Is it possible to be turned down?

hisandhers1978

Hi,

So the stage were at is we have filled all forms out and will be ringing the court today for an appointment to file for BR.

After filling out our budget (SOA) we will be left with a surplus or around £600 per month which seems quite a lot. I understand the OR will want to take some of this monthly, thats not a problem.

My question is is there a chance the court would see this as too much left over and reject BR? We have tried a DMP and paid £700 pm into it for almost 2 years and hardly seen a reduction in the balancies which is sickening! An IVA would be ruled out as big % of credit is Northern Rock.

Our total unsecured debt is £106,000 and even if we paid £600 into a DMP it would still take 15 years to clear and thats if they all froze any interest which is impossible!

Any help would be appreciated.

Thanks.

ontheroad_2

no you won't be turned down for having that amount of excess - if that £600 doesn't cover the minimum payments on your outstanding credit, then you are insolvent. You could be turned down if you haven't taken suitable advice though, from the debt charities etc.
Have you posted up your SOA here? You may have missed something on it, which folk here would see?

fermi

You are only going to be turned down if the judge thinks:

a) You are not insolvent.
b) Another debt solution is more appropriate.
c) You have not taken proper independent advice

for you

a) You have £106,000 of unsecured debt and presumably no assets that would come close to that? So you are clearly insolvent under any definition.

b) You say an IVA is not possible, so that is not a concern.

c) Presumably you have taken free independent advice that BR is the best option, so again shouldn't be a concern.

hisandhers1978

Thanks for the quick responses.

Yes we have been advised by the CCCS that BR is our best option, i was just a bit shocked when doing our final SOA that there was so much surplus!

So if we have £600(ish) surplus what % is likely to be taken and for how long?

I will post SOA soon then to see if i have missed anything etc.

Thanks again

fermi

£600 surplus per month would put you in the 70% IPA band, so they would take £420 per month for 3 years.

The full set of bands are these:



Obviously if your surplus is different or changes over the 3 years, then your payment amount would change accordingly and you might be in a lower % band.

If you post your SOA up, we can see if the £600 surplus you have worked out is reasonable. You may not have included expenses for things that you should have,

hisandhers1978

Thanks fermi.

I will post soa shortly then.

So if we pay £420 into the ipa for 3 years do we still get discharged after 12 months? for example if our income increases in 2 years time we will still have to pay more into it?

I thought after 12 you we automatically discharged and free to do as u please financially? otherwise that mean our BR will last 3 years?

fermi

hisandhers1978 wrote: »

So if we pay £420 into the ipa for 3 years do we still get discharged after 12 months? for example if our income increases in 2 years time we will still have to pay more into it?

I thought after 12 you we automatically discharged and free to do as u please financially? otherwise that mean our BR will last 3 years?

If you have an IPA, you will still be discharged after 12 months.

However, an IPA is an agreement so pay the OR/trustee that still applies/continues once you have been discharged.

The IPA agreement will say in it what your obligations are under it. Normally that will be to inform the OR/trustee of any increase in income over the 3 year term of the IPA, and that the IPA amount will be adjusted accordingly. Conversly, if your disposable income goes down, then you can ask for any IPA to be reduced.