Help completing "Outgoings" on BR Forms

Zippyatrainbow

I am petitioning my own bankruptcy and have managed to complete the statement affairs, but now I'm not sure of what to put in the outgoings section. When I went to the CAB she said I wasn't allowed to put money for clothes, hair dos etc.....and now I don't know what to put.

Is there any websites which will help me with this? Not sure what I can include in my outgoings

Appreciate any help at all

Thanks

Claire

user55

You are allowed to put stuff for clothes and haircuts etc so she has misinformed you.

Let me find the helpful info and get back to you!

ETA:
http://www.insolvency.gov.uk/freedomofinformation/technical/techmanvol1/Ch25-36/Chapter31/part7/part2/part_2.htm

Zippyatrainbow

thanks, I really am stuck as to what to put down. I have had to move back in with parents after moving back to the area after breaking up with my ex last year. Plus I get comission on my wages but it isnt guaranteed - so again dont know what to put down!

fermi

On top of absolute essentials like rent/mortgage, food, housekeeping, travel for work, utility bills, council tax, etc... etc... the guidelines below are generally adopted by the OR. However each individual OR makes their own assessment.

These are a summary of the details contained in the link provided by user55. Detailed guidance on many of the items are contained in the link.

31.7.19 Expenditure items which can be allowed

The following provides a general list of expenditure items which can be included in addition to basic domestic expenditure when making an IPA/IPO calculation to establish whether the bankrupt has surplus income:

• 
  
• TV licence
• Household and car insurance
• Car tax
• AA/RAC or similar motoring assistance club membership
• Membership of professional body required in order to carry out employment (unless paid by employer)
• Hire of TV and/or DVD/video player (no more than one of each appliance per household)
• Prescription charges - see paragraph 31.7.20
• Dental and optical treatment - see paragraph31.7.21
• Mobile phone costs - see paragraph 31.7.22
• Dry cleaning costs - see paragraph 31.7.23

31.7.24 Other expenditure items to be considered

Outgoings assessed must be realistic and should cover the actual expenditure required to provide for the reasonable domestic needs of the bankrupt and his/her family. It may be necessary when examining the figures provided by the bankrupt to consider other areas of expenditure which the bankrupt may not have included, but which are necessary for meeting their reasonable domestic needs. Some bankrupts may find it difficult to assess the outgoings of themselves/and or their family where the expenditure is sporadic (e.g. buying school uniforms) or prior to bankruptcy they have not been in a position to meet their reasonable domestic needs as a result of other pressing debt repayments.
In these circumstances it may be necessary for the official receiver/trustee to refer to average expenditures in order to calculate the realistic outgoings required to meet the reasonable domestic needs of the bankrupt and his/her family.
The following suggested areas cover other types/amounts of expenditure claimed by the bankrupt which may need careful consideration when making an IPA/IPO assessment.

• 
  
• Clothing - see paragraph 31.7.25
• Holidays - see paragraph 31.7.26
• Hairdressers - see paragraph 31.7.27
• Extra curricular activities for children - see paragraph 31.7.28
• After school clubs - see paragraph 31.7.29
• Pets- see paragraph 31.7.30
• Rent arrears - see paragraph 31.7.31
• Maintenance payments - see paragraph 31.7.32

31.7.33 Expenditure items which should NOT be allowed

The following provides a general list of expenditure items which should not be included when making an IPA/IPO calculation, unless the bankrupt can prove there are extenuating circumstances:

• 
  
• Gym membership
• Sports expenses or club membership
• Additional pension contributions to enhance a pension
• Private healthcare insurance or similar (however see also paragraph 31.7.21)
• Social and entertainment expenses- see paragraph31.7.34
• Satellite TV - see paragraph 31.7.35
• Broadband internet costs (unless shown to be necessary for the bankrupt's paid employment) - see paragraph 31.7.35
• Excessive mortgage payments - see paragraph 31.7.36
• Student Loans - see paragraph 31.7.37
• Regular payments to charitable and religious organizations/tithing - seeparagraph31.7.38

There is room at the end of form 6.28 in the extra info Section 13 to explain the situation with respect to variable income. The OR is used to seeing this, and will deal with it fairly.

