SOA advice please

peterparker12

Hi,
Under advice I have posted my SOA after a long process and it seems to be in line with a lot of previous posters. Just wondered if it looked ok to the experts on here before I press the BUTTON...thanks

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 0

Monthly Income Details[/b]

Monthly income after tax................ 1893

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0

Total monthly income.................... 1893

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 525

Management charge (leasehold property).. 0

Council tax............................. 110

Electricity............................. 75

Gas..................................... 50

Oil..................................... 0

Water rates............................. 35

Telephone (land line)................... 15

Mobile phone............................ 20

TV Licence.............................. 13

Satellite/Cable TV...................... 0

Internet Services....................... 32

Groceries etc. ......................... 280

Clothing................................ 30

Petrol/diesel........................... 250    High I know, but my daily commute to work is 80mile round trip.

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 15   (I use a company car but I pay for small things like car wash and valet to look professional, wiper fluid etc)

Car parking............................. 10

Other travel............................ 10

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 45     I need physio once a month on my leg after surgery and not available NHS really

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 15

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 20

Haircuts................................ 17

Entertainment........................... 30

Holiday................................. 20

Emergency fund.......................... 15

Total monthly expenses.................. 1632

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 0

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Loan...........................48000.....1000......12

Credit Card....................5000......150.......22[b]

Total unsecured debts..........53000.....1150......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,893

Expenses (including HP & secured debts). 1,632

Available for debt repayments........... 261

Monthly UNsecured debt repayments....... 1,150[b]

Amount short for making debt repayments. -889[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -53,000[b]

Net Assets.............................. -53,000[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

mwarby

to me your groceries are perhaps a little on high side (although maybe I'm out of date, I'd say no more than 250 for one)

You maybe asked whether there is a more economical way of getting to/from work

your landline and internet are a tad high at 47, but will probably be fine (esp if actual bill)

what's other travel ? it might seem a bit rich after claiming for high fuel and washing\valeting

entertainment and holiday are both somewhat up to the OR as I understand it, I think they are more generous when kids are involved - I'd leave it in but just no its not guaranteed

medical - expect to be asked why so high, and also why you can't get pyhsio on NHS(the default will be if you really need it the NHS will provide free) although given its only perhaps 25 more than normal I doubt they will fight you too much

at £261 available for debt repayments you will of course get an IPA, I wouldn't be surprised if it was somewhere between £250 and £350(although I'd consider fighting it if was higher than 300). The IPA is ultimately a voluntary agreement, if you don't accept it can go to court, where the court will decide whats reasonable expenses. I hope yiu are aware that the IPA is for 3 years and will change as your income and expenditure change over that period, something you will need to keep them informed of.

Most dislike IPAs for obvious reasons but worth bearing in mind your wiping out £53k of debt for £10-15k over 3 years, this compares well to a DMP which would easily take 10 years or an IVA which would take 5 years and they aren't as generous on expenditure typically, many IVA firms would dimiss present and holidays completely (on the unwritten understanding that what you can save in other areas, eg being savvy at supermarket could be spent on such things)

peterparker12

Thank you, no surprises there. Great to get some advice.

Unfortunately I work as an engineer now so have to drive all my tools and gear to the depot each morning (40miles away) before working onsite and then driving back after (40miles again). I am given a company car but I have to pay the petrol to get to work as its classed as a personal journey. 

The food I could drop, but sometimes if im working out on site unexpectedly I will spend money on food at work. 

The other travel is once a month I get the train to Manchester to see family as its cheaper than taking the car.

Fighter1986

I'm in a similar position, 82 mile daily round trip to work, also an engineer, I was allowed more for fuel than that and various other expenses; you won't have any problem with the £250 you quoted if you can explain it away.

It might be worth seeing if there's any more allowable expenses you can pad out your SOA with expenses wise to reduce the likelihood of being given an IPA. 

RE: how much the IPA will be for, it won't be for all your disposable income if you do get one, more like 33-66% of your disposable income. 

mwarby

Fighter1986 said:

RE: how much the IPA will be for, it won't be for all your disposable income if you do get one, more like 33-66% of your disposable income. 

I'm not sure what your definition of disposable income is, but that statement could be misleading. I would hate for someone to pick bankruptcy believing their IPA was likely to be much lower than it turns out.

The IPA the OR would seek is for 100% of the difference between your income and your agreed expenditure.

Of course if the OP has missed any expenses he can reduce the IPA, but nothing jumped out at me. I of course hope the OP will get a low IPA but based on the budget he gave, his difference between income and expense in £261 and that what the OR would seek (unless they adjust the expenses up or down to meet the reasonable domestic needs). If we apply your calculation it would be £86 to £172 which I fear is unrealistic(especially at the 33% end)

peterparker12

Thanks fighter, can you tell me where the 33 and 66% comes from? Not seen that anywhere. I don't think I can justify not paying anything back as I def have disposable income. 

One question I do have is the £250 is exactly what I spend getting to work, can I include trips to supermarket and the like, probably another 30 a month?

luvchocolate

We tend to work on proven facts on this board. It's unfair to give false hope. An IPA will usually take 100% of surplus income over £20 but the £20 is taken..hope that makes sense. 
Never heard of the 33%or 66%.
Re your fuel you can try if you can prove your work mileage it's worth a shot. 
My examiner was very helpful and we've had good reports recently 

mwarby

I don’t see the £30 extra fuel for shopping as an issue. All you need to be able to do is justify why you think it’s a expense required to support a reasonable domestic need. It’s fine IMHO to say I do x miles to and from work (and I can’t use public transport due to need to carry tools) a month and y miles for shopping etc which costs me £z in fuel. 

It’s just a case of being able to explain your figures if asked, in case the OR thinks your chancing your arm

Re the 33-66% from the technical manual (https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part7/part2/part_2.htm)
’ Following an assessment of the real disposable income (the income remaining after all expenditure necessary to finance the reasonable domestic needs of the bankrupt and his/her family has been taken into account,  see paragraph 31.7.23), where an assessment for a new IPA is made on or after 1 December 2010 (regardless of the date of the bankruptcy order) and the bankrupt has surplus income of £20 or more,  the full amount of this surplus income should be sought by way of monthly payments under an IPA’

It’s worth noting that the manual isn’t really intended for the likes of us, but it can be interesting and gives us at least an idea as to the rules the OR uses

There are reports here of some ORs adding a little to the bankrupts proposed expenses if they feel they are too low which is nice(the object of bankruptcy is a fresh start, the OR wants you to have enough to live on without struggling). But best to assume this won’t happen, if you get £20 or so less IPA it’s a bonus

peterparker12

Thanks, yeah the 33_66 is fake news 😊

peterparker12

So, I'm saving my BR fee but should I carry on on my token payment plan until I've got a small emergency fund say £300 and then go for BR. My take a couple more months but might be essential in the long run. Or save a bit more for 12 months and then declare. I know I'm putting off the enevitable but feel it may help in the long run to have a bit of a fund

mwarby

If your sure your going bankrupt I wouldn’t pay anything(unless cancelling the token payment risked eviction)

Id go bankrupt as soon as possible after payday and rent day. I wouldn’t be saving an emergency fund just now(not 300 anyway), as the OR may want it

what emergency are you worried about ? Car breaks it’s not yours to fix (as I understand it work would cover it) House starts to fall down landlords problem etc