IPA requested from OR

HothHan

I was recently made bankrupt and an IVA has been requested for over £600 a month . The letter states that I need to sign it within 14 days, but it does't go into detail regarding the what I am allowed for specifics. Should I ask for breakdown of what expenditure I have been allowed and am I entitled to this?

StopIt

According to this? You may not be given an answer.


https://forums.moneysavingexpert.com/discussion/5634677

The Household Expenditure Survey (HES) with its guidance allowances for expenditure is no longer used. Instead, the Money Advice Services Standard Financial Statement (SFS) is now used to assess what reasonable expenditure may be.
Unlike the HES 'allowances' that are released on the Technical Manual - the SFS allowances are not released to the public and will not be published on the Technical Manual.

Of course there's no harm in asking and an IPA is an agreement so if you were not happy you do not have to sign but then it'll likely go to court for an IPO.

TakeAwayKing_2

Am guessing you can't afford that much in which case surely they need to tell you how they came up with the wrong figure for your surplus.

HothHan

I could live with it, and I did put all my main expenditure down but just wondering it I could negotiate a lower figure, for things like emergency fund, modest holiday or other things that may be allowed. I literally don't know what has been allowed and what hasn't. They have just come back with a figure and no explanation at all. For example, I put a personal pension payment on the expenditure form, if this has been included then I will have to pay that, but if not then I won't be doing so.

TheGardener

If you submitted a fully costed and realistic SoA that you were happy with to the OR - then the figures will be based on that. However, if you feel you were stressed and not thinking clearly during your BR and rushed the SoA or left out significant reasonable expenditure by mistake then you need to start negotiating. The 'A' in SoA = 'A'greement. If you refuse to sign it without explanation then they OR can get a court order, but because this costs them £, they will endeavour to avoid it if the request to negotiate is a reasonable one.
Complete an SoA here http://www.stoozing.com/calculator/soa.php and post it to the board (there is a format facility at the bottom) so you can get help with it but do remember that not all the heading on it are actually allowable expenses (like entertainment)

HothHan

Thanks for your reply
I don't think I put anything down for:

• Presents (birthday, christmas etc.)
• Holiday
• Household Emergency Fund

However, I'd imagine these will be discretionary

TheGardener

HothHan wrote: »

Thanks for your reply
I don't think I put anything down for:

• Presents (birthday, christmas etc.)
• Holiday
• Household Emergency Fund

However, I'd imagine these will be discretionary

Holidays (modest UK weekend style - not Miami ) and an emergency fund are permitted but presents are not normally covered.
The other things people often forget are prescriptions, optometrist /glasses, under estimating parking charges and petrol usage, basic contents insurance, dry cleaning (works clothing)

luvchocolate

The problem for us here is the allowances have changed and we do not have access to any information.
The only way now is to put everything down in you S.O.A and see what the examiner come back with.
I would hope they would go through this with you.
It was much easier to give advice on S.O.A in the past ...sadly now we have nothing to base it on.
I would speak to your examiner to go through it together.

HothHan

Thank you for your replies, I will let you know how I get on

Mollie_Guinness15

I have had experience of this in the last couple of weeks. I submitted the new IPOQ which showed no surplus and submitted it with bank statement and wageslips.
A few days later my OR called me, he said the IPOQ showed no surplus, but that their system indicated that there was a surplus, and can I explain where some of this difference may arise.
I mentioned that there are always unexpected expenses, and gave a couple of examples, he was happy with this and that was the end of it.
I got the impression that this new system was making life harder for them too!

richieduke

Does anyone know if the SOA format in the online Bankruptcy portal reflects the new SFS version (i.e. the reclassification of expenses sub-headings.etc) ?

Thanks