I & E question

Peter_Pan

Hi

Well the court date is set for Tuesday and i'm ploughing my way through the forms:eek: , i have a couple of questions re the I & E.

1.OH will obviously put down his earnings as its his form i'm completing, do i put down my contribution down in parts 6.6 and 6.7 as being CTC, WFTC (although its based on OH earnings its payable in my name) and CHB?, we pool everything and pay what needs to be paid.

2.Also in the I & E does the OR take into account the CHB and CTC in his calculations as income coming in?

Thanks in advance

Peter_Pan

I have just been doing some investigating myself on another forum and is it true that the OR won't take into account CHB or CTC when working out surplus for an IPA , if thats the case we definately won't have an IPA imposed and i can stop worrying about tweaking my I & E

Can someone confirm please

Peter_Pan

Can i bump this up please, i want to get OH I & e sorted today (one less thing to think about) if CHB and CTC won't be taken into account for an IPA i won't mind showing a suplus of £70 which it is at the moment with CHB and CTC.

fermi

If a payment goes into your account and is then contributed towards household costs, I would put that down in the section for your contribution.

If the surplus is £70 (or maybe less ) then an IPA wouldn't be appropriate or seekable by the OR.

Only benefits intended for the "benefit" of a child are 100% exempt from consideration. This always means "child benefit", and many OR's stretch this to CTC as well. Other benefits can be considered as income if there is sufficient non benefit related income. The OR's guidance is says:

31.7.9 State benefits

An IPA should not be sought where the bankrupt's only or main source of income is state benefit payments without any other significant source of income [note 3]. This applies even in the rare circumstances where the official receiver's analysis of the bankrupt's income and expenditure discovers sufficient surplus for an IPA arising as a result of the income received by the bankrupt which either solely or chiefly comprises state benefits. The official receiver should consider that it is always open to the bankrupt who wishes to contribute, to make voluntary payments. If the bankrupt was minded to contribute on a voluntary basis, having been informed that their income appeared to be sufficient to produce a surplus taking in to account their reasonable domestic needs, a voluntary agreement could be incorporated into an IPA, but it would have to be clearly noted that no enforcement action would be taken if the bankrupt failed to make agreed voluntary repayments.

This does not mean that the official receiver must exclude all benefit payments received by the bankrupt when calculating available income for an IPA. Theperson making the calculation (usually the examiner) should first consider whether there is income paid to the bankrupt not comprising state benefit . If this is the case, an IPA may be a possibility, and any calculation of income should include all available income, including state benefits which are paid to an individual for the general benefit of that individual and their family. The notable exceptions to this rule when dealing with state benefits is child benefit. The High Court has stated as a matter of public policy that child benefit and similar benefits should not be included in the statement of income when applying for an IPO and there is no reason why this point should not be extended to cover IPAs. Whilst it is acknowledged that in the figures for expenditure there may be outgoings for the benefit of the children, at least to the value of the child benefit received, to ensure that there is no risk of them being deprived of it, child benefit should not be included in IPA assessments. The Department of Work and Pensions website provides useful information regarding allowances and benefits currently in force and can be accessed at http://www.dwp.gov.uk/

Where the bankrupt is in receipt of benefits and other sources of income, the total income should be established (see other income sources at paragraph 31.7.7) and the bankrupt's reasonable expenses deducted (see paragraph 31.7.19). An assessment can then be made as to whether the bankrupt is in receipt of income surplus to his/her reasonable domestic needs. If there is a surplus of income, this surplus should be less than or equal to income from the source other than benefits in order for an IPA to be sought. It should be remembered that whilst the bankrupt's total income including state benefits should be included in the calculation of surplus income, it is the income from sources other than the benefit(s) which is providing the payments under the IPA/IPO, the surplus income from which an IPA is sought should not be comprised of state benefit.

You need to read the above through about half a dozen times before you even start to get the gist.:rolleyes:

Peter_Pan

Thanks again Fermi
Will read through it a few times:D