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  • FIRST POST
    • haggis0073
    • By haggis0073 1st Oct 17, 4:12 PM
    • 28Posts
    • 7Thanks
    haggis0073
    Tax credit payments SOA advice
    • #1
    • 1st Oct 17, 4:12 PM
    Tax credit payments SOA advice 1st Oct 17 at 4:12 PM
    hi there, i am starting to fill out my soa form and had a question about tax credits

    There is me, my wife and three dependant children and its ME who is going bankrupt

    I am the only one who works earning £280 per week net

    I also recieve £9.54 a week in working tax credits paid into my bank

    My wife recieves £125 per week into her bank in child tax credits (it should be more but we have overpayments which they are taking)

    Also we recieve £192 every 4 weeks in child benefit paid into wifes bank

    So do i have to declare all of the above payments as MY total income on the soa form, or is some of the child tax credits classed as my wifes and therefore i only put some of it in
Page 1
    • chiefcrust1983
    • By chiefcrust1983 1st Oct 17, 5:56 PM
    • 4 Posts
    • 0 Thanks
    chiefcrust1983
    • #2
    • 1st Oct 17, 5:56 PM
    • #2
    • 1st Oct 17, 5:56 PM
    I included child tax credit and child benefit payments in my SOA even though there in my partners name and paid into her bank account
    • haggis0073
    • By haggis0073 1st Oct 17, 7:40 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    • #3
    • 1st Oct 17, 7:40 PM
    • #3
    • 1st Oct 17, 7:40 PM
    ok cheers, so i added them on have come up with this, what is everyones thoughts, i have been as honest as possible although was unsure for the clothing part and birthdays/xmas part
    • haggis0073
    • By haggis0073 1st Oct 17, 7:41 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    • #4
    • 1st Oct 17, 7:41 PM
    • #4
    • 1st Oct 17, 7:41 PM
    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.................... 1

    Monthly Income Details

    Monthly income after tax................ 1213
    Partners monthly income after tax....... 0
    Benefits................................ 733
    Other income............................ 0
    Total monthly income.................... 1946


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 390
    Management charge (leasehold property).. 0
    Council tax............................. 68
    Electricity............................. 108 (prepayment meter)
    Gas..................................... 52 (prepayment meter)
    Oil..................................... 0
    Water rates............................. 50
    Telephone (land line)................... 0
    Mobile phone............................ 60 (mine and my wifes both in my name)
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 48 (tv line included)
    Groceries etc. ......................... 563
    Clothing................................ 80 (unsure)
    Petrol/diesel........................... 130
    Road tax................................ 16
    Car Insurance........................... 33
    Car maintenance (including MOT)......... 20
    Car parking............................. 15
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 30 (ongoing steroid treatment)
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50 (unsure)
    Haircuts................................ 40
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 20 (unsure)
    Total monthly expenses.................. 1791



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 1000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    capital one....................1778......63........0
    luma card......................1000......37........0
    Aqua...........................1530......57....... .0
    woolworths (now very)..........3230......100.......0
    very...........................3758......100...... .0
    littlewoods....................1630......25....... .0
    tesco..........................1185......37....... .0
    tesco..........................3156......38....... .0
    mbna...........................2000......27....... .0
    barclaycard....................1331......46....... .0
    marks & spencer................4000......98........0
    clydesdale.....................489.......5........ .0
    vanquis........................4000......183...... .0
    Total unsecured debts..........29087.....816.......-



    Monthly Budget Summary

    Total monthly income.................... 1,946
    Expenses (including HP & secured debts). 1,791
    Available for debt repayments........... 155
    Monthly UNsecured debt repayments....... 816
    Amount short for making debt repayments. -661


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -29,087
    Net Assets.............................. -28,087


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by haggis0073; 01-10-2017 at 7:47 PM.
    • ToxtethO'Grady
    • By ToxtethO'Grady 1st Oct 17, 10:30 PM
    • 72 Posts
    • 37 Thanks
    ToxtethO'Grady
    • #5
    • 1st Oct 17, 10:30 PM
    • #5
    • 1st Oct 17, 10:30 PM
    Is the tax credit overpayment in joint or your wife's name? If joint your liability towards it will end and you should put it on your list of debts

    Where did you get valuation for your car? Try it on Parkers or get a few from garages. The OR won't accept it if its webuyanycar.

