Advice with I&E please

taib0

Hi guys, I have been advised on this forum to list this as a separate thread so more people can see it. I am currently filling in my bankruptcy forms ready for county court and I don't want to mess up the I&E as there is no going back once its submitted. I know we will end up having to pay a monthly IPA and I am worried it will be expensive. I would be sick to be made bankrupt and still have a horrible big monthly payment around my neck that seems pointless. I would appreciate any advice from anyone who's been through the same thing,

Thanks, Taib0


mortgage 995
mortgage protection 54
council tax 102
housekeeping/food 400
gas/electric 80
water 39
telephone/mobiles 60
clothing 80
life Insurance 24
Home Insurance 43
car tax x2 18.50
car insurance x2 217 ( 2 taxi's ) public liability insurance £2600 pa
fuel (diesel) x2 400
family dentist plan 35
opticians 10
haircuts 10
tv licence 10.95
holidays 70
Total £2648.45


Income

my earnings 1800
wife's wages 400
child allowance 120
child tax credits 410 this is due to change as my
16 yr old has just left school
and starts college in september

DEBTMONKEY1A

Taibo......I'm sure these can be 'tweaked' a bit...some others will come on here to help. There are other things you can claim for, 'meals at work' is one (ie takeaways...sandwiches-this is seperate from your food allowence-I was advised on this by Simon Wiggins-google' ask the expert' on the debthelpuk web-site-you can post on there/ask questions to)...also 'miscelaneous personal expenses', repairs, etc...search this site for posts by debtmonkey 1 (not 1a-had to re-register as forgot password & system kept kicking me out)-bear in mind I'm a single guy! My OR did not even query my outgoings. As i said-Simon Wiggins on afore-mentioned site is an insolvency practiotioner. I would say this could be tweaked so your ougoings exceed your income (don't forget there are laways things people forget to budget for). Again-what about car repairs/mantenance??? Breakdown cover??? If you have not got this get it now.

As far as I understand it-you have to consistently have £90 a month or more for the OR to make an IPA. If yopur outgoings exceed your income there will be no IPA & very possible early dishcharge. Look in to it further & check out the other web-site. Make sure you put in the maximum you are allowed to!

tigerfeet2006

You can put in things like school outings/clubs/pocket money for the children.

gettingitsorted

Have a look on here for info on IE'S its a very helpful site

http://bankruptcy.informe.com/index.php

fermi

I'll repeat what I said on your other thread, so that things don't get repeated here and to bump this.

Child benefit can't be included by the OR in an IPA calculation, so that knocks off £120 per month off the income on the SOA for starters (although you must still put it on the forms).

* Haircuts can be increased to £23-26 per month. £10 per adult + £3 per child.
* Family dental plan: The OR will sometimes allow this, but you need to be able to prove that you have no realistic access to any NHS dentists.
* After school clubs/activities. Many people are allowed to put a small amount for these. I expect some people will let you know what the OR allowed them to put.
* Add breakdown cover.

Some extra suggestions for items you may have forgotten can be found here:

http://forums.moneysavingexpert.com/showthread.html?t=442224

although many items listed probably won't be allowed. But it's good for jogging the memory.

taib0

Hi fermi, thanks again for all your help and advice we really appreciate it

Regards,

Taib0

Posthinking

Mortgage?? You need to pm Rich on this one. Depending on the equity in your home you may have a problem. The OR may also seize your life insurance, mobiles are too high, unless used in your business. Rest looks ok but add what has been said above

taib0

hi guys, hi postthinking

"mortgage you need to be pm rich on this one" ?? sorry what do you mean.

We owe £140,000 on the mortgage plus £19,000 in charging orders totalling £159,000. The house is worth around £170,000 to £175,000 so we do not have loads of equity and what we do have I am hoping my family will be permitted to purchase from the OR

regards, taib0

philnicandamy

Think postie made a typo....he meant to say contact Richard_S either by starting a new post or PM he's pretty good on all matters property & mortgage etc

Richard_S

taib0 wrote: »

hi guys, hi postthinking

"mortgage you need to be pm rich on this one" ?? sorry what do you mean.

We owe £140,000 on the mortgage plus £19,000 in charging orders totalling £159,000. The house is worth around £170,000 to £175,000 so we do not have loads of equity and what we do have I am hoping my family will be permitted to purchase from the OR

regards, taib0

Hi taib0,

The equity or Beneficial Interest in your house is between £11k-£16k and you're correct in that your family will be given the opportunity to purchase that interest.

I think what Postie (Posthinking) is getting at is the level of your mortgage repayments. If you live in an area where housing is expensive and £1k a month is a reasonable amount to pay in a mortgage or for rented accomodation then you won't have a problem.

If the O.R deems that your mortgage payments are excessive given the local housing market and believes that you could move to a smaller house or into rented accomodation for say £500-£700 per month then that would make more money available for an IPA.

Don't forget that there's nothing wrong with having a negative I&E Budget; your answer to that is you appreciate the problem and you're doing everything possible to balance your budget. Your income looks high for two taxis; are you sure that realistically you can achieve that level of income?

I'd be tempted to be a little more conservative with your income levels.;)

Regards

Richard

taib0

Hi Richard, thanks for your advice. I work 7 days a week 12 hour shifts to earn that amount of money ( and I'm still skint ) and I have had a bellyfull thats why I'm going BR I just can't keep up anymore.

Would the OR not think I am trying it on by having a negative I&E I am really worried they will frown on the fact that they can't nail me for an IPA because there isn't enough left each month. To me it is so obvious and probably the same for most of us on this forum I have more going out than what I have coming in thats why I'm in this damn mess.

Thanks guys,

Taib0