Remaining money after bills

Siobhan7

I was declared Bankrupt in August last year and when my OR and myself went through my income and expenditure, it turns out I literally earn enough for my bills and just about enough for food, no money left over for an IPA.

It’s coming to the end of my mobile phone contract and as it’s in my nans name, she’s happy for me to carry it on but I might go with the sim only deal and I’ll cut the cost of my contract by almost 3/4 so I’ll have almost £30 left over each month.

Should I call the OR and declare this? I need to save money each month because I don’t really live near where I work and it’s costing me £250+ a month in petrol (there’s no public transport I can get - already looked) and I need to save to move closer or I’m going to have to look for another job. I like this job and the benefits are great (great pension, private dental and healthcare etc) so I really don’t want to leave!)

Any ideas? I just want to be completely honest. I’ve heard they monitor your every spend and your bank accounts even years after you’ve been discharged. I was hoping that if I moved closer to work I could put that petrol money in a savings account so I can make myself financially secure so I’m not in this mess again in the future!

TheGardener

You only need to tell the OR if you have a pay rise or pay cut - so a change to your actual income. Savings made within the initial SOA budget such as spending less on food or transport because you buy frugal products or walk to work a few days a week is fine (as examples). If you can make a saving on the phone and put it towards another domestic essential expense where you are short then that is fine and you don't need to tell the OR.
The OR rarely checks peoples actual budgets unless there is a BRO/BRU.

Siobhan7

Thank you - sorry but i can't think what BRO/BRU means

Minkym00

I disagree with The Gardener - they can reassess if you have surplus income at any time during your bankruptcy. It’s an assessment of both your income and expenditure so if either of these change they can implement an IPA.

If you tell them and they implement an IPA then you’ll have to pay it for 3 years. You’re nearly there, don’t rock the boat now as it’s actually highly unlikely they will check up in you this late on.

The OR can only request income v expenditure and bank statement whilst they are trustee so they definitely won’t be checking up on you years later.

Siobhan7

Thank you so just for the next few months I need to keep my phone bill as is?

luvchocolate

I am with the Gardener on this one it is fine to make savings within your budget and use it to help out in areas where you might be struggling.

sourcrates

Hi,


If you choose to make savings in your budget, that is up to you, and you do not have to inform your OR.


If that were the case, everytime morrisons had an offer on, you`d have to disclose the difference to the OR, its simply not workable, as the Gardner says, you only need inform the OR if your income rises or falls.


Your accounts are not normally scrutanised, you are normally left to get on with it, although random checks are always possible, but again, only on your income.

Siobhan7

Thanks all. I just really want to have money aside for emergencies and also i want to make sure my finances are in a decent shape going forward. I certainly never want to be in this situation ever again!

Minkym00

Making a few savings on your budget here and there isn’t going to raise a concern.

But the reason I disagreed with The Gardener is because they said you only inform the OR if your income changes - this is the not correct advice as you are obliged to tell them if your expenses significantly change.

Siobhan7

Yeah I understand, like if i were to be able to move closer to work i will have around £200 maybe more left over each month so I would have to declare that. Would I have to do this after I am discharged in August?

Minkym00

No. The OR can only request this whilst they are your trustee. After you’re discharged you’re home and dry.