SOA - non dependant children

Nikellie

Hello knowledgeable peeps,

I'm prepping an SOA in readiness for BR and wondered if you can include expenses for children's visits every other weekend?
Can I budget for pocket money and an annual holiday with them, even though they don't live with me full-time?

I intend to post a SOA in due course and around 25% of my income is variable overtime. I've researched an IPO and it seems an extra £20 is allowable. I don't want any IPO dragging on for three years and intend to manage my overtime accordingly. Does anyone have practical experience/advice as to how the OR/Trustee views this?

Any replies gratefully received with thanks in advance.

michael1983l

Nikellie wrote: »

Hello knowledgeable peeps,

I'm prepping an SOA in readiness for BR and wondered if you can include expenses for children's visits every other weekend?
Can I budget for pocket money and an annual holiday with them, even though they don't live with me full-time?

I intend to post a SOA in due course and around 25% of my income is variable overtime. I've researched an IPO and it seems an extra £20 is allowable. I don't want any IPO dragging on for three years and intend to manage my overtime accordingly. Does anyone have practical experience/advice as to how the OR/Trustee views this?

Any replies gratefully received with thanks in advance.

If BR is the same as IVA then I think Overtime is only contributed to the BR at 50% and you get to keep the other 50%

I am hoping someone can confirm this as I want to know myself.

Also as regards to the children, I take my kids after school but dont have them overnight enough to reduce my Child Maintenance from 100%. Stepchange have allowed me an inflated housekeeping budget to reflect this, in fact they gave me £300 a month for groceries and toiletries even though it is only 1 adult, with 2 non dependant children visiting regularly through the day in each week.

Not sure how an OR will view that yet though.

Nikellie

michael1983l wrote: »

If BR is the same as IVA then I think Overtime is only contributed to the BR at 50% and you get to keep the other 50%

I am hoping someone can confirm this as I want to know myself.

Also as regards to the children, I take my kids after school but dont have them overnight enough to reduce my Child Maintenance from 100%. Stepchange have allowed me an inflated housekeeping budget to reflect this, in fact they gave me £300 a month for groceries and toiletries even though it is only 1 adult, with 2 non dependant children visiting regularly through the day in each week.

Not sure how an OR will view that yet though.

Well, if Stepchange have recommended an increase then the OR must be ready to consider such circumstances.

As to an Income Payments Order, I understood you can only have £20 disposable income (the rules have changed). Therefore I will have to manage my overtime otherwise I'll be working for nothing and giving it to the OR.

I want to get off on the right foot with the OR and have a sensible SOA but equally don't want to short change myself.

Luckily I'm a relatively frugal individual these days (learned my lesson!) so I think I'll manage for 12 months of the BR, but no longer I hope.

Thanks for your reply, reassuring to know I'm not the only one in a fiscal mess!

michael1983l

The fact that overtime is a voluntary way of raising extra cash, then I think they understand you will not do this unless you are rewarded for it. Hence the reason they let you keep 50% in an IVA to spend how you like and only 50% is regarded as effective payment towards your debt. They realise you just won't do extra hours if you not getting paid for it. So I think it probably stands the same on an IPA but I am waiting for confirmation.

I found this relating to bonus payments but could not find anything relating to overtime payments.

As an alternative to losing the entire payment, the official receiver may seek to agree in principle a voluntary agreement with the bankrupt, such that after the bankrupt has received his/her bonus payment, he/she agrees to pay a voluntary payment to the official receiver to be paid into his/her bankruptcy estate. It is suggested that a minimum 50% of the bonus received should be requested as a voluntary payment to the estate.

michael1983l

https://forums.moneysavingexpert.com/discussion/1611551

silvercar

michael1983l wrote: »

https://forums.moneysavingexpert.com/discussion/1611551

That thread is 4-5 years old and rules have changed.

I understood that regular overtime would be of interest to the OR, and the 50/50 rule was not used in bankruptcy. So the sensible thing may be to avoid overtime for a year.

Nikellie

That thread is nearly 5 years old, there are current guidelines on bis.gov.uk/insolvency (this site won't let me post link because I'm a newbie)

Not so good now is it!! But it does say IPA' s are only granted if they are affordable.

egrescrimp

In bankruptcy you cannot claim for children's pocket money. You can put down expenses for covering the children being there every other weekend as it will cost money but it must be reasonable, you can have a holiday fund too but the OR might not let you include them in the holiday fund.

Please remember that the SOA is negotiable, they may say no to something but may increase something else to help cover the costs. The OR isn't there to punish you, they have to be fair though.

Nikellie

silvercar wrote: »

That thread is 4-5 years old and rules have changed.

I understood that regular overtime would be of interest to the OR, and the 50/50 rule was not used in bankruptcy. So the sensible thing may be to avoid overtime for a year.

Thanks for your reply, good to hear from you.

My SOA may well need to include a small amount of overtime otherwise there will be an income shortfall. If I'm allowed to include allowances for a holiday with my kids, and an amount to help when they stay over, then it will ease the pressure on my finances.

My head tells me the OR will say allowances for kids are included in the CSA maintenance calculation but I don't know for sure.

Anyone?

Nikellie

egrescrimp wrote: »

In bankruptcy you cannot claim for children's pocket money. You can put down expenses for covering the children being there every other weekend as it will cost money but it must be reasonable, you can have a holiday fund too but the OR might not let you include them in the holiday fund.

Please remember that the SOA is negotiable, they may say no to something but may increase something else to help cover the costs. The OR isn't there to punish you, they have to be fair though.

Hi and thanks for replying,

Negotiable it is then, I accept the need for the OR to be fair as ultimately it's my responsibility for the debt and the OR needs to demonstrate fairness to creditors.

However I don't want to spend the next 12 months not being able to manage because I've underestimated my SOA.

egrescrimp

Nikellie wrote: »

Hi and thanks for replying,

Negotiable it is then, I accept the need for the OR to be fair as ultimately it's my responsibility for the debt and the OR needs to demonstrate fairness to creditors.

However I don't want to spend the next 12 months not being able to manage because I've underestimated my SOA.

The OR will want to make sure you aren't left short, post up your SOA and people will be able to see if they can help you maximise certain areas so you aren't left short.

Please keep in mind if you have over £20 surplus you will be asked to pay an IPA for 36 months. An IPA is an agreement, so if you aren't happy with it, you can negotiate that too