Income & Expenditure for IPA question?

Brandnewstart79

Good afternoon,

I have entered into my IPA and i'm paying back £370 a month. My circumstances have now changed slightly where i can no longer rely on my wife to taxi me to and from work as it conflicts with her commitments due to my shift pattern so we have been given a car by her parents.

I'm now paying for 2 lots of car insurance, car tax, MOT, servicing and our fuel expenses will go up also leaving us shorter each month.

Will this be a problem with the OR if we now have to have 2 cars and are spending double the amount on everything?

Regards

tigerfeet2006

If it is the only possible way for you to get to work to earn money to live then no he won't have a problem.

How do you mean you are paying two lots of insurance etc. Does your wuife have an income?

National_Debtline

This sort of thing is always assessed on a case by case basis. The OR would likely consider how much things have changed since the IPA was first set up and if 2 cars are essential now.


They may also look at the additional second car - has it been given to you to keep as a gift or to borrow whilst you are struggling? If it is a gift then it would now be classed as your asset and (depending on its value) could be at risk in the bankruptcy (if you are not yet discharged).


Laura
@natdebtline

Brandnewstart79

Afternoon,

The new car is in my wife's name who is not declared bankrupt and she works part time earning £400 a month so all the money she gets is her own to help with her rehabilitation in getting better due to her breakdown as discussed with the OR when we worked out my IPA.

With it being in her name am i right in saying that its not my asset so cannot be touched?

I'm in the forces and with me working away i need a car to commute to and from work and to travel home on weekends and she needs her car to commute to work also so that's the main reason we have a second car.

Regards

Brandnewstart79

can anyone offer advice?

fermi

It's the asset of whoever paid for it from their monies, no matter what it says on the V5C. If it's her asset, they cannot touch it.

Brandnewstart79

Thank you for clearing that up for me