouldn't be amused.

TheGardener · 11 March 2018 at 7:17PM

Add something for car parking - at least £10 per month
Water rates are low?
Holidays - add around £50 (for the family)
Emergency fund - add £50 (for the family)
Phone /TV/Internet are fine
Are you paying into a pension? if not you should be...6 to 8% of your income is fine
Contact lenses? £20 per month
Dentist? £15 per month (2 check ups and a filling per year)
I don't seem to go very far in any given month but spend at least £80 per month on petrol...
Tell the OR you have revisited your SOA and (due to the stress of the BR) had not given it enough consideration - now you have had time to reflect you realise you have not been as thorough as you should have been.

bewildered1 · 11 March 2018 at 7:32PM

I didn't think the OR allows payments to be made into a pension scheme. Am I incorrect?

I ask because I would like to continue paying into my works pension scheme but thought I would have to stop once I am declared bankrupt.

TheGardener · 11 March 2018 at 7:36PM

bewildered1 wrote: »

I didn't think the OR allows payments to be made into a pension scheme. Am I incorrect?

Yes - you are incorrect. You absolutely, definitely are able - and should - carry on with a government approved (almost all are) works pension scheme. The OR is no longer able to take pensions as assets.

bewildered1 · 11 March 2018 at 9:28PM

TheGardener wrote: »

Yes - you are incorrect. You absolutely, definitely are able - and should - carry on with a government approved (almost all are) works pension scheme. The OR is no longer able to take pensions as assets.

That's great news. Thanks for clearing that up.

Maverick1103 · 12 March 2018 at 12:28PM

TheGardener wrote: »

Add something for car parking - at least £10 per month
Water rates are low?
Holidays - add around £50 (for the family)
Emergency fund - add £50 (for the family)
Phone /TV/Internet are fine
Are you paying into a pension? if not you should be...6 to 8% of your income is fine
Contact lenses? £20 per month
Dentist? £15 per month (2 check ups and a filling per year)
I don't seem to go very far in any given month but spend at least £80 per month on petrol...
Tell the OR you have revisited your SOA and (due to the stress of the BR) had not given it enough consideration - now you have had time to reflect you realise you have not been as thorough as you should have been.

Thanks for your response.

I haven't added car parking as I don't or very rarely use paid car parks, so do you recommend adding it still?
Water bill is £34 a month, so my share is £17 as are most of the bills except Rent and Shopping where I pay more than 50% due to earning more than my partner.
Yes, I pay for a work pension.

My 14 days is up Wednesday, I was about to send the completed form back today agreeing to pay the £24 however I think I may challenge it now, is there any templates I can use or do I simply write a lettter stating I challenge it with the reason behind it?

Thanks

Challenge IPA?

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