Advice for a newbie needed please!

jmach

Ahhh, now i think its finally clicking!!, will sit down tonight when the kiddies are in bed and try and make sense of it all!

Thanks again


Jen

LilyBart

To get the percentage, you add the two incomes together, then divide each income by the total income and multiply by 100. Then you work out each person's I+E and cross-check that the two added together are the same as the total. (Aaaargh!) Then, because they only like whole £s on the forms, you have to sort of wiggle things around again so that all the little point sixty-four, point ninety-two pences on real life bills don't all gang up into "lost" pounds that will then come back to haunt you! Honestly, Jen, I was *weeping* doing this but it's kind of worth it in the end! The satisfaction I felt was identical to when I stuck my arm down the drain and pulled a great ball of detergent and cooking fat out and avoided having to call a specialist drain cleaner. It's not rocket-science, it's just a dirty job that you probably never anticipated doing for yourself.
Lily

jmach

Lol Lily at the drain problem (i would have made hubby do it!!!)
OK - having a quiet time at work so thought i would have a go at splitting our outgoings - sorry to be a pain but can you have a quick look to see if it looks right -

My SOA

Monthly income after tax................ 780
Benefits................................ 165 ( I have put CHB & Child Tax Credits all on my wage)
Other income............................ 0
Total monthly income.................... 945

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 198
Management charge (leasehold property).. 0
Council tax............................. 29
Electricity............................. 20
Gas..................................... 23
Oil..................................... 0
Water rates............................. 9
Telephone (land line)................... 36
Mobile phone............................ 0
TV Licence.............................. 5
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 180
Clothing................................ 30
Petrol/diesel........................... 57
Road tax................................ 6
Car Insurance........................... 17
Car maintenance (including MOT)......... 11
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 28
Pet insurance/vet bills................. 11
Buildings insurance..................... 0
Contents insurance...................... 4
Life assurance ......................... 4
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 22
Emergency fund.......................... 0
Total monthly expenses.................. 805

Total monthly income.................... 945
Expenses (including secured debts)....... 805
Available for debt repayments........... 140








OH SOA

Monthly income after tax................ 1350
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1350

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 352
Management charge (leasehold property).. 0
Council tax............................. 51
Electricity............................. 34
Gas..................................... 41
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 19
Mobile phone............................ 0
TV Licence.............................. 7
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 320
Clothing................................ 50
Petrol/diesel........................... 103
Road tax................................ 9
Car Insurance........................... 30
Car maintenance (including MOT)......... 19
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 180
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 28
Pet insurance/vet bills................. 19
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 13
Entertainment........................... 0
Holiday................................. 38
Emergency fund.......................... 0
Total monthly expenses.................. 1342



Total monthly income.................... 1,350
Expenses (including secured debts)....... 1,342
Available for debt repayments........... 8

Total Joint Income = 2295 still, joint outgoings = £2147 hubby left with £8 and im left with £140 surplus. ( i have worked this out on my contribution of 36% and OH 64%)

Have i done it right and do you think it looks feasible?

Thanks


Jenny

LilyBart

Gosh. Without a good hour or so to spare, and perhaps a valium, I can't really check the details well enough for you to commit pen to paper. What I would say having glanced at it is something must have gone HORRIBLY wrong somewhere because if you're earning 36% and he's 64%, you shouldn't be left with £140 surplus and he with only £8.

Ideally, you should be able to move some figures around so that that the £148 total surplus is shared more evenly, thereby (hopefully) avoiding an IPA. OK, I just caved in and did the figure for the surplus based on your percentages and 36% of £148 is £53.28, leaving £94.72 surplus for your OH. See what I mean? Try it again and see what comes out. And then you might consider trying it split 35/65. And then you might have anothe rgo and see what it looks like minus the child benefit (see below).

If it's any consolation, it took me the best part of a very miserable day to get my and Billy's I+E into shape. Go back to your notebook and try again. Very sorry to suggest such a horrid complicated exercise then leave you in the lurch but I've got to get back to work. Will check in later some time. Good luck.
Lily

nb FOR THE OTHERS: please can we get a few views for Jenny on whether or not she should include child benefit as income? I know some ORs do count this as income, though I believe they're not supposed to. Fermi has the relevant passage from the manual to quote, I think. In our case, we were told to make a note of the child benefit but not to include it as income.

jmach

Thanks Lily for replying - i know its a lot to ask - please dont spend the time working through the SOA - i just wanted to make sure im on the right lines - will get back to some work now myself and look again later! - also if i didnt include the child benefit as income that would reduce my surplus to a negative amount.

Thank you - your'e a star!

Jenny

Waspeze

I think you include it (child benefit) but it cannot be taken into account when calculating an IPA. So it gets put on your SoA but it then gets taken off any surplus before seeing if there's any left for an IPA.

I will just say it seems very complicated using exact percentages relating to income etc ... don't forget that you can explain outgoings etc in the OR interview, I only said half it to keep it simple

philnicandamy

Correct waspy

An IPO or IPA would not be sought where the bankrupt’s only or main source of income is state benefit payments. The High Court has also stated as a matter of public policy that child benefit and similar benefits should not be included in the statement of income when applying for an IPO.

http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm

jmach

thank you both, i think im getting there now (slowly!)

peachyprice

OK, (sorry about this Lily,:eek:) BUT you shouldn't do it this way, you will end up with an IPA as your surplus is over £99.

You should both put the whole of the household bills on your SoA, then bills that are individual to each of you on your own SoA's, you then put down the other persons half, less their own bills where is says does anyone else make a contribution. This will give you both an equal share of the surplus, and no IPA for either of you.

LilyBart

Jenny, if Waspy and Phil (edit - and Peachy) think 50/50 will be ok for the purpose of the petition, please save yourself a huge headache and take their advice. They have a lot more experience of this than I do. The sole advantage of a proportional split is if it saves one half of a couple from ending up with a vastly bigger surplus than the other, and if one person has very different travel expenses etc. Apologies for heaping more confusion on an already confusing process!
Lily

Peachy, I think it's £95, but I'm bowing out of this one!