What's the point !!!

kwackerman

Hi All,

Having read quite a lot of posts on this board I have a question regarding the surplus after the OR have decided on how much they will take as payment to your IPA.

If we go BR, in our situation with a net income of approx £3300 per month after paying rent of £700 plus say £600 for bills and then if our living allowance is similar to what we are allowed in our DMP (£1100) then we will have a surplus of around £900 per month.

Looking at the figures quoted on here the OR will take 70% of this amount (£630).

My question is I don't understand why I cannot save this money (£270) per month which believe me is a fantastic amount of spare money considering we have no spare money at the moment while in our DMP, and in 12-18 months use the money to buy a replacement and more reliable car. From what I understand on here the OR will consider this car a new asset and want to seize it? This does not make sense to me as they might of well just taken the whole 100% in the first place. Would they rather I just throw the money away on beer and pizza?

I want to make a fresh start after BR but lets be honest on here and remember many of us have been very irresponsible with the management of our finances and cannot be trusted to ever have credit cards and the like ever again. That is why I like many others took out big secured loans yet when the going got a bit tough again used the credit cards up to the hilt again maintaining a lifestyle that we could not really afford.
I never want to see a credit card again besides my wife would never forgive me if I did try and get anything more than one of those prepaid cards anyway!
I guess what I'm saying is I have never had any savings and I like spending money which is part of the reason I am in the awful position I'm in, so it bothers me that I would be able to have £'s in savings yet not be able to put this money to use wisely by upgrading my car. You need to bear in mind that I commute 60 miles per day, 5 or 6 days per week ( night shift) and the wife commutes 15 miles per day as well. Our car has 75k on and this will increase by 20k a year, and it has to be very reliable. I assume I will be free to use this money on keeping it on the road if I can't replace it?

MikeJO

kwackerman wrote: »

....I don't understand why I cannot save this money (£270) per month which believe me is a fantastic amount of spare money considering we have no spare money at the moment while in our DMP, and in 12-18 months use the money to buy a replacement and more reliable car. From what I understand on here the OR will consider this car a new asset and want to seize it?

If it's more than a year you'll be discharged and free to spend your money on whatever you like surely?

Also I think I'm right in saying that living allowances are a bit more generous in BR than for a DMP. Someone will hopefully confirm that (or not).

ontheroad_2

Allowances are more generous in BR than in a DMP, as once you're BR you have no access to credit at all.

Post up your SOA, you'll get help and advice here about what is reasonable, then you'll have a much better idea of what your surplus income will be.

I don't know what happens if you buy a newer car a year after you're declared BR, hopefully the experts will be along shortly to advise you.

kepar

I totally agree with what you are saying.
My wife has an IPA and has a spare amount of about £200 a month. As far as we are concerned and from the information of the OR that money is hers to do as she likes. We lost our car as it was on hp and bought a cheap run around. We are in the process of saving for a newer one. We are out of bankruptcy and from what we have read, and from what we understand that we only have to report an increase in income not an increase in assets.
Assets such as cars are taken to appease creditors during br, but that spare money is her money and she be able to use how she wants.

debtinfo

ye as the others ay the rules about after aquired assets, which is what you are talking about only last until you are discharged