Bankruptcy income payment agreement

Tammykitty

F4286 wrote: »

This is my statement of affairs if anyone wouldn't mind looking? Obviously there can be cutbacks like gifts, groceries and few other bits like laundy but with my new travel cost and losing my car i'll literally have no money let alone 700 for bankruptcy each month!


With a car my fuel cost was about 600 each month, and debt management plan which pretty much that and other bills took all my money!


If anyone wouldn't mind just having quick glance for me be much appreciated




Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 54
Gas..................................... 52
Oil..................................... 0
Water rates............................. 55
Telephone (land line)................... 20
Mobile phone............................ 30 - Don't think this will be allowed - SIM only contract should be looked into.
TV Licence.............................. 0
Satellite/Cable TV...................... 30 - Don't think this will be allowed?
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 50 - Don't know what the OR will allow, but personally I think its too high, that's £600 a year
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 1006
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 0 - you should really get some
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 100 - £1200 a year on holiday - not necessary
Emergency fund.......................... 50
Dog Food................................ 50
Dentist................................. 10
Laundry................................. 40 - is this for work clothes - is there anyway of doing it cheaper?
Total monthly expenses.................. 2317


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 5500

Hire Purchase Debts
Description....................Debt......Monthly.. .APR
Car............................13000......333.......18%




Unsecured Debts
Description....................Debt......Monthly.. .APR
LLoyds Overdraft...............2314......100...........
Lloyds Loan....................3414......100...........
Santander Credit Card..........5428.61...100...........
Tesco Loan.....................1824......100...........
Total unsecured debts..........12,980.61...............-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 2,660
Available for debt repayments........... -660
Monthly UNsecured debt repayments....... 400
Amount left after debt repayments....... -1060

Personal Balance Sheet Summary
Total assets (things you own)........... 5500
Total HP & Secured debt................. -13000
Total Unsecured debt.................... -12979.61
Net Assets.............................. -20,479.61

I am surprised you we were allowed to go bankrupt with this budget as you won't be able to stay out of debt as expenses are still more than income.


In terms of travel, as above can you not buy an old car (And make it an economical one so your fuel costs less than £600 a month!)


Not sure how the OR will react to spending £90 a month on a pet.


Don't know how they will react to the emergency fund or gift fund either.






I have other comments on the SOA above

philnicandevan

Have a read here...

https://www.gov.uk/government/publications/insolvency-service-household-expenditure-survey-in-connection-to-income-payment-agreements-ipa

bear in mind this is a GUIDE ONLY! not to be used word for word...as it's not regularly updated either but will give you a small idea....some users did in the past and OR's will go through everything with a fine tooth comb!...I usually tell everyone put down what you currently pay & see what happens as one receivers office will allow different things to others.

TheGardener

You need to come up with a budget that balances - the whole point of BR is to re-set the scales to a balance between income and expenditure. Fiddling around with phones and haircuts is not the solution here -the only way your budget is going to balance is if you find a way to solve the travel costs and then learn to prioritise your outgoings. How much are the costs if you have a car - petrol etc?

Gas/electric - I pay around £70 pm for a 3 bed semi with 3 adults in it. Are you on pre-pay? You should be able to get this much cheaper. If you are paying arrears of in this amount then they should fall into your BR. I'm surprised that the water is so high too - again, are you paying arrears in this figure?

You are paying out £80 a month in media but you haven't included a TV licence? Get a cheaper package for mobile/internet if you don't watch live TV. You should be able to get that for around £30 a month.

Check out PDSA for help with the vets bills and review that pet food bill! - you could up you own food bill to £300 per month but the OR will likely expect the dog food to come out of that (what does the pooch eat that costs so much!!)

Rent is low but council tax is high? - have you got arrears in that amount? Any CT owed will fall into your BR

Entertainment and presents generally not allowed if no kids
Holiday allowed but only £20ish a month I'm afraid
Emergency fund should be around £10 per month
I would agree you need a bit of house insurance - should'nt be much for a contents only policy.

BEWARE - the OR's 'allowances' are not 'allowances' at all - they are guidelines.

The_Real_Cheddar_Bob

Were all your debts not included in your bankruptcy?

i cant quite make heads or tails of this. Every credit agreement/bill/loan was included in my bankruptcy......

everyone has their reasons for going bankrupt. Are you not able to stay with family and wait the initial year out? The OR can't take what you dont have, unfortunately your statement of affairs shows lots of ways the OR can take "spare" income.

TheGardener

rjwr wrote: »

Were all your debts not included in your bankruptcy?.

Yes they will be - the OP's problem is unusually high transport costs and what appears to be an unusually high IPA request from the OR.

Advice given so far is to try and make the OP's monthly budget balance and evidence that the IPA the OR is asking for may be too high.