    You will probably get an IPA based on your SOA as it is. Have you not got contents or life insurance? Do your children get free school meals? And do you have to pay for trips/activities for the kids?
    Last edited by ToxtethO'Grady; 01-10-2017 at 10:35 PM. Reason: missing information
    • haggis0073
    • By haggis0073 1st Oct 17, 10:56 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    • #6
    • 1st Oct 17, 10:56 PM
    • #6
    • 1st Oct 17, 10:56 PM
    Is the tax credit overpayment in joint or your wife's name? If joint your liability towards it will end and you should put it on your list of debts

    Where did you get valuation for your car? Try it on Parkers or get a few from garages. The OR won't accept it if its webuyanycar.

    You will probably get an IPA based on your SOA as it is. Have you not got contents or life insurance? Do your children get free school meals? And do you have to pay for trips/activities for the kids?
    Originally posted by ToxtethO'Grady
    the tax credits are joint, i was under the impression if i go bankrupt then my wife would assume liability for it, and so the overpayments would still need to be paid, and as i am the only one working i would still need to pay for it somehow as my wife does not work

    i got the valuation from autotrader valuation, it said £960, it is a 2008 diesel zafira but has 189,000 miles on the clock and in average condition.

    We dont have insurance as mentioned above but are looking into it but at the moment we cannot afford it, the kids dont get free meals no but i have read on other threads that the OR would tell you to do packed lunches and would possibly remove the amount you put in

    I did not see anything for school trips, i take it this is under the "other child related expenses" section, if so then yes they do go on trips throughout the year, i can add £15 a month which hopefully would cover it, its just hard as we never know when they are going away and how much it will cost until a month or so before
    • Steven_from_scotland
    • By Steven_from_scotland 2nd Oct 17, 2:54 AM
    • 37 Posts
    • 13 Thanks
    Steven_from_scotland
    • #7
    • 2nd Oct 17, 2:54 AM
    • #7
    • 2nd Oct 17, 2:54 AM
    You don't want to be getting left with a IPA, raise a few of your things, put in figures for kids going to clubs £40pm,
    Increase your petrol costs another £50,
    Put in figures for a holiday £15,
    Put in entertainment £20
    You might aswel open up a life insurance account £15
    Same with buildings and contents insurance £20
    • haggis0073
    • By haggis0073 2nd Oct 17, 3:13 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    • #8
    • 2nd Oct 17, 3:13 PM
    • #8
    • 2nd Oct 17, 3:13 PM
    ok will re do soa and update once done tonight cheers
    • ToxtethO'Grady
    • By ToxtethO'Grady 2nd Oct 17, 11:57 PM
    • 72 Posts
    • 37 Thanks
    ToxtethO'Grady
    • #9
    • 2nd Oct 17, 11:57 PM
    • #9
    • 2nd Oct 17, 11:57 PM
    Hi Haggis thanks for the reply.
    With the tax credits they reduce the ongoing award as your wife would become solely liable, it is a debt though in your name so should be mentioned on the list of debts.
    The OR uses the Parkers website and you can get a free valuation if you register, means you will have a really good idea of what they will be expecting.
    Try to factor in annual cost in your SOA, for instance, how much is spent on Christmas and birthdays? Divide that by 12. School uniforms are a once a year cost, divide by 12. The OR do allow you to plan for the year ahead so putting money aside for these things is not frowned upon.
    You can search online for the Insolvency Service technical manual around income payment agreements and that will give you an idea of what they look at.
    Hope this helps
    • haggis0073
    • By haggis0073 3rd Oct 17, 4:02 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    thats a great help and i have found the manual, thanks. Instead of editing the soa i have i will re do it again after work late tonight and re post with new figures and the included tax credit overpayments and rent arrears.

    If my wife smokes do i need to put that in under expenses as its bought out of our household expenses. I understand its not allowed so not sure how it will affect my wife

    What did you mean "reduce the ongoing award", as its already been reduced to cover overpayments. will it reduce further after my bankruptcy. cheers
    Last edited by haggis0073; 03-10-2017 at 4:05 PM.
    • Butts
    • By Butts 3rd Oct 17, 6:18 PM
    • 147 Posts
    • 46 Thanks
    Butts

    If my wife smokes do i need to put that in under expenses as its bought out of our household expenses. I understand its not allowed so not sure how it will affect my wife
    Originally posted by haggis0073
    This seems to be a grey area. There is section on the offical online BR form for smoking expenditure. The consensus of opinion seems to be to include it within household expenses.

