We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Self-Employed IPA - Terrified as really need a fresh start
Options

Unaboo
Posts: 1 Newbie
I declared myself bankrupt on 26 June after a deeply traumatic family period that caused a failed business. My OR has asked me and my husband (who's not BR) to provide three months of personal and business accounts to show our spending and surplus. I'm terrified as my business has just collapsed due to Covid but due to my final invoice being paid and the SEISS payments going in, I will have a surplus of at least a few hundred at the end of that time, but it is all allocated for household expenditure over the next few months, as my husband is also self-employed and his income comes in approximately quarterly to bi-annually, so we're always budgeting over a six month period at least, never one or even three months. It will also be the last income I have, other than Tax Credits, until the Gazette advert is removed from the internet, as my business is extremely sensitive to financial difficulties (although not one where I have to declare bankruptcy) and as I have an unusual business and personal name, it comes up the moment clients search me, so it's effectively killed any hope I had of rebuilding post-Covid.
So - wise people - please help as I can't sleep for worrying about an IPA, which would cripple me if it was set at the income shown over the next three months. I will of course tell my OR my work has dried up, but I'm petrified she'll set an IPA at the current level then set it to zero.
Once I'm solely reliant on Child Tax Credits (end August onwards), my income will be £236.03 from the Child Tax Credits and £91.22 from Child Benefit. The Working Tax Credit element of our benefits is specifically given to my husband on the award letter - would the OR regard this as something she could take into consideration, or is it his income? His WTC is £224.33 and his income last year was £8.5k (we both work part-time and share childcare). My income for 2019-20 was £5.5k, the year before that £2.5k.
I'm really worried about how much I can spend - I drew up my SOA with a debt charity, who said "what would you like to spend?" and got me to submit ridiculous figures, including £700 for food and £179 p.m. for leisure, so I feel the OR has given me a second chance by asking for a spreadsheet of our income, as those figures were a distant dream anyway. It's me, my husband, our two-year old and two dogs. Do the figures below look okay? Are we allowed any leisure budget? And/or a holiday budget? I can get my psychologist and my husband's (yes, it's been that much fun recently), to write a letter in support if necessary. I have a two-year old - am I allowed to put money aside for activities for him, or is that within leisure?
Rent: 0 (we live with my mum)
Council Tax: £173.50
Water: 58.40
Gas/Electric: 90.00
Home Insurance: 60.00
TV licence: 13.12
Food: 480.00 (includes lunch at work allowance for two adults as we both eat lunch at home/take lunch to work every day/my husband has a very physical job/I have life threatening allergies).
Fuel: £80-£120 (we live in a very rural area)
Car Tax: £27.50
Car Insurance: £24.00
Car Maintenance: £25.00
Household Maintenance: £40.00
Leisure: £35.00
Newspapers/Stationery: £10.00
Dry Cleaning: £10.00
Pets: £35
Clothing: £50.00
Contingency: £30.00
Thank you for helping a very frightened and stressed person. I've been reading the forum and you're life savers.
So - wise people - please help as I can't sleep for worrying about an IPA, which would cripple me if it was set at the income shown over the next three months. I will of course tell my OR my work has dried up, but I'm petrified she'll set an IPA at the current level then set it to zero.
Once I'm solely reliant on Child Tax Credits (end August onwards), my income will be £236.03 from the Child Tax Credits and £91.22 from Child Benefit. The Working Tax Credit element of our benefits is specifically given to my husband on the award letter - would the OR regard this as something she could take into consideration, or is it his income? His WTC is £224.33 and his income last year was £8.5k (we both work part-time and share childcare). My income for 2019-20 was £5.5k, the year before that £2.5k.
I'm really worried about how much I can spend - I drew up my SOA with a debt charity, who said "what would you like to spend?" and got me to submit ridiculous figures, including £700 for food and £179 p.m. for leisure, so I feel the OR has given me a second chance by asking for a spreadsheet of our income, as those figures were a distant dream anyway. It's me, my husband, our two-year old and two dogs. Do the figures below look okay? Are we allowed any leisure budget? And/or a holiday budget? I can get my psychologist and my husband's (yes, it's been that much fun recently), to write a letter in support if necessary. I have a two-year old - am I allowed to put money aside for activities for him, or is that within leisure?
Rent: 0 (we live with my mum)
Council Tax: £173.50
Water: 58.40
Gas/Electric: 90.00
Home Insurance: 60.00
TV licence: 13.12
Food: 480.00 (includes lunch at work allowance for two adults as we both eat lunch at home/take lunch to work every day/my husband has a very physical job/I have life threatening allergies).
Fuel: £80-£120 (we live in a very rural area)
Car Tax: £27.50
Car Insurance: £24.00
Car Maintenance: £25.00
Household Maintenance: £40.00
Leisure: £35.00
Newspapers/Stationery: £10.00
Dry Cleaning: £10.00
Pets: £35
Clothing: £50.00
Contingency: £30.00
Thank you for helping a very frightened and stressed person. I've been reading the forum and you're life savers.
0
Comments
-
Budget correctly, you must pay something to mum for rent, there is allowence for rent, so you should use it.Same goes for all other basics, there is a standard allowence for everything.Definetly overbudget, you never know when you will need it, an emergency fund is also essential, if the OR dosen`t like it, they will tell you so and question it.Anything over £20 disposable income will incur an IPA, its quite a simpe matter to make your budget balance with less than about £5 quid remaining.You must look after yourself, as no one else will.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1
-
If I’m understanding you correctly I don’t think you have anything to worry about. The OR won’t set up an IPA when you are on benefits only and can only do so during your bankruptcy period anyway. So, given that you are saying you are not going to have any income until after discharge then you’ll be fine. in England and Wales OR’s don’t set IPAs at £0, that’s in Scotland only.
1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards