Ipa

FixitM

Thank you for your reply Kerry. Sorry for the delay, the Dr gave me some medication that's been knocking me out each evening, for my back. So if the OR feels the cost of something is too much, would they tell you so you can move/ find a cheaper supplier or change it? I still need to check my monthly calculations, as been having a horrible time with pain, so when it feels better and can think straight I need to do that.

We have nothing against paying back what we owe - we were in an IVA for over 4 years until my husband's contract changed and his pay was cut by over 50% - just we thought things like emergency fund, dental, optician, prescription costs would be allowed before they would look at an IPA?

In terms of swimming lessons, my daughter wants to change to do gymnastics with her friends. Is this likely to be allowed do you know? I feel like the meanest mum as continually having to say no to everything they ask for.

Does anyone know how much per person we would be allowed for an emergency fund, holiday fund, clothes, etc please? And are we entitled to ask for a copy of their calculation of the previously proposed IPA, so we can see where our calculations have gone wrong compared to theirs?

Thanks again for your help. x

FixitM

Thank you Debt Doctor. Would you think we are allowed to get a breakdown of their calculations, so we can see what it is we're doing wrong in our calculations?

Kerry511

Good to hear that you are getting some help with your back! Hopefully you will find a good balance with treatment/medication that will be more bearable :-)

From what I have learnt and read, the OR can ask about certain expenditure and challenge wether it be allowed or possibly reduce the amount stated if the need is not justifiable. But they can not just change supplier on your behalf! They would suggest you find a cheaper alternative or reduce spending in that area! Or leave it as it is (if you have a reasonable reason for expenditure)......
For example if you claim you need £100 per month for a family holiday it will be probably seen as too high. Unless there was a good reason to allow it! Therefor the OR may negotiate an amount that is seen to be reasonable for your household and if your income allows it! As holidays are normally allowed in your expenditure but wouldn't allow one to go on a luxury cruise for two weeks with paid childcare!! :-) But a reasonable one!
The same with the emergency fund. You are allowed £10 per person per month, so for you, hubby and 3 kids (£50 per month emergency fund) again if your income allows it! There's no point in adding it in if you will put your expenditure in minus.

Clothing is different to each individual but I would say £20-£30 per month per person is reasonable. But again it will depend on your income!

With things like mobile phone contracts it is reasonable to have one around £20-30 per month, but not one that is £70 per month! It will probably be questioned!..

We have no surplus, no holiday fund, no emergency fund but we have a clothing allowance of £125 per month for 5 children and 2 adults (includes Hubby's shoes for work) ..............


But that said you still have the right to a reasonable standard of living. It depends on the individual OR as well as some tend to be more lenient than others!

I would also say YES you should be given an explanation of how your proposed IPA has been calculated, especially if you feel it is not achievable! As you will be committing to this for 3 years (unless incomes changes then you submit new soa) You definitely need them to send you their breakdown of expenditure/income/surplus as it doesn't match yours!
That said you do need to check your current soa and work out if it's because you have calculated it wrong from your end! Due to weekly/monthly and calendar monthly amounts as it will calculate differently!
I suggest you call the OR or email them!
Ask them for a breakdown as it is different to your own!

But debt doctor is far better at explaining this that me :-) Has more experience and knowledge!!

My advice is based purely on my own experience, previous advice from other posters and google :-) :-)

I really hope this gets sorted for you! It's so stressful until these situations are resolved!


Stay positive :-)

Kerry511

Sorry to add......

Sorry I know you don't have a mobile at £70 per month. Was just using as an example :-)

Also with regards to swimming lessons changing to gymnastics, I am not sure :-(
Others might have advice here! My OR wouldn't allow my sons football at £5 per session per week. :-(

Also before you commit to any IPA I would say that included in your SOA should be
Emergency fund of £50
Holiday fund for a cheap get away (maybe in the country) for a break :-)

:-)

FixitM

Thank you for your reply Kerry.

So if the OR disagreed with something you'd put down, they should communicate that to you? I think once I'm off (or dose is lowered) of these pain killers and my head is a bit more clear, I will put together an email my husband can send to the OR with a few questions about the calculations, as my husband isn't good with writing these types of things.

Oh your poor son. How did you explain that to him? I'm finding it really hard telling the kids why we can't take them to Disneyland & Lapland like their friends, but can't face telling them that we will never be able to take them. Both girls want to finish swimming as they are bored of it (I'm comfortable with their ability now) but worried that if they change to something else, they won't be allowed by the OR. Then how do I tell them? They don't know anything about the bankruptcy, as are too young to understand what it even is and why it's having this impact.

Oh Kerry, I can only dream of a little break away, it's been so long and would be just amazing. Fingers crossed it will be a possibility.

Thanks so much for your help in answering all my questions. x

elljay

FixitM wrote: »

Thank you for your reply Kerry.
Oh your poor son. How did you explain that to him? I'm finding it really hard telling the kids why we can't take them to Disneyland & Lapland like their friends, but can't face telling them that we will never be able to take them. Both girls want to finish swimming as they are bored of it (I'm comfortable with their ability now) but worried that if they change to something else, they won't be allowed by the OR. Then how do I tell them? They don't know anything about the bankruptcy, as are too young to understand what it even is and why it's having this impact.

Oh Kerry, I can only dream of a little break away, it's been so long and would be just amazing. Fingers crossed it will be a possibility.

