ipa while living with parents

going_bust_2014

Hi all it looks like im going to have to delare bankrupt soon mainly due to marrage break up, anway have read up on ipo/ipa and tryed to do a calculation but as im currently back living with parents I dont know if they will allow my living costs as I pay 60 pounds a week to my parents. This covers all living costs for me including rent, heating, food, tv ect and also me having my daughter stay 3 days/ 2 nights a week. Will they accept that or will I not be able to use it.

michael1983l

going_bust_2014 wrote: »

Hi all it looks like im going to have to delare bankrupt soon mainly due to marrage break up, anway have read up on ipo/ipa and tryed to do a calculation but as im currently back living with parents I dont know if they will allow my living costs as I pay 60 pounds a week to my parents. This covers all living costs for me including rent, heating, food, tv ect and also me having my daughter stay 3 days/ 2 nights a week. Will they accept that or will I not be able to use it.

Yes they will accept that. £60 a week is only a small contribution considering it includes everything. You could get away with paying them a lot more. Your parents are under no obligation to keep you and a court knows this, so as long as you are paying a reasonable amount in the eyes of the court then there will be no issues.

going_bust_2014

Thanks, wasnt sure as none of the calculators seem to take that into account. I know when I move out I will have to contact them again and redo but for now its reassuring that I wont be dragging them in. To be clear the payment has always been cash should I set up a bank transfer every month to show proof.

michael1983l

going_bust_2014 wrote: »

Thanks, wasnt sure as none of the calculators seem to take that into account. I know when I move out I will have to contact them again and redo but for now its reassuring that I wont be dragging them in. To be clear the payment has always been cash should I set up a bank transfer every month to show proof.

I'd consider splitting the bills 3 ways, that way less money would be left for the IPA and your parents would be better off for it. Double check with someone who knows more than me but I am sure it would be fair to split the "essential" bills 3 ways.

Not stuff like sky sports, but gas, elec, food, phone ect is ok as long as it is a reasonable sum for each.

going_bust_2014

I really dont want to drag my parents and their financial details into it , so if they will accept that amount without any details needed thats fine. By the time I subtract car costs like insurance car tax and petrol their wont be an awful lot for me to pay.

michael1983l

going_bust_2014 wrote: »

I really dont want to drag my parents and their financial details into it , so if they will accept that amount without any details needed thats fine. By the time I subtract car costs like insurance car tax and petrol their wont be an awful lot for me to pay.

You do not need to involve your parents at all, just find out what a third of each bill is. And tell the court, they will not speak to your parents at all.

P.S. If your car is not essential for work i.e. no public transport or it is worth more than £1000 then do not expect to keep it once Bankrupt as the OR will take it as an asset.

CKhalvashi

going_bust_2014 wrote: »

I really dont want to drag my parents and their financial details into it , so if they will accept that amount without any details needed thats fine. By the time I subtract car costs like insurance car tax and petrol their wont be an awful lot for me to pay.

As long as the figures seem reasonable, it probably won't even be queried.

Splitting the bills 3 ways would make good sense IMO.

CK

going_bust_2014

Thanks for the info
my car is a runabout worth about 1000
but their is public transport as I work in a town centre but I also use the car to take my daughter to school and also to see her as she and her mum live 45 minutes by car away.

owlet

I live with my parents too and I put the amount I pay them. Where the form asks what other members of the household contribute I put N/A. I explained in the notes at the end that I paid board as I lived with my parents as opposed to rent and being a tenant. The OR was fine with it.