What's The Best Way To Work Out Outgoings?

Steve_C_4

Both me and my wife (having taken advice from the CAB) are preparing for Bankruptcy.

Can you tell me what is the best way of filling out Section 7 the “Outgoing Section” on the forms.

I earn a bit more than my wife it’s about 35% more.

What is the best way of working out the “other contributions” on the forms – Section 6 – 6.7

As always thanks so much for your help.

debtinfo

Since both are going bankrupt it doesent matter how you work it out as the OR will have both sets so it is just easier to put down both full incomes on both forms, one under income and one under partners contribution

Steve_C_4

Hi Debt Info,

Thanks so much for your reply.

Regarding IPA’s...

I am hoping that neither you nor anyone else takes this the “wrong” way.

Because to be honest whatever the Official Receiver asks for - both me and my wife will agree.

It’s just that we would like an idea of what it is likely to be - so we can start budgeting for it and make any cutbacks that may be necessary.

On our Outgoings my surplus income is around £46.00 and my wife’s contribution to the living costs is around 35% (I know she has personal costs but for the sake of it lets say it's 35%)

On my wife’s Outgoings her surplus income is around £29.00 so my contribution to the living costs is around 65% (and yes I have personal costs as well but again for the sake of it lets say it's 65%)

From what I’ve been told by the CAB – and also read on the forum the “others contribution” is not classed as income.

So how can we work out what our likely IPA will be?

Or do we just wait and see what the OR determines.

I am sorry for asking, again we are not trying to avoid an IPA we just want to "plan" for it.

debtinfo

as i say since you are both going bankrupt it doesent matter how you split it, the total IPA between you will be the total of both your income less the total of both your expenses.

Steve_C_4

I am so sorry to be dense - my wife and I have been working on this all afternoon. And we just got ourselves more and more confused.

When you say "expenses" do you mean our own or the "contributions" we make to each others living costs?

If it's just our own "expenses" - the "other contributions" doesn't really matter that much does it?

debtinfo

You are overthinking it, there is no need to split up each others contribution. so lets start at the beginning, forget everything you have seen others post and your preconcieved ideas of how to do the SOA's

done that

right now write down your income

done that

right now write down her income

done that

now right down all of your combined expenses

now what you have left will be the combined IPA

Steve_C_4

Thanks so much Debtinfo.

You've made it a lot easier!

Just another dense thought - our "combined" expenses do you mean our individual expenses.

Or our individual expenses and the "others contribution"?

(I have this awful feeling I'm over complicating everything again.

Anyway...

Obviously if we both have a surplus we will get individual IPA's?

But we'll know the total and be able to plan for it.

debtinfo

the combined expenses are just the total of all the costs for you both to live, food rent petrol etc

Steve_C_4

Thanks again Debtinfo.

I tried, I really did try to explain all this to my wife.

But I think I made a hash of it or maybe she didn’t fully understand.

She asked if I could give you a simple example and you can tell us if we are on the right or wrong track.


My Income – 600pm

Total Expenses – 450pm

Her Contribution – 50pm

My Surplus is still - £50pm

So my IPA would be - £50pm


Her Income – 475pm

Total Expenses – 450pm

My Contribution –400pm

Her Surplus is still - £25pm

So Her IPA would be - £25pm


Somehow it doesn’t look right does it?

If it is wrong and if you could -

We would both so be eternally grateful if you could type the correct answers for both me and her using the example.

Not combined because we’ll both have to fill in separate bankruptcy papers.

We both fully understand if you don't have the time or the patience - somehow neither of us "get it" and we can let the Official Receiver work it out.

And we do realise other people need your help.

debtinfo

you need to stop thinking about the forms as an IPA calculator, they are simply asking for the facts, based on what you have put above your SOA would look like this

Your income - 600
Her contribution/income - 475
total household expenses - 900

her soa wouldlook like this

Her income - 475
Your contribution/income - 600
total household expenses - 900

as you can see the total surplus between you is 175, anyway you split it that is the total that would be paid over

debtinfo

also whatever you put down the OR is going to be working it out themselves anyway