It doesn't really work like that and there's no reason to tell your children or anyone else. Once you have your IPAgreement (so you need their figures to agree the payment), you don't actually need to spend the agreed amounts within the categories - they won't ask to see your Aldi receipts each week to check or anything. So get good at collecting coupons, check out the yellow stickies, have a beans on toast day once a week, get loads of ideas on the old style thread and so on and you will be able to put the rest of the money away for holidays, football/swimming clubs and anything else. You get a small hol fund anyway though as my OR said, how on earth anyone's supposed to have a holiday on that amount, goodness only knows.

So for example, I have been allowed £50 a week groceries/household but I actually spend £25 a week by tightening my belt - £50 is a ridiculously generous amount for one person anyway (god, I hope my OR doesn't read this!!) so I've managed to save for huge car repairs, the first holiday (camping!) for a million years, a couple of short UK breaks last year and some nice pressies for family at Xmas in the nearly 3 years of my IPA. I've probably shaved bits off my other allowances too, eg petrol by bussing more and so forth.

So no need to tell your kids or anyone else, I feel better off before I was bankrupt, not having to put all my income towards business debts. I've heard other people say that too.

I do wish there was some consistency in how OR's officers behave, as mentioned, mine flew the spreadsheet that she uses over to me within minutes, yours seems like blood from a stone. Keep persevering!

EJ

Kerry511

Hi

As you have already put down swimming and this has already been allowed. Then I would just leave it at that. If you choose to change it to another activity (I am sure that's fine) unless you need to change you income/expenditure that is. Then there wouldn't need to be a reason to change it with the OR!

Life in its self can be so difficult, even without bankruptcy!! We all need a break at some point! We are only human and whilst "yes we got into debt" it doesn't mean that we have to live in poverty!
As for the kiddies........... My children know about the BR (well the older ones aged 13,12,10) the younger ones aged 7 and nearly 2 don't know......I discussed it with my hubby and we felt they would understand more if we told them. In our experience, I feel it helped with the kiddies knowing and they even did what they could by looking after there things! We had to cut back on a lot of things not just due to the BR but because I couldn't return to work (just before bankruptcy due to my youngest having autism) So there were lots of reduced spending etc..... we had to stop pocket money, money for school, day trips, takeaways, holidays, expensive birthdays and xmas, friends gifts for parties and food shopping was buying basics until we started the BR. Before BR we didn't have no money for clothes!
Now we are BR we find it easier the make ends meet and have basics :-)
we partly told them why mummy had to stop working for now and how we plan for a fresh start!

My son still goes football but my dad pays for it :-)
My dad enjoys spending this time with my son. Even though we paid for it to start with, the OR said he couldn't see how we even had enough money for it and that it wasn't considered necessary! He was open with a discussion and we disscussed it. He was polite and was just being honest :-)
His point seemed valid at the time as our income is low and he said that we wouldn't get an IPA as we already needed more of an income!
It didn't change my expenditure as my tax credits were reduced due to them taking back an overpayment :-(

At present my expenditure reflects my low income and if my income increases then I will increase my expenses to add things I feel we should have like a holiday fund (with a child that has autism we all need a break at times) also an emergency fund and care expenses for my youngest with autism!

Like elljay has said
If you choose to make cuts within your budgets to spend on other things, then that's up to you.
I am not in a situation at present to be able to do that, but if I was then I would :-)
I do however only put money aside from our clothing allowance but it goes on emergency living! If we do not need clothing/shoes then I stick the money aside (but every month it's gone) even if I don't spend it on clothing it goes on extra gas, extra groceries or replacing small house items like my kettle (that decided now was a good time to go) lol

I am only 3 months into our BR, so honestly I learn from us all! Reading all the posts, asking for advice and find everyone so supportive here!

You can always message me! It can be a lonely place becoming BR!
But it will not last foreva :-)

Soon we will be given the chance to start over after the years of constant battling with debt!
Mostly due to high interests/charges etc........ I am sure most of us would not have done it on purpose, but through no choice!

Take care for now :-)

FixitM

Thank you for your replies, and sorry for the delay in replying. I've been having a bad time with my back, and my arm that decided to join in, although not sure whether it's related or not.

Yes, I wish there was some consistency and it would be a bit clearer as to what we needed to do. We need to do a completely new SOA because my husband's self employment has changed. To make matters more complicated, his weekly income is variable, and he will only have received 2 weekly payments by the time we have to do a new SOA. So, I'm finding it very confusing as to how they will calculate a monthly average for SOA purposes, and whether our calculation will be the same. Because his OR refused to let us have a breakdown of their calculation of the last proposed IPA, I wonder if we have any kind of right to this information, like under the freedom of information act of anything? I'm finding the prospect of submitting another one quite stressful. We're not great at this kind of thing at the best of times, but as the last was so different to the figures they calculated, it feels so important that we get it right and we're obviously not doing it the same way they have.

Also, I was meant to be discharged on 18th February (although husband is still in his as we went BR at different times, as we could' afford 2 lots of BR funds). Will they write to me to let me know I've been discharged?

Thank you Kerry. Yes, it can be quite hard emotionally, I think especially as I feel the kids are suffering. I think it'd be different it it was just us adults. It's my middle child's Birthday soon, and she has all kinds of ideas about where she wants a party. It breaks my heart that she can't have it, and she's too young to explain the BR, so will have to think of something else to tell her. Yes, I'm looking forward to this being a distant memory and a fresh start hopefully one day. It's certainly not what I had planned for my children!

Thank you for all your help.

luvchocolate

Hi you will not be notified of automatic discharge ...but if you go on the I.S website and search your name then click on your name it will show your status as discharged. Its a good idea to print of a couple of copies as this is only there for 3 months.

Sorry I can be of no help on the other items, but someone else will be along soon.

FixitM

Thank you for your reply. It's still showing me on there as bankrupt. Is there any reason I wouldn't have been discharged after a year do you know please?