Help on SOA please

stevedon_2

Wife and myself both bankrupt. Our surplus is child benefit. Does this indicate no chance of an IPA ? Any advice / help needed and appreciated.

many thanks

Monthly income after tax................ 1984
Partners monthly income after tax....... 1818
Benefits................................ 238
Other income............................ 0
Total monthly income.................... 4040
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 1195
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 30
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 150
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 19
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 800
Other child related expenses............ 125
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 29
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 50
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Kids Activities (£5 per child pw x4).... 80
Child Maintenance (2 children).......... 193
Total monthly expenses.................. 3813


Monthly Budget Summary[/b]
Total monthly income.................... 4,040
Expenses (including secured debts)...... 3,813
Available for debt repayments........... 227
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 227

DON79

stevedon wrote: »

Wife and myself both bankrupt. Our surplus is child benefit. Does this indicate no chance of an IPA ? Any advice / help needed and appreciated. child benefit is not included for the purpose of calculating an soa so you should be fine.

many thanks

Monthly income after tax................ 1984
Partners monthly income after tax....... 1818
Benefits................................ 238
Other income............................ 0
Total monthly income.................... 4040
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 1195
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 30
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 600 should be ok for family of five or more.
Clothing................................ 150 ditto the above.
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 19
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 800
Other child related expenses............ 125 - you might need to cut this back or explain to the OR what it is for.
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 29
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 50 - £10 per adult and £5 per child
Entertainment........................... 0
Holiday................................. 0 - you can allow for this - £80 was recommended to me for a family of four.
Emergency fund.......................... 0
Kids Activities (£5 per child pw x4).... 80 - this should be fine
Child Maintenance (2 children).......... 193
Total monthly expenses.................. 3813


Monthly Budget Summary[/b]
Total monthly income.................... 4,040
Expenses (including secured debts)...... 3,813
Available for debt repayments........... 227
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 227

hope this helps a little, just be prepared that the OR might query the additional child expenses and/or cut it back or disallow it depending what it is for.

stevedon_2

Thanks Don79,

The additional child expenses for £125 are actually school dinners.

Thanks for your input.

DON79

that should be fine then, as long as the OR knows what it is for. hope it all goes well for you.

coolcait

stevedon wrote: »

Wife and myself both bankrupt. Our surplus is child benefit. Does this indicate no chance of an IPA ? Any advice / help needed and appreciated.

many thanks

Monthly income after tax................ 1984
Partners monthly income after tax....... 1818
Benefits................................ 238
Other income............................ 0
Total monthly income.................... 4040
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 1195
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 30
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 150
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 19
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 800
Other child related expenses............ 125
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 29
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 50
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Kids Activities (£5 per child pw x4).... 80
Child Maintenance (2 children).......... 193
Total monthly expenses.................. 3813


Monthly Budget Summary[/b]
Total monthly income.................... 4,040
Expenses (including secured debts)...... 3,813
Available for debt repayments........... 227
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 227

Hiya

I'm not entirely sure that it will work like that. Although your surplus is pretty much equivalent to the amount you get in benefits, I suspect that it will be seen as a surplus from your and your partner's monthly income after tax.

The calculation is more likely to work like this:

Total Monthly Expenses: 3,813
Less Benefits: 238
3,575

Joint income (excluding benefits): 3,802
Less remaining monthly expenses: 3,575
Surplus: 227

Sorry!

stevedon_2

Not sure how that's worked out coolcait.

The surplus is less than the child benefit money received. I thought they weren't allowed to include this.

Anyone else agree / disagree with coolcait ?

DON79

I have never seen it worked out like that personally and never had that mentioned to me before but maybe someone else will know if that's how they do consider it.

deedee_3

Cait the Child Benefit is not taken into account when working out an IPA though it has to be shown on the Soa.

coolcait

Ah well - yet another difference between Scotland and England!

In Scotland it would be worked out along the lines I showed - and that's one of the reasons why it can occasionally be possible to make yourself bankrupt under the Low Income Low Asset rules, but still end up paying an IPA.