IPA and child tax credits

CanItGetWorse

Sorry to ask this but I can't seem to get an answer that is written in idiot's language on the insolvency website!

Basically my husband and I are both bankrupt. The bankruptcy is due to end in July this year (if we serve the whole year)

We have a small child already who we recieve child benefit and child tax credits for. i am also pregnant and due in March. I am a full time mum and my husband works full time. At the moment we do not have an IPA in place as our incomings match our outgoings.

What I'd like to ask is, when our second baby is born, our tax credits (going by the two calculators online) are due to increase by a fair bit. Will this be taken into account for an IPA?

Obviously there will be increased costs with having the baby (nappies etc) but to be honest it looks like we will have some tax credit money left over every month.

To give some sums -
- My husband earns £1200 per month
- We (I, officially) get £80 per month in CB (which will increase to £146 when the baby is born)
- We get £210 per month in CTC (which will increase to approx £440 when the baby is born)

Am I also right in thinking they do not take into account CB? Because I am fairly sure I had to write this in my form when I went bankrupt.

I'd be really grateful of some advice so I can budget!

CanItGetWorse

Sorry I should that that is my husband's net pay, what we actually get in our bank!

sundays

i DONT think they take the CB as income ie its disregarded, where as they do with a IVA. sure someone else with come a long and answer, id def increase the budget when the newborn comes along.

fermi

I think it is now included in calculating overall income for the purposes of an IPA?

debt_doctor

Child benefit does count as income for IPA purposes.

DD

debtinfo

Obviously you have to work it all out, but £1786 for 2 adults and 2 children, one of whom is a newborn, i think that might all be accounted for in reasonable expenditure, put a SOA up with estimated expenditure

kepar

debtinfo wrote: »

Obviously you have to work it all out, but £1786 for 2 adults and 2 children, one of whom is a newborn, i think that might all be accounted for in reasonable expenditure, put a SOA up with estimated expenditure

I agree, but there is an extra £300, so will be hard to claim that a newborn
will cost that much a month? Worth a try though.

Ineedaname

I read it that the OP is actually asking if tax credits are taken into account, rather than CB...

I'm assuming they are, but can someone advise on that please?

sundays

sorry i misread - question was is CB taken in to a IPA
i answered about IVA not IPA and CB- need to put ,my glassed on

CanItGetWorse

Hi, thank you all for your replies. Sorry I wasn't clear, I did ask two questions in my original post! I will assume they will take into account the additional child benefit. I'm thinking the information I found saying they didn't may be duff as I'm sure I had to declare it in my original bankruptcy.

As for the tax credits, all I have at the moment is an estimate. It seems rather generous to me and I'm unsure about getting my hopes up that that is actually what we will recieve (even though I've been completely honest in the calculators) As someone said, a certain amount extra can be taken up with baby expenses, but I'm pretty sure even if I ended up formula feeding it wouldn't cost hundreds extra! If people don't mind I may post a statement of affairs a bit later on so people could tell me what is reasonable?

fermi

Not "duff" I think. Just out of date. CB did used to be disregarded until a while ago.