IPA advice

samzak

Hi, I am currently in the process of looking for a job and also about to declare bankruptcy. However because i live at home and my wages have always gone mainly on my debts, i don`t really have a lot of outgoings apart from board, mobile etc. If i`m picking 900-1000 up a month then i reckon i will be paying out 60 or 70% in an IPA? Wouldn`t i be better just looking for a part time job that will pay me around £500? As long as i have a couple of hundred pounds a month to live off after the IPA i`ll be satisfied but i don`t wanna work a 48hr week if the money is to be swallowed up by an IPA anyway.

dalip

Just because you live at home it does not mean that you can not have allowances.You are taking big gamble on the fact that you will get a job easily. Would it not be nice to be able to pay your parents a nice bit of H/K instead of worrying about an IPA.On average if you were taking home £1,000 a month your allowances would be about £600 without any travel or car costs(those could be added) so on those figures you would be looking at paying an IPA of about £150 for 36 mths. Variable with income changes. Not so bad is it?.D

samzak

I`m not completely clear on what the OR will see as `expenses` for me. Would it be say housekeeping £200
food £100
mobile £30
Travel costs £40
Hope i`m making sense cos i`ve spent so long just paying debts every month and not much else and living off credit that i`m not entirely sure what i would include in my SoA? If you reckon i could be looking at paying around £150 for my IPA then that would be great, for some reason i`m thinking i`m going to be paying out a lot more and working for nothing! Thanks for your advice.

dalip

samzak wrote: »

I`m not completely clear on what the OR will see as `expenses` for me. Would it be say housekeeping £200Rent to parents £300 maybe £350
food £100£170
mobile £30£20
Travel costs £40is this when not working as surely this would increase if you were working;)
Hope i`m making sense cos i`ve spent so long just paying debts every month and not much else and living off credit that i`m not entirely sure what i would include in my SoA? If you reckon i could be looking at paying around £150 for my IPA then that would be great, for some reason i`m thinking i`m going to be paying out a lot more and working for nothing! Thanks for your advice.

You can also add to the above
Haircuts £10
Health(dental,optic,perscriptions) £30
Cloths £40
Hol all £20
If you have pets you are sometimes allowed £20

All this is not set in stone. Some OR's allow more some less. If you run a car then there would be more allowances than just £40 for travel.Hope this lets you see it from a different persepective. Also an IPA can be altered to suit your income. For example if your hours are cut then your IPA can be lowered nd visa versa.D

samzak

Thanks dalip, thats a big help. Going to download an SoA and do it properly. One more thing though - how do i prove that i`m paying my parents rent, cos surely the OR needs proof of this? Sorry to be a pain.

dalip

Yes they would.Either a cash transfer or a written letter from you parents might be enough but not certain on that score. As i have just said to another poster. My daughter and her boyfriend paid me h/k and i paid it into the bank every wk. The OR never contaced them,but it was there on my bank statements. Maybe someon who has already done ths might be able to help.D

oliviarosejackson

Hi samzak,

we are in similar situations, i still live at home with my parents and I worry what the OR will allow me, as I have no 'proper bills' and I just give my parents the money. But I spoke to a lovely lady from national debtline today and she was really helpful and gave me lots of information. She said as long as the money is accountable for, they do not mind how you pay it to your parents.

I am still undecided if BR is the right way to go, but if I do, me and my mum have gone through all of her main bills, mortgage, gas, electricity, council tax and have split it 3 ways. So we are all paying an equal amount (mum, dad and me). Maybe would be worth you doing this, then it would all be accountable for...

samzak

Thats a good idea. I`m just worried they will take a huge chunk off me but after completing an SoA i`ve realised i will actually have more outgoings than i realised and dalip is very accurate with what my expenditure may me. Living off credit for so long and having debts swallow up my wages i`ve realised i`ve never really sat down and thought about what my living costs are. In a way i`m glad its come to this cos i`ve been careless with money and am looking forward to starting again and learning to live within my means. Hope it all works out for you too.