Execeptable expediture

Holes_in_my_pocket

Good Morning
What is execptable expediture on the following please;
1 Dentist Opiticians and Perscriptions
2 Holiday Me girlfriend and 2 children and elderly father or would i be better saying just me and 2 children.
3 Clothing with letter from GP saying i need to change shoes more then normal.


thanks and have a wonderful day

fermi

There aren't any absolute cast iron figures.

Normally best to put what you actually spend if you can work it out.

This is an involved read, but it will give you a good idea as to how the OR looks at it.

Link: OR's Technical Manual - IPAs Assessment of real disposable income

Holidays and prescriptions do get a mention in that.

fiveyearplan

Amounts are different as to what each OR will accept. A holiday, if allowed, is for something in this country. You could try £40. Dentist, Opticians and prescriptions you could put £20 but don't you have an NHS exemption certificate? As for the shoes, not sure what you could put.

I would definitely put something for rent and bills though as I remember you didn't have anything down for that.

Holes_in_my_pocket

Thanks Five with regrads to rent i have put down £200 for board to cover rent and utilities

Holes_in_my_pocket

Fermi

Thanks for the links ben looking for that for ages

Thanks Paul

startagain_2

I was lucky in that I got £35 for prescriptions, optician and dentist.
£10 for presents, £10 for haircuts, £20 for holiday.
I personally think that these are fairly small amounts that led my interviewer to realise that I wasn't trying it on at all.
My advice to anyone trying to compile a SOA, with as much allowed as possible, is to listen to the advice on here and not put in large amounts for expenses if history and experience says that they will not be passed. I also think that it could cause them to look a bit more closely at the other expenses being claimed.
IMHO
SA

Lensman_2

Further to SA's post and quoted from Fermi's link:

If a bankrupt's expenditure appears to equate exactly with his/her evidenced income, leaving nothing to pay into the estate, the figures should be closely examined and a full explanation sought, especially where expenditure appears to vary considerably from the averages recorded for the relevant family group in the Household Expenditure Spreadsheet. Questions concerning previous debt repayments should also be considered, particularly as most bankrupts make payments of some sort to their creditors prior to the making of the bankruptcy order. Whilst the creditor debts which the bankrupt has been attempting to service prior to bankruptcy from his/her income (and that of his/her partner as appropriate) may now be included as unsecured creditors within the bankruptcy proceedings, information concerning these pre- bankruptcy debt repayments may help to provide a context in which to consider whether amounts claimed by the bankrupt as necessary expenditure post bankruptcy are reasonable.

To summarise, they will look very closely at your SOA. I totally agree with SA on being honest.

The link for the spreadsheet is live, you can get guideline amounts from that.

bluebird36

Hi there,

I find the amount allowed on groceries for 2 children and 1 adult (£287) not enough. Will they take into consideration that my children are not toddlers but 10 and 14?
Surely they must see that prices have risen sharply since 2006/2007?:eek:

debt_doctor

Hi all,

On the basis of what is mentioned below I always put holidays down at £ 20 per person per month for all persons actually living with you;

31.7.26 Holidays
Previous guidance stated that an allowance for holidays should not be included in the calculation of funds available for an income payments contribution, other than in exceptional circumstances, for example where a dependant was sick or disabled. Whilst extravagance is not endorsed in this respect, it may be considered a reasonable domestic need to allow the bankrupt and his/her family to benefit from a non-extravagant holiday as a break from routine. Expensive or luxury holidays (particularly if the holiday is abroad) are likely to cause offence to creditors but an allowance of between £60-£80 per month (amounting to £720-£960 per annum) for a household of 4 people should allow the bankrupt and his/her family sufficient funds to take a moderate annual holiday. Should the bankrupt consider this allowance insufficient to fund a holiday, he/she should be informed that any additional holiday cost that he/she may wish to incur must be funded from the amount of surplus income left with him/her after deduction of the assessed IPA/IPO contribution.

DD

fermi

Lensman wrote: »

The link for the spreadsheet is live, you can get guideline amounts from that.

But:

a) Hopelessly out of date now.

b) Very bad idea to follow too closely. People have got in big problems in the past by using those figures. Follow too closely and it can ring major alarm bells with an examiner. They will then pull your budget apart and demand proof for everything. That is the major reason that it is unwise to depend too much on it.

nervousmother

debt_doctor wrote: »

Hi all,

On the basis of what is mentioned below I always put holidays down at £ 20 per person per month for all persons actually living with you;

31.7.26 Holidays
Previous guidance stated that an allowance for holidays should not be included in the calculation of funds available for an income payments contribution, other than in exceptional circumstances, for example where a dependant was sick or disabled. Whilst extravagance is not endorsed in this respect, it may be considered a reasonable domestic need to allow the bankrupt and his/her family to benefit from a non-extravagant holiday as a break from routine. Expensive or luxury holidays (particularly if the holiday is abroad) are likely to cause offence to creditors but an allowance of between £60-£80 per month (amounting to £720-£960 per annum) for a household of 4 people should allow the bankrupt and his/her family sufficient funds to take a moderate annual holiday. Should the bankrupt consider this allowance insufficient to fund a holiday, he/she should be informed that any additional holiday cost that he/she may wish to incur must be funded from the amount of surplus income left with him/her after deduction of the assessed IPA/IPO contribution.

DD

Thanks for that debt doctor, I have read this before but I am confused. does the above mean that unless your disabled you should not be allowed holiday?
The reason I ask is my Trustee although has not set the ipa yet scribbled out the holiday part on our SOA. Meaning he was not to allow a holiday..
My OH is disabled, but he does work bringing in more income than me, but do you think we could fight to have a holiday included in our SOA?