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Advice on Ipa

9 replies 171 views
Janewilliams87Janewilliams87 Forumite
4 posts
First Post
MoneySaving Newbie
Good morning,
I am fairly certain i will be going down the bankruptcy route  with debts of over 50k bu would like to know the likelihood of ipa
I would like to avoided this if possible so i can properly move on and have a  fresh start after 12months.
Are they strict with expenditure.
Really  nervous About the whole process.
Any advice/help would be really great.
Thank you x

Replies

  • luvchocolateluvchocolate Forumite
    2.4K posts
    Eighth Anniversary 1,000 Posts Name Dropper Home Insurance Hacker!
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    An IPA can be set up if you have £20 or more surplus per month..100% is taken.

    That's why it's important to get your SOA right...remember everything you spend. There are trigger amounts for each section but allowances will give you a decent standard of living. 

    These triggers are not public knowledge but some of our posters deal with them on a regular basis. 

    Put your SOA up and we can take a look. 
  • Janewilliams87Janewilliams87 Forumite
    4 posts
    First Post
    MoneySaving Newbie
    Hiya
    I gave it a go
    Number of adults in household........... 1
    Number of children in household......... 2
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 1400
    Partners monthly income after tax....... 0
    Benefits................................ 720
    Other income............................ 0[b]
    Total monthly income.................... 2120[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 750
    Management charge (leasehold property).. 0
    Council tax............................. 89
    Electricity............................. 70
    Gas..................................... 50
    Oil..................................... 0
    Water rates............................. 47
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 13
    Satellite/Cable TV...................... 30
    Internet Services....................... 30
    Groceries etc. ......................... 450
    Clothing................................ 40
    Petrol/diesel........................... 120
    Road tax................................ 15
    Car Insurance........................... 102
    Car maintenance (including MOT)......... 60
    Car parking............................. 6
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 40
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 13
    Life assurance ......................... 15
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 25
    Entertainment........................... 40
    Holiday................................. 30
    Emergency fund.......................... 30[b]
    Total monthly expenses.................. 2145[/b

  • luvchocolateluvchocolate Forumite
    2.4K posts
    Eighth Anniversary 1,000 Posts Name Dropper Home Insurance Hacker!
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    Can you also show debts and the value of your car please 
  • Janewilliams87Janewilliams87 Forumite
    4 posts
    First Post
    MoneySaving Newbie
    Cars is worth around 900
    Debts are high 50k 
    loans ccs etc
    ive been paying token payment for the last 3 months or so
  • luvchocolateluvchocolate Forumite
    2.4K posts
    Eighth Anniversary 1,000 Posts Name Dropper Home Insurance Hacker!
    ✭✭✭✭
    Providing you can prove a need not just a want for your car over using public transport then the running costs would be acceptable...although your insurance is high. 
    The value of your car shouldn't be a problem. 

    Life assurance would be looked at although usually able to buy back. 

    I'm not an expert on SOA and we have some incredible posters who are...but nothing else jumps out. 

    Hopefully someone else will be along soon 
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • debt_doctordebt_doctor Forumite
    4.6K posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    Hi,
    Looks good to me, please take note what Luv chocolate said about the car.
    You won't be liable for any Council Tax until April 2021, so I would take that out and stick £50 on groceries and £50 on leisure.  .Your budget will be slightly negative - that's ok, if challenged just say they are my reasonable needs but I may have to reduce the leisure costs to make my budget balance. Same with budgeting for council tax for next year.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • Janewilliams87Janewilliams87 Forumite
    4 posts
    First Post
    MoneySaving Newbie
    Thank you for your replies.
    Great advice on the soa.
  • mwarbymwarby Forumite
    2K posts
    Part of the Furniture 1,000 Posts Name Dropper
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    I’d suggest you could also add 10-20 on clothes (kids get through clothes, shoes, uniform etc)

    You could probably add another 10-20 to medical. A dental checkup and filling could really eat into your current £120 a year, that’s before thinking of kids and incidental medicines such as cough mixtures etc

    It probably makes no difference to what debt doctor has said, but perhaps less open to challenge (clothes for kids, vs say saving for holiday) 
  • luvchocolateluvchocolate Forumite
    2.4K posts
    Eighth Anniversary 1,000 Posts Name Dropper Home Insurance Hacker!
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    How old are the children?
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