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    • debt doctor
    • By debt doctor 15th Apr 17, 5:07 PM
    • 4,019Posts
    • 5,671Thanks
    debt doctor
    IPAs are changing
    • #1
    • 15th Apr 17, 5:07 PM
    IPAs are changing 15th Apr 17 at 5:07 PM
    Hi all,
    The way IPAs are assessed is changing - or actually did change on the 3rd April 2017.
    The Household Expenditure Survey (HES) with its guidance allowances for expenditure is no longer used. Instead, the Money Advice Services Standard Financial Statement (SFS) is now used to assess what reasonable expenditure may be.
    Unlike the HES 'allowances' that are released on the Technical Manual - the SFS allowances are not released to the public and will not be published on the Technical Manual.
    The SFS is the new financial statement used by the debt advice industry (CAB, National Debtline, Stepchange etc) Compared to the CFS we previously used, its allowances are far less generous, which results in higher repayments to creditors and will make eligibility for entering in to a DRO tougher.
    There will, presumably, be an update on the technical manual in due course.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
Page 1
    • debt doctor
    • By debt doctor 15th Apr 17, 7:31 PM
    • 4,019 Posts
    • 5,671 Thanks
    debt doctor
    • #2
    • 15th Apr 17, 7:31 PM
    • #2
    • 15th Apr 17, 7:31 PM
    I haven't fully assessed yet as to whether this is a good thing or a bad thing for bankrupts.
    It's certainly a backward step for those entering DMPs and trying to obtain DROs but we are comparing wholly different criteria with bankruptcy.


    CFS V SFS - bad (DMPs / DROs)
    HES v SFS - (bankruptcy) not sure at the moment.


    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • CP1306
    • By CP1306 19th Apr 17, 2:58 PM
    • 9 Posts
    • 3 Thanks
    CP1306
    • #3
    • 19th Apr 17, 2:58 PM
    • #3
    • 19th Apr 17, 2:58 PM
    Will this affect those who have gone bankrupt recently, meaning can the OR go back and ask for higher payments on the IPA?
    • debt doctor
    • By debt doctor 19th Apr 17, 6:16 PM
    • 4,019 Posts
    • 5,671 Thanks
    debt doctor
    • #4
    • 19th Apr 17, 6:16 PM
    • #4
    • 19th Apr 17, 6:16 PM
    Will this affect those who have gone bankrupt recently, meaning can the OR go back and ask for higher payments on the IPA?
    Originally posted by CP1306
    It's all new and up in the air, but my view would be that if there were a change in circumstances of a bankrupt who had an IPA under HES 'rules' then it would likely be that the new circumstances via the SFS would be used at that point.
    Time will tell.


    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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