IPA IPOQ form - income less than expenditure

elljay

I have a few months of my IPA left before the 3 years is up but have had to notify C-W of a change of circumstances. I'm just filling in the new IPOQ and it will show that my income is now less than my allowed expenses. The expenses are not that different to those allowed initially, it's just that my income has dropped.

Do I need to justify why on paper my income is less than my expenditure or will they realise that I cut back in some areas/budget carefully to pay for others. I assume I will receive a zero IPA for the last few months but that still doesn't bring expenditure down to income. I'm concerned that if I give them too much info about how I'm managing they will cut back the allowances. Eg they allow £50 a week for food but I eat half of that and the rest saved towards other things like car breakdowns. I've always felt my allowances were very generous anyway!

Will they even be at all concerned that on paper my income is less than expenditure even though I'm definitely managing?

Sorry for the waffle, many thanks

EJ

debt_doctor

Hi,
All you have to say is that you are cutting back your expenses still further to make your budget balance.


I use negative financial statements for clients all the time - especially in IPA calculations. The obvious comment is "well, if you haven't got the money, then they can't be your expenses"


My answer is that my clients claimed expenses are the reasonable domestic needs of themselves and their family, unfortunately, at this time, their income only provides for their basic needs, which is below the threshold of the Insolvency Act test for any IPA to be agreed.


This allows for future income increases (up to a point)


However, it would be wise for you to stick to " you are cutting back your expenses still further from those stated to make your budget balance".


DD

elljay

Thank you very much indeed DD, really helpful. I wasn't sure I'd made myself clear but you obviously managed to steer your way through the waffle. I will word my accompanying letter as you suggest.

I don't anticipate my income will rise during the next few months - at 66 and with huge 'elderly parent' responsibilities at the moment my present part time work plus pensions will get me by, though wouldn't want to rule out a further job in the future that will probably be post IPA. Hopefully this will now be my last assessment.

Thanks again.

EJ