    Personally as with Alcohol (which also has a section) it seems crazy to me that these are on the official form but not to be utilised.
    • haggis0073
    • By haggis0073 4th Oct 17, 1:30 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    its almost like they add the sections to guarantee themselves an ipa

    I paid parkers £3 for car valuation as I had high mileage on car and good news is that it's only valued at 800 so no asset

    I have re done my soa with new updated figures

    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.................... 1

    Monthly Income Details

    Monthly income after tax................ 1213
    Partners monthly income after tax....... 0
    Benefits................................ 733
    Other income............................ 0
    Total monthly income.................... 1946


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 390
    Management charge (leasehold property).. 0
    Council tax............................. 68
    Electricity............................. 108
    Gas..................................... 52
    Oil..................................... 0
    Water rates............................. 50
    Telephone (land line)................... 0
    Mobile phone............................ 60
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 48
    Groceries etc. ......................... 563
    Clothing................................ 80
    Petrol/diesel........................... 173
    Road tax................................ 16
    Car Insurance........................... 33
    Car maintenance (including MOT)......... 25
    Car parking............................. 20
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 30
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 50
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 20
    Pocket Money............................ 40
    School Uniforms......................... 10
    newspapers, postage and stationary...... 5
    School Trip/after shool clubs........... 20
    Total monthly expenses.................. 1944



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 800


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    capital one....................1778......63........0
    Luma card......................1000......37........0
    Aqua...........................1530......57....... .0
    rent arrears...................883.......20........0
    tax credit overpaymen..........2136......0.........0
    advent loan....................1074......179.......0
    vanquis........................4000......183...... .0
    clydesdale.....................489.......5........ .0
    marks & spencer................4000......98........0
    barclaycard....................1331......46....... .0
    mbna...........................2000......27....... .0
    tesco..........................3156......38....... .0
    tesco..........................1185......37....... .0
    littlewoods....................1630......25....... .0
    Very...........................3758......100...... .0
    Woolworths (now very)..........3230......100.......0
    Total unsecured debts..........33180.....1015......-



    Monthly Budget Summary

    Total monthly income.................... 1,946
    Expenses (including HP & secured debts). 1,944
    Available for debt repayments........... 2
    Monthly UNsecured debt repayments....... 1,015
    Amount short for making debt repayments. -1,013


    Personal Balance Sheet Summary
    Total assets (things you own)........... 800
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -33,180
    Net Assets.............................. -32,380


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by haggis0073; 04-10-2017 at 4:25 PM.
    • Butts
    • By Butts 4th Oct 17, 6:23 PM
    • 147 Posts
    • 46 Thanks
    Butts
    You may need Debt Doctor to confirm this but under the SFS your "Groceries" or Food and Housekeeping look a bit low to me.

    On the proper Bankruptcy Form Food and Housekeeping includes:

    Groceries
    Laundry
    Alcohol
    Smoking
    Vets Bills
    Repairs

    As you have a wife and three kids by my reckoning a total just north of £800 would not be out of the question - certainly late £700's.
    • ToxtethO'Grady
    • By ToxtethO'Grady 5th Oct 17, 7:17 PM
    • 72 Posts
    • 37 Thanks
    ToxtethO'Grady
    With the tax credits if they've already reduced it they'll be no change just your liability will be removed.
    • haggis0073
    • By haggis0073 6th Oct 17, 12:51 PM
    • 28 Posts
    • 7 Thanks
    haggis0073
    You may need Debt Doctor to confirm this but under the SFS your "Groceries" or Food and Housekeeping look a bit low to me.

    On the proper Bankruptcy Form Food and Housekeeping includes:

    Groceries
    Laundry
    Alcohol
    Smoking
    Vets Bills
    Repairs

    As you have a wife and three kids by my reckoning a total just north of £800 would not be out of the question - certainly late £700's.
    Originally posted by Butts
    Hopefully he will be along shortly,

    Before getting in contact with national debtline (Amazing help so far) i used the stepchange debt remedy tool and that suggested i only put £346 a month for household, different figures everywhere lol
    • Butts
    • By Butts 6th Oct 17, 1:32 PM
    • 147 Posts
    • 46 Thanks
    Butts
    Hopefully he will be along shortly,

    Before getting in contact with national debtline (Amazing help so far) i used the stepchange debt remedy tool and that suggested i only put £346 a month for household, different figures everywhere lol
    Originally posted by haggis0073
    The only ones that really count are those on the SFS Guidelines that the OR "roughly" sticks to allowing for the mismatch between the SFS categories and those on the BR Form. Unless you experience it for real the rest is merely speculation.
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