Hope that helps.

EDIT: If you are living back with your parents, put down a fair and reasonable share of the household bills.

tight_jock

PLEASE PLEASE PLEASE make sure you are doing your forms with a member of the money advice unit at the CAB as many of the volunteer advisors dont know their a*se from their elbow when it comes to BR.
No disrespect to the good people at CAB but it is a specialised area and your advisor should be fully conversant with the forms.

Good luck
:beer:

PixiePie

Also look through some of the threads on here from people doing their SOAs for BR, I found that helpful, and also posting my own up for advice. People here are grreat at finding extra things for you

sarah84

I put food, board money (i lived with parents at the time), travel costs, mobile phone credit, toilletries and clothing. They cant expect you not to need clothing and haircuts, but the idea is to show how much you need for necessities so putting £100's for clothes and hair might not be best! Good luck :-D

molly73

THIS INFO WAS POSTED BY SOMEONE ELSE WHICH WE USED.. ON HM REVENUE & CUSTOMS SITE.. MAY BE HELPFUL.

REC1820 - Completing Income & Expenditure forms

Income & Expenditure forms

Form 36A-1 for individuals
You will find form 36A-1 at [URL="file:///C:/Documents%20and%20Settings/our%20computer/My%20Documents/Davids%20financial%20file/attachments/rec1820a.doc"]REC1820a[/URL]. For consistency this version should be used in future.

Income and expenditure details will often be given in a combination of weekly and monthly amounts. To help consistency in determining a figure of uncommitted income you will need to consider the whole situation in terms of monthly or weekly instalments as the case demands. The following conversion formulae may be of assistance

<LI class=filledcircle>Monthly to weekly – multiply by 12 then divide by 52 <LI class=filledcircle>Weekly to monthly – multiply by 52 then divide by 12
• Four-weekly to monthly – multiply by 13 and divide by 12.

Discretionary expenditure

Discretionary expenditure is the level of spending for which no explanation or comment is needed. To help you assess this “trigger figures” have been devised and are shown in the table below. They represent what research by the Office for National Statistics shows to be average monthly spending in each category and are used throughout the banking and credit industry. These figures will be updated as more up to date information is received.
Expenditure categoryCouple with no children (£)Couple with children (£)Single person (£)Single parent (£)Telephone20302127Mobile Phone20202020Fares and motoring173181173188Housekeeping314483215364Children038068Health24142510Pets12161010Repairs and Maintenance35322720Other discretionary expenditure68975070
Where expenditure is above the trigger figures in the chart, you may ask the customer for an explanation. The chart does not cover all situations, for example a customer with more than 2 children or people with special dietary requirements or disability are likely to have higher figures of expenditure within certain categories.

There are a number of other categories for which there are no trigger figures.These are categories of expenditure where the customer has no discretion or control over the level of expenditure. They are listed in the chart below and unless you consider that the figure quoted for aparticular category of expenditure is excessive you should accept the level of expenditure.
RentPension payments/ AVCsMortgageLife assuranceOther Secured loansHP/ Conditional saleCouncil TaxTV licenceCourt finesMaintenance/ child supportOther housing costs
Business Budget questionnaire for limited companies

The form 36A-1 does not apply to corporate debt. For this reason a “ [URL="file:///C:/Documents%20and%20Settings/our%20computer/My%20Documents/Davids%20financial%20file/attachments/rec1820b.doc"]Business Budget” questionnaire[/URL] has been developed and is attached. It should be completed in all cases where the arrangement will exceed 3 months.

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molly73

Sorry the table hasnt come out right.. go to HM revenue & customs and search by rec1820.

fermi

molly73 wrote: »

Sorry the table hasnt come out right.. go to HM revenue & customs and search by rec1820.

The original info is here I think.

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM800120.htm