Some questions about an IPA

parabol

Been bankrupt for 6 months and I'm looking to get back in to work. So I was just wondering a few things about what I'm going to have to pay out.

Does the IPA last for 3 years from the date it's arranged, or 3 years from when I was declared bankrupt?

Is the statement of affairs in my bankruptcy paperwork taken in to account? At that time, I was living off jobseekers allowance and didn't have to pay for my accommodation. If I start working, I'll be expected to pay for this, so I don't want the OR to think I'm making this up just so I get to keep more money, if that makes sense.

I understand that the more disposable income I have, the higher the percentage they'll take. Is there a set guideline for this, or is it at the discretion of the OR? It seems as though I'd be better off working part time instead of getting a really hard and demanding highly paid job just to get most of my wage taken away.

and finally, if my circumstances change and I want to move in to a rented flat or something, my outgoings will likely increase quite a bit. Would the OR take issue with me being able to pay a lot less? It's not like they can expect me to stay living with my parents for the whole duration of the IPA.

Thanks

parabol

I found this, so this answers one of my questions

£100 to £249 - 50%
£250 to £349 - 60%
£350 to £499 - 66%
£500 to £600 - 70%

fermi

You would have to fill out a new income/outgoings questionnaire.

If your changed circumstances mean that you would have to pay rent, then that should certainly be allowed.

The OR can't tell you to stay with your parents, so if you move out and rent somewhere reasonable that should be allowed along with the expenses that entails.

parabol

Just as an example, if I was to submit something like this, would this be allowed? How much of it would I have to provide evidence for? I need to move out of this house, but the OR obviously isn't going to allow me to save up to enable me to do so, so I need to make sure I have a bit extra to save for a deposit, etc

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 1 (2 other cars in household owned by others)
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 30
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Educational fees........................ 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 900

peachyprice

Is this how your SoA would be after you moved out? You have nothing for utilities and you need to put down benefits, so child benefit a child tax credits. Will the 2 other adults be moving with you, and do you have a partner?

parabol

This would be an SOA for now. There aren't any utilites because the 'rent' would be paid to my mum for an overall contribution to everything I use. The adults are me, my mum and sister. The child is my brother.

If I moved out, the statement would be completely different and I'd be living with my girlfriend.

dottydora

parabol wrote: »

Just as an example, if I was to submit something like this, would this be allowed? How much of it would I have to provide evidence for? I need to move out of this house, but the OR obviously isn't going to allow me to save up to enable me to do so, so I need to make sure I have a bit extra to save for a deposit, etc

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 1 (2 other cars in household owned by others)
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30 you could put this with land line and say mobile (some OR's allow) and contribution to land line. Not sure if it will be allowed but worth a try.
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 30
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5 maybe up a bit. An NHS dentist is £16 per appt. and prescriptions are about £7 ish these days. Then there are eye tests of about £25 a time, even if you don't wear glasses you should get your eyes tested periodlically. This all adds up over the course of a year.
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 Not allowed - Has to come from surplus income
Haircuts................................ 20 Probably only be allowed £10
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Educational fees........................ 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 900

I'm not an expert, but based on my experience and what I've read on here, just some of my thoughts. I am sure someone will be along later with more advice. J. x

debtinfo

I think nearly all that will be acceptable, they would probably ask a few questions about your petrol, just how faw you drie etc to make sure it was right.

To answer one of your initial questions an IPA would last 3 years from when the IPA agreement was signed by the OR

parabol

Thanks for the help. I was just a bit worried that the OR might think I was taking the p*ss. Out of curiosity, if I didn't start working again until after I was discharged, could the OR still implement an IPA? Just wondering if there's only a certain time frame within which it can be arranged.

tech2_2

STOP

Think very hard about what you are doing...........

Do the other adults earn? as some of this will need to be taken into account

Ie if one is a older child who works they will be expected to make a contribution/their share of the living expenses//ITS NOT AS EASY AS YOU THINK..........

If you are to work and inform the OR you need to put up on here

who the other adults are
do they work
how much they earn
how much you will earn
how much tax credit, income support and child benift the household gets
how much the 3 cars are worth and if you have use of them
how old is the child

and thats just to start with as well as filling in an SOA and getting it up on here

Ur half way there now with no IPA cant you wait 6 more moths max. as if u get and IPA this will be 3 years from the date it is issued so your BR couldl last a total of 3-4 yrs.....WHY go through all the hassel is it worth it???

Only trying to be helpful at the end of the day it is uo to you mate!

Tech2

parabol

wow, I didn't realise that. So if I just hold out until I'm discharged, I'll never have to have an IPA? But if I start working now, I'm gonna be having to pay out for the next few years?

To answer the questions, the other adults are my mum and sister. My mum works part time, my sister works full time. My step dad works abroad and has a very high wage. This doesn't affect me at all because I don't expect anything from them. I moved in temporarily just until I got myself sorted. I didn't think it would be that complicated, I don't have use of any other cars except mine and the OR wasn't interested in that.

Thanks for advice, I didn't realise I wouldn't have to have an IPA if I waited until I was discharged. Is this definitely true?

Thanks.