SOA - Statement of Affairs Help

Clouds88

Also if the car is worth £1500 you!!!8217;ll need to sell it anyway and get one under 1,000. I don!!!8217;t see why you wouldn!!!8217;t go bankrupt. They can!!!8217;t take an IPA from benefits but not sure on child maintenance. Someone might be able to advise soon. Even if you did get an IPA it will clear your debt in 3 years which is faster than any other route you could take on that income. Goodluck

927

Thank you Clouds88. Where I live is quite rural hence the car. Arguably I could get a bus to nursery and then walk a while. I completely understand the car may not be considered exempt. I think I’d read somewhere that if finding future work could be hindered cars might be allowed.

As for working I look each week at various sites and locally (most employment is either village or a good 15 miles away). However I still have to break even - regardless of where the money comes from I have to be able to pay rent and utilities and I obviously have to factor in childcare costs if I’m to earn enough to pay all bills, childcare and debts. It doesn’t balance either way.

I didn’t think I could dispose of any assets prior to bankruptcy anyway? Citizens advice have said I should just offer £1 token payments for a couple years to see if my situation improves. I’m 43 and pretty sure I’ll not earn enough to cover all costs and pay off £27k before I’m 70! Although any tips gratefully received!

debt_doctor

Hi,
The position of child maintenance as income for an IPA.....

Section (k) Maintenance payments

31.7.75 Maintenance payments received by the bankrupt

The bankrupt may be in receipt of maintenance payments paid by the Child Support Agency (CSA) under the Child Support Act 1991. Any funds paid to him/her in this way fall within the definition of income under the Insolvency Act 1986 Section 310(7) [note 7] and should be included in any calculation for an IPA/IPO. Funds devolve upon the bankrupt when they are paid to him/her by the CSA and therefore should be claimed at that time via an IPA/IPO where this occurs after bankruptcy. Any maintenance payment held as cash in hand or at bank at the date of the bankruptcy order constitutes a vesting asset and should be realised accordingly, this includes arrears of maintenance payments held at the date of bankruptcy. See paragraph 31.7.64 where the arrears are paid after the date of bankruptcy.

So, The maintenance payment does count as income that an IPA could be taken from - but, only if you have overall spare income more than that needed for your reasonable domestic needs and that is calculated by using the Standard Financial Statement (SFS).

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With the car, the guideline figure is about £1000, but a car of £1500 may be able to be kept, they might ask you to raise (from friends / family) £200/£300 to keep the car.
Of course this all assumes that you can demonstrate a NEED for the car, and at the moment you are not working and so do not need child care. You can argue a need for a car other than work or child care (perhaps long trips to school etc) but it is risky and different examiners make different decisions.

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With your SOA, it has already been said that it needs to reflect your position NOW and then can be adjusted later if you start work. Most of your expenses are perfectly reasonable.
I note your comments in your PM to me from your local Citizens Advice about your SOA - and I'm sad to say that my view is that they are wrong on every count.

I would put £100pm more on to your groceries, and I would put £60pm in to entertainment / leisure (replacing the child care effectively).

If your car was dis-allowed - what would your public transport costs be? Bus, taxi, other?

Please get back to me/us with any further comments on here.

DD

927

Thank you so much.

Re child maintenance - this is not paid into my bank. It’s cash normally. And isn’t always on time/regular.

Re car - my son goes to nursery as part of the 15 hours funded so I don’t pay for that currently. I (wrongly) thought most children were encouraged to attend nursery prior to school. I fully intend to return to work part time once he has started school and that would be hindered if I didn’t have a car. There are few jobs in the rural town I live in and without transport I’d have to rely on buses - few and far between where I live. Which would be costly and in turn mean I would need childcare in the form of before and after school clubs/childminder. Another poster said take the poor condition value of the car from Parker’s and use that (it does need two tyres soon, the electrics don’t work, ding in bumper and chips in windscreen etc) and this would be £840. I know getting rid of assets at less than market value is a no no but if I sell it to family for market value then can I continue to use it?

Should I suppose that my SFS should balance with my income? In that if it exceeded it I’d be penalised? Groceries are at £440 averaged over12 months but I assumed that would be frowned upon and so I should put a lower figure in.

It’s so confusing to know what is right.

debt_doctor

Nothing wrong with groceries at £440 pm.
Also nothing wrong with a negative SFS, so long as you qualify it by saying "I am reducing my housekeeping costs below a reasonable level to make this budget balance".

DD

927

Comments gratefully received please!

I’ve redone my SOA and moved child swimming lessons into entertainment. Upped groceries to reflect what is actually being spent currently (or averaged over 12 months although I think some toys/presents are included in this amount).

I haven’t received maintenance this month so my parents will help again. Do I still include this in my calculations? My ex who lives some 90 miles away is now requesting I share the travel to his. This is a 180 mike round trip for me and would cost £55-£60 twice a month by unlicensed transport. I’d end up paying more a month on public transport than using the car.

Parents have offered to buy car so I have fees for bankruptcy and I can then still use it. Is this normally agreeable to the OR. Do I have to inform them this is what I’ll be doing as obviously some of my budget will still have to be used for fuel/insurance/car tax? I’ve noted comments regarding me not needing the car although I’d still need public transport right?

ont=courier new]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1449
Other income............................ 400
Total monthly income.................... 1849

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 35
Gas..................................... 45
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 24
TV Licence.............................. 12.37
Satellite/Cable TV...................... 10
Internet Services....................... 25
Groceries etc. ......................... 440
Clothing................................ 45
Petrol/diesel........................... 90
Road tax................................ 17.5
Car Insurance........................... 38
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 20
Entertainment........................... 60
Holiday................................. 20
Emergency fund.......................... 30
Total monthly expenses.................. 1881.87

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 840
Other assets............................ 0
Total Assets............................ 840

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard cc.................9600......257.......19.9
MBNA cc........................7572......103.2.....19.9
Halifax cc.....................6827......94.69.....19.9
Virgin cc......................3551......35.71.....19.9