guidelines for household expenses

all_hours

When the OR decides whether there is a surplus for IPO do they use a guide for household expenses - does anyone have a link to this?

plumduff-2

I have some info on trigger figures which are used by the credit industry and (some) debt advisers... Who lives with you... are you single, couple, single parent or couple with how many kids...?

all_hours

hi,

1 adult and 1 child.

Renting a property and no car.

what outgoings are allowed - I read that internet connection couldn't be included

thanks.

shameless-about-money

The OR uses YOUR own expenses!! It is not made up as you go along!

YOUR rent
YOUR utility bills
YOUR council tax
YOUR outgoings for food

Then they add £40 per month for shoes and clothing

They add an amount for Christmas and Birthdays.

If you increase the figures too much the OR will simply alter them back down.

They do not allow Sky, Cable , Gym membership or pet insurances or other "luxuries" in the calculation. Phone/Mobiles have to be "reasonable".

This can all be found on the https://www.insolvency.gov.uk website.

When all your expenses have been taken into account, any surplus over £100 per month will attract an IPA - a surplus of £100 per month will give an IPA of £50 per month for 36 months. £200 surplus would be £100 per month. As you go up the ladder the 50% figure increases to 60%.

plumduff-2

Thats all well and good, but most people in debt are so used to spending so little, scrimping and saving that the figure they have been using is to all intents and purposes very little....

So based on BBA?MAT figures for a single parent... and this is only for some expenditure items.... others are based on what shameless has written - as they cant be changed (gas, elec, water, TV licence, rent, CT etc etc..)

Telephone £27
mobile phone £20
Total travel costs £188
Housekeeping £364
Children £68
health £10
pets £10

As you can see, some of these are stingy themselves, so only use them as a guide.. further - most ORs are mpre generous than these figures allow... and if you did put too high a figure the OR will only knock it down anyway...

But the food one - well, most people we see, dont spend as much as they are 'allowed'...

shameless-about-money

plumduff-2 wrote:

Thats all well and good, but most people in debt are so used to spending so little, scrimping and saving that the figure they have been using is to all intents and purposes very little....

So based on BBA?MAT figures for a single parent... and this is only for some expenditure items.... others are based on what shameless has written - as they cant be changed (gas, elec, water, TV licence, rent, CT etc etc..)

Telephone £27
mobile phone £20
Total travel costs £188
Housekeeping £364
Children £68
health £10
pets £10

As you can see, some of these are stingy themselves, so only use them as a guide.. further - most ORs are mpre generous than these figures allow... and if you did put too high a figure the OR will only knock it down anyway...

But the food one - well, most people we see, dont spend as much as they are 'allowed'...

£364 for "housekeeping" is not a lot.

If you allow £250 for food - since this goes up and down anyway + ACTUAL utility bills and rent, for which the proof is there, the OR cannot argue with that.

Anyway, children eat a lot of food - you could increase that to £300 on its own quite easily.

I live on my own and I only buy fresh food and it costs me more than £60 per week in food and household cleaners, washing powder, etc.

all_hours

plumduff-2 wrote:

Telephone £27
mobile phone £20
Total travel costs £188
Housekeeping £364
Children £68
health £10
pets £10

Is that just for one child? It's higher than I expected. travel costs would at most be half of those.

If there is no surplus income at the point of bankruptcy would they not make an IPO or place a £0 IPO in place for 3 years and increase it if your income changes?

scootw1

all_hours wrote:

Is that just for one child? It's higher than I expected. travel costs would at most be half of those.

If there is no surplus income at the point of bankruptcy would they not make an IPO or place a £0 IPO in place for 3 years and increase it if your income changes?

I'm putting down £220 for housekeeping as a single person and £90 for travel.

I know these figures can be higher but i'd have thought the OR would ask for justification if they were too high

plumduff-2

The figure is on the assumption of one child...

The housekeeping figure (for DMP purposes) is for food and clothing - we use it as a guideline for food only for BR purposes... So if more than one child, we would increase it again...

If you have no surplus income (according to the OR) when you file, then you would be discharged within one year... and you no longer have any dealings with the OR - so the day after discharge - you could safely win the lottery...

However, if your income improves during the one year period, you would have to tell the OR and an IPA could be made... this owuld then run for three years even though you are discharged after one - unless a BRO is in place - but thats another story...

hitch_2

Holidays, Dentists, do you have a pet, claim as much as you can. Spend the rest of tonight looking at this site
http://www.debtquestions.co.uk/debt_forum/viewforum.php?f=14

Also Mike St Helens posted re this a while ago

shameless-about-money

hitch wrote:

Holidays, Dentists, do you have a pet, claim as much as you can. Spend the rest of tonight looking at this site
http://www.debtquestions.co.uk/debt_forum/viewforum.php?f=14

Also Mike St Helens posted re this a while ago

We have had issues with pets here just recently. If you include a pet and list it separately, the OR will remove it! It is better to include costs for pets in the housekeeping section.