Going bankrupt

stundent

Hello all,

You may be able to see from my previous entries that I have been tryingood to get out of debt for a while.
All other avenues from increasing earnings to snowballing have failed, predominantly due to my addiction to gambling.

I have now decided it go bankrupt and have a few question regarding the forms and a potential IPA

Firstly I am student, as such my personal income is solely received from the student loan's company. It is in total 12747 per year. This is made up of about half loans and half grantshe provided by the government. Is it possible for the OR to take any of this income?

as a family we also receive income from my wife's wage 668 per month and benefits which are 182 per week tax credits and 133 per 4 weeks child benefit.

My wife has a car on hp at 282 per month. She also has her own debts of around 12k which she pays.

The questions relating to the forms are;
Do tax credits and child benefit get treated as my income or my partners contribution?
how of i show that my wife will need to pay all of her wage towards debt?

Thanks for your time

fermi

No, they cannot take any your loans/grants.

As you have no earned income it doesn't really matter how you represent it on the forms. They can't take her earned income, and she can do with it what she likes. Likewise benefits, as whether down as yours/hers/joint, they can't be taken.

Just fill it out in what way makes best sense.

stundent

Hi Fermi,

Thank you for your response.

Far be it from me to question your superior experience and knowledge on this matter, but ....

Are you sure? It all seems a little to good to be true that I am guaranteed no ipa.
Is there anything you can point to me to to guarantee this? As I have seen in the insolvency website that they cannot touch my student loan, but nothing regarding grants,

Many thanks in advance.

Also tone is difficult to convey online. The above is sincere

stundent

Hi all,

Can anyone confirm the above. I would really appreciate it. I suffer from anxiety at the moment due to medication and I know that not being sure would really get me going. I am looking to deliver the form tomorrow

Decoctor

This is from the Insolvency Service Technical Manual which I think answers your question.


"Section (b) State benefits


31.7.40 IPA or IPO should not be sought where bankrupt’s sole income comprises state benefits

(Amended March 2014)

An IPA or IPO should not be sought where the bankrupt's only source of income is state benefits. In the context of this chapter "state benefits” refers to all forms of income supplement and support provided by central or local government including, but not limited to: income support, job seekers allowance, disability living allowances, incapacity benefit, industrial injuries disablement, council tax benefit, housing benefit, state retirement benefit (state pension), child benefit and all forms of tax credit (child, working and pension). Payments of a War Disability Pension (Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006), the bankrupt having been injured on active service, should be regarded as a state benefit. There is no requirement to undertake an assessment of real disposable income where the only source of the bankrupt's income is state benefits. In all other cases an assessment should be made even if part of the household income is derived from state benefits."

AndyBSG

stundent wrote: »

Are you sure? It all seems a little to good to be true that I am guaranteed no ipa.

In all honesty, people worry about IPA's but from my(limited) experience most BR's don't end up with one.

The majority of people who go BR do so because they have no money so unless you have a chunk of disposable income every month once all living expenses have been paid then you shouldn't get an IPA.

stundent

Hi everyone,

Just got off the phone to national debt line to got through my budget.

Turns out that as a household we should have around 250 per month spare, and that 100 of it would be sort for ipa, there or there bouts.
I bought up my advice regarding student finance and apparently grants and bursaries are treated as available income for anew ipa and can be taken.

If anyone has got any more to counter to his specifically I would be grateful so that I can prepare it should an ipa be sort.

Thanks

tigerfeet2006

Do me a favour and pop up your SoA.

http://www.stoozing.com/calculator/soa.php

stundent

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.................... 1

Monthly Income Details
Monthly income after tax................ 1062
Partners monthly income after tax....... 668
Benefits................................ 921
Other income............................ 0
Total monthly income.................... 2651

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 282
Rent.................................... 445
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 18
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 10
Internet Services....................... 12
Groceries etc. ......................... 550
Clothing................................ 120
Petrol/diesel........................... 250
Road tax................................ 13
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 15
Childcare/nursery....................... 28.8
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 80
Emergency fund.......................... 10
Total monthly expenses.................. 2240.8


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 ...... 8000.....(282)......0
Total secured & HP debts...... 8000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
12000wife......................12000.....200.......0
Total unsecured debts..........12000.....200.......-


Monthly Budget Summary
Total monthly income.................... 2,651
Expenses (including HP & secured debts). 2,240.8
Available for debt repayments........... 410.2
Monthly UNsecured debt repayments....... 200
Amount left after debt repayments....... 210.2

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -12,000
Net Assets.............................. -20,000

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

stundent

So included Ineed there is my wife debts, she is not paying at the moment but will be paying soon.
Through out the next 2 months we will be receiving housing benefit as my student income stops.
We will receive 65 per week. But my student money is ghone.gone and does not start until October. I don't mind paying a ipa but if it is high I would prefer to go via route.

fluffy70

£550 for groceries for 2 adults and a child?? are you sure that it's that high? Hopefully someone can help by posting the link to the recommended figures that the ORs use in calculating disposable income - I think from memory that for a family of 2 adults and 1 child they estimate £400 a month.
I think for holidays you're allowed to keep £20 per adult and £10 per child per month so a total of £50
I would think that once you submit your SOA of your own income not including your wife's, and not including the HP for the car as long as it is only in her name (if you are on the HP agreement the HP company would not let you keep it if you go bankrupt) then the OR might see more of a disposable income for you to pay an IPA if as you say they are now taking into account the student loan (which cant be included as a debt in the bankruptcy - you will still owe this) and the grants.