Bankruptcy IPA when there is an income deficit

MoominTroll

Thank you, I will complete the SOA as soon as I get chance.

MoominTroll

I should have mentioned, my IPA case manager has recently assessed that I cannot afford to pay the tax I'm saving, so it is now only bonuses on top of my wage that I have to pay. The agreement is due to be reviewed at the end of the tax year.

MoominTroll

Monthly Income Details[/b]
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 89.27
Other income............................ 0
Total monthly income.................... 1389.27
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 28
Gas..................................... 0
Oil..................................... 0
Water rates............................. 11
Telephone (land line)................... 0
Mobile phone............................ 77
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 780
Clothing................................ 25
Petrol/diesel........................... 173
Road tax................................ 3
Car Insurance........................... 48
Car maintenance (including MOT)......... 45
Car parking............................. 44
Other travel............................ 43
Childcare/nursery....................... 0
Other child related expenses............ 129.58
Medical (prescriptions, dentist etc).... 52
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 27
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 40
Holiday................................. 50
Emergency fund.......................... 0
Meals at work........................... 22
Toiletries.............................. 60
Total monthly expenses.................. 2117.58

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
Car Loan.......................1500......108.......0
Total unsecured debts..........1500......108.......-

Monthly Budget Summary
Total monthly income.................... 1,389.27
Expenses (including HP & secured debts). 2,117.58
Available for debt repayments........... -728.31
Monthly UNsecured debt repayments....... 108
Amount short for making debt repayments. -836.31
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,500
Net Assets.............................. -1,500

Annie35

Ok, whilst a BR soa is different to a money saving soa, your groceries are very high. You could try cut that down to £500?

Can I ask what the other child related expenses are?

Are you getting all you're entitled to? Tax credits/childcare hours etc? https://www.entitledto.co.uk is good to double check this.

You've been allowed to keep your car loan? How long have you got left on that to pay?

Really you need to think about changes to make your life sustainable now that there is no longer credit to fill that -£600 a month. Difficult but so much better in the long run x

TheGardener

Hi - how many people in the household? Is there anyone sharing the household expenses with you?

Although the BR will allow reasonable expenditure - it doesn't mean you can have things in the budget you can't afford due to your income. You will need to try and make your budget balance - look again at toiletries, holidays, entertainment and certainly look again at groceries!
No Council Tax from 1st of April?
Travel costs are high - petrol plus 'other transport'?

You have a very low income - are there any additional benefits you are not claiming?

Clouds88

I know the whole point of a budget in bankruptcy is so you can stick to it but your SOA isn’t sustainable going forward you’ll end up in debt again.

Groceries- how many of you? Do you look online for inspiration, bulk buying and freezing some food will help to bring the cost down. Not necessarily to make you have a posivite balance after outgoings but as a way to save money going forward. I look on Pinterest for inspiration and good old google.

You say your youngest is 18? So surely that child and any older children work, if they live with you are you charging them rent? Can they contribute? Again, a way of saving this money so you can buy things you need or save for a holiday.

Basically I’m trying my hardest during my bankruptcy to save money where ever possible without earning more money.

MoominTroll

I posted the SOA as requested previously, I'm not really asking how to save money - no offence, I appreciate all comments. The SOA doesn't include my bonuses, which mean I am able to make up the deficit in income and break even.
My question is a) the validity of being made to pay an IPA when there is no surplus income. b) being made to give the OR my bonus money when I need it to supplement my income.

TheGardener

MoominTroll wrote: »

My question is a) the validity of being made to pay an IPA when there is no surplus income. b) being made to give the OR my bonus money when I need it to supplement my income.

Sorry, I thought you only had an NT IPA? I wasn't suggesting 'savings' I was suggesting figures that need adjusting to have a meaningful budget.

Still it would help if we could understand how many children are dependant on you financially. And to be honest - unless there are more than 4, the groceries budget isn't going to get past the OR anyway.
Just because that's what you spend, doesn't mean the OR will accept the figures. If you have a more realistic budget and include the bonuses averaged out we will have a better overall picture, we can help with making sure you make best use of the SoA and a more reasonable budget is more likely to pass the OR's scrutiny. As it is we don't have enough information to assist.

Clouds88

I don’t take offence that is fine. I would be devistated if I was wasting more than half of my hard earned income on food though!

MoominTroll

I did have an NT IPA only (as far as I am aware. After applying the OR wrote to me, told me I had been put on a NT tax code and to pay a regular amount each month, and to submit my payslips. Then my bonus/commission came into question and my case was put under review. After reviewing I was called my someone at the OR office and told to pay all commission/bonuses to them straight away moving forward. I have nothing in writing to this effect, I would have expected to receive a confirmation letter.
Regarding my groceries, I submitted my application with £650 per month and this wasn't questioned, so can I revert to that? I didn't put any allowances for holidays either in my application but did put £40 for entertainment and £60 for toiletries which was accepted. I have 2 children, one in college full time and one at Uni who is back during the holidays.. I still have to feed him and he's back for over 4 months in summer, he's not completely independent. FYI my circumstances have changed since applying, I have moved to cheaper accommodation and my council tax and some bills are included in my rent. My electricity bill is an underpayment from my previous address. My travel expenses are high as I pay £20 per week for parking at work, live further away from work and spend a lot on petrol. Other travel costs are school bus costs which are also very high.
Regarding my bonus - during this financial year I have had some payments which I have paid tax on until the NT code was applied, the rest has not been taxed. Shall I work this out as if:
1) I had been taxed on all payments during the financial year
2) All payments before tax
3) A mixture of both/what I have actually received
and then take an average from the last financial year (including next month as I know what my wage will be)?