bankrupt oaps soa advice please

broaps

Hello again. I would like your opinion of our soa information. I have split the expenses 76/24% to match our income as the CAB suggested. My only income is state pension. Is it correct that this will be treated as a benefit and therefore not liable to any IPA?

Household Information[/b]
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 517
Partners monthly income after tax....... 1632
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2149

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 222
Management charge (leasehold property).. 0
Council tax............................. 37
Electricity............................. 9
Gas..................................... 9
Oil..................................... 0
Water rates............................. 6
Telephone (land line)................... 17
Mobile phone............................ 10
TV Licence.............................. 3
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 110
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 1
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 5
Total monthly expenses.................. 514


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
various........................50000.....0.........0
Total unsecured debts..........50000.....0.........-


Monthly Budget Summary
Total monthly income.................... 2,149
Expenses (including HP & secured debts). 514
Available for debt repayments........... 1,635
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,635

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -50,000
Net Assets.............................. -50,000

THis is my husbands soa. He has a state pension plus a couple of works pensions. He also owns a few shares in a private company he helped to set up and there will probably be someone in the company that will buy them for £5000.



Household Information[/b]
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1632
Partners monthly income after tax....... 517
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2149

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 703
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 55
Mobile phone............................ 15
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 347
Clothing................................ 25
Petrol/diesel........................... 60
Road tax................................ 14
Car Insurance........................... 31
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 13
Entertainment........................... 25
Holiday................................. 10
Emergency fund.......................... 10
podiatry................................ 10
stationery, postage..................... 6
Total monthly expenses.................. 1623


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 5000
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 5400

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
various........................50000.....0.........0
Total unsecured debts..........50000.....0.........-


Monthly Budget Summary
Total monthly income.................... 2,149
Expenses (including HP & secured debts). 1,623
Available for debt repayments........... 526
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 526

Personal Balance Sheet Summary
Total assets (things you own)........... 5,400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -50,000
Net Assets.............................. -44,600

Does it look from these as if we will have to pay any IPA? I hope someone can take a look as we are both nervous about the whole thing.

Thanks in advance.

National_Debtline

Hi broaps and welcome to MSE,

It can actually be harder to assess budget's in this way, and a joint budget may be simpler in the long run. Please be aware that if you are on a state pension only income, then you shouldn't have an IPA.

31.7.40 IPA or IPO should not be sought where bankrupt’s sole income comprises state benefits

(Amended March 2014)

An IPA or IPO should not be sought where the bankrupt's only source of income is state benefits. In the context of this chapter "state benefits” refers to all forms of income supplement and support provided by central or local government including, but not limited to: income support, job seekers allowance, disability living allowances, incapacity benefit, industrial injuries disablement, council tax benefit, housing benefit, state retirement benefit (state pension), child benefit and all forms of tax credit (child, working and pension).

In terms of the expenses, some may be deemed as high (possibly the shopping budget), but ultimately it is at the Official Receivers discretion. If you have more than £20 per month of surplus money then an IPA is possible for up to 3 years.

Please be aware that your partners shares/ money for the shares will be at risk in the bankruptcy as it is an asset and assets are at risk in bankruptcy. The car is unlikely to be an issue due to its value. Best of luck,

Laura
@natdebtline

broaps

We both understand that the shares will be lost. Our food bill is probably a bit higher than normal as I am coeliac and have to follow a gluten free diet. My husbands small loaf costs 85p while mine costs £2.30 for example. Also, the bankruptcy application form has spaces for laundry/dry cleaning and toiletries on it so I have added these into the Food section as there is nowhere else on the stoozing screen.

As we will be individually bankrupt I just assumed the Insolvency people wont accept a joint budget. Will they need to see a joint budget as well as an individual one?