Bankruptcy looming on Wednesday please help...

nert

Hi. Well as the title says, I will be going Bankrupt on Wednesday. In a nutshell, this is due to being left with a loan from an ex and negative equity in a property currently being repossessed. I now rent a 2 bed flat through a housing association with my partner and our baby. My partner is not going Bankrupt. He pays the rent and I pay the bills. We run out of money every month. I have a couple of questions in relation to my income and expenditure sheet if anyone could help me...

We currently have a sky package (in my name), it is £22 basic channels, £12 line rental, £5 calls, free broadband for another 3 months then £7.50 a month. Do you think this will be acceptable? Also, do I have to list it because it goes out of my account or could I not put it down and pay for it out of my household expenditure? We can't really afford to go out so even though its not really essential, we'd be lost without it!

I would really appreciate it if you could give me some feedback on my i&e and tell me if theres anything you think wouldn't be acceptable. I am absolutely terrified of having a IPA as we can barely get through the month now, do you think looking at the figures below this would be likely?

Heres the breakdown...
2 adults 1 child

Incomings

My income- approx £821 a month (weekly figure x 4.3)
My partners- £1050 net. It was quite hard to quantify his contribution but basically he pays the rent which is £506, pays the other half towards shopping so +£200 and then normally buys the babies bits and other bits and pieces towards the end of the month so have put down £800- do you think this will be acceptable?
Benefits- £81.20 child benefit and £139 child tax credit (childcare)
= Total of £1041 (plus partners contribution)

My Outgoings

HOUSEKEEPING- £200 (is £400 acceptable for adults 1 child a month?)
GAS/ELECTRIC- £80
WATER- £70 I know this seems high- I was paying £39 in my old flat but when I left and gave them a reading, I have ended up owing £225 (going into the bankruptcy) and they said I should have been paying £70 a month. Also we moved into our new flat in December and haven't paid anything for the water yet so I know we will have to be paying at least this a month from now on.
TELEPHONE- £48 (line rental and mobile contract)
PETROL- £150 (includes work parking)
CLOTHING- £50
COUNCIL TAX- £112 (estimate as property still hasn't been banded)
LIFE INSURANCE (payable on death only) £6
CONTENTS INSURANCE- £8
SKY/BROADBAND- £31.50 (I keep reading different things as to whether or not the basic sky package is allowable?)
CONTACT LENSES/EYE CHECKS ETC- £20
CAR INSURANCE- £40 (up for renewal so this is an estimate)
DENTIST- £8
CAR SERVICE PLAN/TAX/REPAIRS ETC- £30
TV LICENCE- £12
KITCHEN APPLIANCE COVER (washing machine/fridge freezer/oven)- £15.50
CHILDCARE (while we are both at work)- £152.86
PRESCRIPTION- £9
EMERGENCY ALLOWANCE- £15

TOTAL= £1056.82

I have also written my partner pays the extra if I run out, as you can see my outgoings and incomings are pretty much equal. Do you think there is any chance I will get hit with an IPA? Am so worried we'll be left with even less money :eek:
Any suggestions gratefully received thank you!

debt_doctor

Hi,

Well providing you can prove a need for the car and not just a want then all seems ok to me. Infact partners contribution could be excessive.
£400 pm for your families housekeeping is fine as is the sky. Potentially there is holiday fund at £60 pm and haircuts £25 pm for the family.
In any event, you do not have surplus over and above your reasonable domestic needs so stick with it and do not sign any IPA offered.

If an IPA is sugested then get back on here without delay.

DD

whichwhydoIturn

So can you refuse to sign an IPA then ?What would happen in that case then ?

nert

Thanks for your reply that was really helpful. Another reason I put my partners contribution at £800 is because I thought as I earn £821 with nothing left over his contribution would need to be that also to show he contributes 50%?
Do you think the mobile phone would be acceptable? Really pleased you think no IPA would be put forward as this is my biggest worry at the moment.
Cannot wait to get it all sorted now- this is definitely the worst bit so far- the fear of the unknown and not knowing where I stand with things as I am a very organised person and am finding everything being taken out of my hands rather stressful!
First hurdle is Wednesday- following that the OR interview, car and IPA then I will feel alot better I think (that and a bottle of wine at the end of it taken out of that months shopping budget of course!)
Thanks again :-D

debt_doctor

whichwhydoIturn wrote: »

So can you refuse to sign an IPA then ?What would happen in that case then ?

Then the Insolvency Service could re negotiate with you or they could take it to court for an IPO.

My experience is that court is not what the IS want, and they have to fund it. Potentially either party could win / lose at court.

If you are being reasonable, potentially beyond the IS ridiculous spending limits, then stick to your guns is my advice.

DD

debt_doctor

nert wrote: »

Thanks for your reply that was really helpful. Another reason I put my partners contribution at £800 is because I thought as I earn £821 with nothing left over his contribution would need to be that also to show he contributes 50%?
Do you think the mobile phone would be acceptable? :-D

I think the mobile is acceptable, and you might want to pack out the expenses with hols and haircuts.

DD

nert

I would but didn't think i could as I don't have any surplus income to do it with? Am guessing they wouldn't take too kindly to a total of outgoings quite a bit larger than the incomings? Wouldn't the OR want to know where the extra is coming from? I'm confused. If they disallow something on there e.g the sky, could I then replace it with something else e.g. haircuts or would this not be allowed?

debt_doctor

nert wrote: »

I would but didn't think i could as I don't have any surplus income to do it with? Am guessing they wouldn't take too kindly to a total of outgoings quite a bit larger than the incomings? Wouldn't the OR want to know where the extra is coming from? I'm confused. If they disallow something on there e.g the sky, could I then replace it with something else e.g. haircuts or would this not be allowed?

I often submit negative statements to the IS, with the explanation of " I believe these are my reasonable domestic needs expenses, however, I am having to reduce my housekeeping still further to make my budget balance."

This allows for a future increase in income whilst you are undischarged.

DD

nert

Arh right I see thats interesting. I also didn't realise that holiday expenditure is allowable? I guess if I added those in that would also mean even if they did disallow something I still wouldn't have any disposable income left so it leaves me with more of a buffer?Also should i put that explanation on the expenditure sheet itself or just say it to the OR in the interview if he brings up the imbalance?

debt_doctor

nert wrote: »

Arh right I see thats interesting. I also didn't realise that holiday expenditure is allowable? I guess if I added those in that would also mean even if they did disallow something I still wouldn't have any disposable income left so it leaves me with more of a buffer?Also should i put that explanation on the expenditure sheet itself or just say it to the OR in the interview if he brings up the imbalance?

Yes, you are thinking correctly!
Personally I would put the explanation on the bankruptcy forms.

DD

nert

Fantastic I will alter that page tomorrow. Thank you so much for your help I really appreciate it. I will update as I go along...am just focusing on Feb 20th 2014 at the moment!