SOA Help

arcon5

And for what it's worth, i've always found the figures they accept in an IPA to be very reasonable indeed.

Drum_Master

Dear Arcon,

Thank you

I understand everything you are saying and I can assure you I would much rather pay every penny back then enter BR. I am looking at every angle and choice but people are left bankrupt due to a number of reasons and you will loose everything you have in order to give yourself a new chance. Additionally this will effect you for at least 10 years if not the rest of your life. If that is a get out of jail card, its not exactly a clean slate. Given the choice I would rather an option to pay for 5 years but keep a section of your income to give you a real chance. as before 50% of what you earn went to creditors. Currently 3 years of no extra income provides no incentive to better yourself and earn more. Personally yes but with the stress that goes with everyday life especially with promotions and higher positions in addition to dealing with the anxiety and stress of BR, you are left with no way to exert yourself as there is no money to socialist or even as mentioned previous to buy a chocolate bar, however you choose to give yourself that boost.

From the research I have done I have not seen the situation of an IPO/IPA and maybe this is clouding my judgement as I am only going from word of mouth. can you provide an example of what people have recieved? I am 26, single, have no kids and no mortgage. what kind of ipo would i be looking at using the above SOA

Please dont feel as if I am quashing what you say as this is far from it but I try not to judge anybodies situation and try to take in all information from all different view points. How else am I suppose to make this life altering decision?

Thank you

arcon5

The following are the categories on the IPO Questionnaires (at least they are on the IPO I receive:

Rent
Council Tax
Heat & Lighting
Water
Telephone
Housekeeping
Essential travel
Clothing
Maintenance payments
Fines
Other essential income (such as hair dressing, dental, etc)


Can you give figures for these categories (sorry I find the existing SOA a little overwhelming). I brief look at your income/outgoings though I think you have scope to increase the allowance for groceries, motoring expenses and a few other bits.
On the income you've declared I highly doubt it would be much at all - if anything.

JCS1

azulay111 wrote: »

Hi all,

I am in a situation where I am seriously considering bankrupptcy, for the backstory please view http://forums.moneysavingexpert.com/...8019&highlight=

From the advice I recieved I have filled in an SOA and will attatch below. I would be gratful of any advice regarding expenses on it and what else I can include to free up potential personal allowances and to ensure I have enough to 'really' live on. Especially in cas eof emergency (old car) or various other issues.

Any more insight you can give would as alwats be appreciated. How does the IPA fully work? I understand that it is personal to each controller but how generous are they usually? do they understand some of your needs?

Warm regards

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 56
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 12.5
Telephone (land line)................... 0
Mobile phone............................ 26
TV Licence.............................. 6 Isn't this usually £13?
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 125 [COLOR="rgb(65, 105, 225)"]Increase to £180-200[/COLOR]
Clothing................................ 25 [COLOR="rgb(65, 105, 225)"]Increase to £40-50[/COLOR]
Petrol/diesel........................... 200
Road tax................................ 12
Car Insurance........................... 30
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 [COLOR="rgb(65, 105, 225)"]Not allowed,add to holidays instead[/COLOR]
Haircuts................................ 10
Entertainment........................... 20[COLOR="rgb(65, 105, 225)"]Not allowed, add to holiday instead[/COLOR]
Holiday................................. 0 [COLOR="rgb(65, 105, 225)"]£30[/COLOR]
Emergency fund.......................... 0 [COLOR="rgb(65, 105, 225)"]£10[/COLOR]
Total monthly expenses.................. 932.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Halifax crecit ard.............2500......75........0
lloyds overdraft...............2500......40........20
santander overdraft............2500......20........20
Tesco Loan.....................15500.....296.......7
M and S Credit card............700.......25........17
Virgin Credit card.............2000......57........0
natwest overdraft..............2000......40........20
natwest overdraft..............3000......40........20
Total unsecured debts..........30700.....593.......-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 932.5
Available for debt repayments........... 317.5
Monthly UNsecured debt repayments....... 593
Amount short for making debt repayments. -275.5

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,700
Net Assets.............................. -30,200

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

A few comments above, but see what others think before re-doing.

arcon5

How many people are in your household? Are any of these dependents or partners? What is your current living arrangements? (By your CT do you live on your own in a flat?)

Okay just a few observations:

azulay111 wrote: »

Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 56
Electricity............................. 25
Gas..................................... 25 **are these correct? do you spend more in winter? If so can you increase these based on average yearly usage?
Oil..................................... 0
Water rates............................. 12.5**is this right?
Telephone (land line)................... 0
Mobile phone............................ 26
TV Licence.............................. 6**is this right?
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 125**could be a little higher..
Clothing................................ 25**could be a tad higher
Petrol/diesel........................... 200
Road tax................................ 12
Car Insurance........................... 30
Car maintenance (including MOT)......... 30**seems a tad low
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10**now allowed
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 932.5

Drum_Master

Hi Guys,

Thank you for all your help.
Currently I share a flat with a girlfriend but no legal ties so our bills are split. hence tv license being only £6. Its only 1 bedroom and a new build so costs are quite low. Rent is £600 a month.

How do I split everything this way? obviously she is not legally accountable for me so I assume she would not have to cover extra costs and that our rent bills etc is split down the middle?

Currently we overpay most of our bills but have only been here since march so the overall costs are unknown at the minute.

Using guides such as http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp can I apply for every section to be at its maximum?

Drum_Master

Here is a real breakdown, I may have missed a few things and over exagerated a few things like including sports but please rain this back if needed. In terms of private travel. travel for work is about £10 a day so unsure if I could up the amount. Additoianlly do you know, if I have x amount a year avialable for prescription etc and do not use it or need it for this in the end . Would that be checked? or would I just be fortunate and have it as extra? are the expenses followed throughout?



