Advice on Ipa

Janewilliams87

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

luvchocolate

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. 

Janewilliams87

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

luvchocolate

Can you also show debts and the value of your car please 

Janewilliams87

Cars is worth around 900
Debts are high 50k 
loans ccs etc
ive been paying token payment for the last 3 months or so

luvchocolate

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 

debt_doctor

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

Janewilliams87

Thank you for your replies.
Great advice on the soa.

mwarby

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) 

luvchocolate

How old are the children?