bankruptcy and IPA

dan160987

HI all,

I am looking into going bankrupt soon. Both myself and my wife have a high level of unsecured debt and no assets.

I will be going bankrupt while my wife will attempt to enter a dmp *she has a HP vehicle she wpuld need to keep*

My question is probably a complicated one, I am a married father of 2 who has just started a university course. My income is solely from the student loans and grant i recieve to study.
I am wondering how the OR will work out my IPA if I have one and how much it is likely to be.
I undertstand that i need to get value to my creditors but would also like to ensure my wife and family are as comfortable as possible through the
worst of it.

Any help would be greatly appreciated

SOA to follow

dan160987

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1hp

Monthly Income Details
Monthly income after tax................ 953
Partners monthly income after tax....... 590
Benefits................................ 730
Other income............................ 0
Total monthly income.................... 2273

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 282
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 70
Gas..................................... 70
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 16
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 520
Clothing................................ 120
Petrol/diesel........................... 180
Road tax................................ 25
Car Insurance........................... 60
Car maintenance (including MOT)......... 15
Car parking............................. 25
Other travel............................ 40
Childcare/nursery....................... 80
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30
Entertainment........................... 20
Holiday................................. 30
Emergency fund.......................... 20
Total monthly expenses.................. 2302


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8500.....(282)......14
Total secured & HP debts...... 8500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
my debt........................25000.....0.........0
wife debt excludinghp..........12500.....0.........0
Total unsecured debts..........37500.....0.........-


Monthly Budget Summary
Total monthly income.................... 2,273
Expenses (including HP & secured debts). 2,302
Available for debt repayments........... -29
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -29

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -8,500
Total Unsecured debt.................... -37,500
Net Assets.............................. -46,000

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

psi2244

I was given a 0 tax code and the tax I would have normally paid had to be paid by me to the IPA.

tigerfeet2006

If your income is solely the grants and benefits then you cannot be given an IPA so don't panic. As you are not working you also won't get a nil tax code.

dan160987

Thanks guys.

My income is made up of student loans (maintenance loan) approx 3200, maintenance grant approx 4000, adult dependants grant approx 2700, and parental learner allowance approx 1500.
benefits ( child tax and working tax credits (144 per week)

wifes income is between 590 and 668 per month after tax.

the other question i have is that i have gambled inthe past two years will this likely lead to sanctions?

Thanks

Saltysea99

dan160987 wrote: »

Thanks guys.

My income is made up of student loans (maintenance loan) approx 3200, maintenance grant approx 4000, adult dependants grant approx 2700, and parental learner allowance approx 1500.
benefits ( child tax and working tax credits (144 per week)

wifes income is between 590 and 668 per month after tax.

the other question i have is that i have gambled inthe past two years will this likely lead to sanctions?

Thanks

Hi dan160987

I am also a full time uni student, I get approximately the same grants and loans as you mention above (as I also have two children), and my husband earns about the same as your wife, so weirdly enough have approx the same incomings. I went bankrupt in April this year and I haven't had an IPA, in fact I haven't heard anything from the OR since going bankrupt, so I'm presuming I would have heard by now. So just to put your mind at ease I doubt very much you'll have an IPA either.

Can't answer the gambling question I'm afraid, no doubt someone else will be along to answer that shortly!

Saltysea99 :beer:

alastairq

i have gambled in the past two years will this likely lead to sanctions?

The above, might result in the OR imposing a Bankruptcy Restriction Order/Undertaking.

What this means is the restrictions imposed whilst Undischarged [concerning directorships, school governors,,etc etc]......continue for the period the BRO/U is in force.

This does not mean you will be the possible subject of a surplus-based IPA during this period.....[once the 12 month AD point is passed]

As Tigerfeet says, since your income is basically 'benefits' based,not IPA will be sought.

Mmusic

There's a few things on the SOA that the OR wont accept.


entertainment £20
Presents £20


Correct me if i am wrong.

tigerfeet2006

As the OP is on benefits it won't matter and as he is showing a deficit anyway it's not really going to matter. He takes them off and he is in balance. No biggie on this one.