Bankruptcy Payment Order Calculation
[FONT=&quot]Household Details[/FONT]
[FONT=&quot]Name[/FONT]
[FONT=&quot]azulay111[/FONT]
[FONT=&quot]Number of people in my household[/FONT]

[FONT=&quot]1[/FONT]

[FONT=&quot]Income[/FONT]

[FONT=&quot]Monthly[/FONT]

[FONT=&quot]Wages / Salary[/FONT]

[FONT=&quot]1250[/FONT]

[FONT=&quot]Total Income[/FONT]

[FONT=&quot]1,250.00[/FONT]

[FONT=&quot]Outgoings[/FONT]

[FONT=&quot]Monthly[/FONT]

[FONT=&quot]Rent[/FONT]

[FONT=&quot]300[/FONT]

[FONT=&quot]Council Tax[/FONT]

[FONT=&quot]60[/FONT]

[FONT=&quot]Food, Toiletries and Cleaning[/FONT]

[FONT=&quot]206[/FONT]

[FONT=&quot]Electricity[/FONT]

[FONT=&quot]20[/FONT]

[FONT=&quot]Gas[/FONT]

[FONT=&quot]20[/FONT]

[FONT=&quot]Water[/FONT]

[FONT=&quot]10[/FONT]

[FONT=&quot]TV Licence[/FONT]

[FONT=&quot]6[/FONT]

[FONT=&quot]Clothing and Footwear[/FONT]

[FONT=&quot]40[/FONT]

[FONT=&quot]Telephone (Mobile)[/FONT]

[FONT=&quot]30[/FONT]

[FONT=&quot]Travel - Private[/FONT]

[FONT=&quot]200[/FONT]

[FONT=&quot]Holidays[/FONT]

[FONT=&quot]40[/FONT]

[FONT=&quot]Hairdressing & Personal Care[/FONT]

[FONT=&quot]15[/FONT]

[FONT=&quot]Sports, Entertainment, Hobbies[/FONT]

[FONT=&quot]30[/FONT]

[FONT=&quot]Dentist[/FONT]

[FONT=&quot]15[/FONT]

[FONT=&quot]Prescriptions[/FONT]

[FONT=&quot]10[/FONT]

[FONT=&quot]Opticians[/FONT]

[FONT=&quot]15[/FONT]

[FONT=&quot]Broadband Costs[/FONT]

[FONT=&quot]5[/FONT]

[FONT=&quot]Car tax[/FONT]

[FONT=&quot]12[/FONT]

[FONT=&quot]car insurance and breakdown[/FONT]

[FONT=&quot]40[/FONT]

[FONT=&quot]maintanance and mot[/FONT]

[FONT=&quot]50[/FONT]

[FONT=&quot]Total Outgoing[/FONT]

[FONT=&quot]1,124.00[/FONT]

[FONT=&quot]Disposable Income[/FONT]

[FONT=&quot]Monthly[/FONT]

[FONT=&quot]Total Income[/FONT]

[FONT=&quot]1,250.00[/FONT]

[FONT=&quot]- Total Outgoing[/FONT]

[FONT=&quot]1,124.00[/FONT]

[FONT=&quot]- £10 Emergency & Sundries Allowance for each dependant person in household[/FONT]

[FONT=&quot]10.00[/FONT]

[FONT=&quot]Disposable Income[/FONT]

[FONT=&quot]116.00[/FONT]

[FONT=&quot]Potential Funds For IPA/IPO[/FONT]

[FONT=&quot]Monthly[/FONT]

[FONT=&quot]Disposable Income[/FONT]

[FONT=&quot]116.00[/FONT]

[FONT=&quot]- Official Receiver Standard Surplus Allowance[/FONT]

[FONT=&quot]20.00[/FONT]

[FONT=&quot]Potential Funds For IPA/IPO[/FONT]

[FONT=&quot]96.00[/FONT]

Drum_Master

Any more help regarding this situation and SOA would be highly appreciated.

Kind regards

zoeeleanor

I have been bankrupt for 2 months and have just been asked to pay £533 from my income for IPA plus £366 from NT tax code. i have refused to sign. They would not allow any expenses for social, alcohol, pets, definitely not holidays, no satellite TV, no broadband, no pet insurance, no money for supporting husband ( he is unable to work due to ill health) no diesel for trips out etc etc. So basically, I have to get rid of my pets, shoot my husband and eat rice for 3 years. I cannot find any legislation that says the IPA/IPO has to last for 3 years ...this is a maximum in the legislation. Discharge is described as being released from bankruptcy debt so if you are discharged after a year, why must you continue to pay for a further 2 years.

I would be interested to hear from anyone who challenged an IPA or has any case law!

TheGardener

Hi. You can have a small allowance for a modest uk holiday - about £20, broadband is fine if part of a basic phone/internet package. I was allowed extra petrol to visit to my elderly parents once a month, no pet insurance but was allowed food and allowance for vet bills (one small dog in our case - 10 exotic cats that eat caviar would be a no-no though ) You wont get anything for social/hobbies and sports only if evidenced demand of medical need. You may have to ditch the breakdown cover. Private travel? - if its commuting it fine.
There are guidelines on the amounts here http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp

An IPA is just that - an agreement and you need to make your case for any of your expenditure . If you live with your girlfriend and share costs 50/50 then that's fine.

Your gas and electric look very low - be realistic, I would guess a very small, well insulated flat would still cost about £650 pa in total a year in gas and electric so £30 might be a more realistic figure?

My debts would have taken 30 years (20 years past my retirement!) to pay off on my salary - 3 years sounds like a pretty good deal to me.

Otherwise I'd have said you were fine.