Calling all knowledgeable peeps - SOA - IPA possibility? Help? 27 August 2020 at 10:25PM in Bankruptcy & living with it 11 replies 531 views

adam033

I'm not sure if this is the right part of the forum, but here goes, here is my SOA. As I'm sure many have been, I'm scared to death of being put on an IPA. I suffer from bad mental health and I'm not sure if I could ever live with a 3 year IPA hanging over me, knowing that every single bit of money is to be taken off me. Don't get me wrong I'm hardly wanting to have lots of money - otherwise I wouldn't be in debt to my eyeballs, but if I'm to be truly honest and transparent I'd rather just give up my dream job and be jobless for a year to avoid an IPA. At least after a year I can go back to good money management and actually save and try and start off on the right foot what I rightly earn, minus outgoings.

Anyway, here is my SOA. The worst thing in the world for me would be to submit an SOA and then it be put to scrutiny and the OR end up finding more money so I can go on an IPA. That would really set off my mental health and that's not good. I just don't think I could cope with it. I'm sure others feel the pain. So please can the powers at be on the forum scrutinise this so I can submit an accurate SOA and not have holes ripped in it. At the end of the day, if my income is deemed too high then it is what it is. But at least I can get things right and submit something that's accurate and doesn't look like I'm taking the mickey.

So, a few things to help. We have a newborn just a few months old. I live with my partner, but she's on maternity pay. I assume she will be expected to contribute towards the cost of the rent and outgoings. I've split the utility bills down half way which puts a £200 contribution from her into the mix. But being on maternity and having her own bills including CCJs to pay for, one must appreciate she can't go fully halves with everything as it would put her at risk of insolvency too. So the rent is to be paid all by me. I haven't split the rent. Unless of course you think the OR won't care about the effects on my partner and will expect the rent and bills to be 50/50 regardless.

My wages recently over the past 3 months have been higher at around 1800 but this is due to bonuses (or shall I work refer a friend awards that I have worked for) I have never bothered with these previously but because I now see the benefit in trying to refer friends I've been working hard to gain from it. Of course, this would only come out by showing pay slips but even so, would they take this into account despite my wages for years prior to that averaging 1650 ish (sometimes 1500 odd).

Does anything seem excessive or likely to be questioned? £10 for Satellite TV? £20 for clothing?

The £32 for other child expenses is half a day each week in nursery (totalling just 2 days per month). Just to give the baby a feel of the outside world and social interaction.

Pet insurance - I hope this is okay? £15 emergency fund - I hope this is okay? Feel free to be critical even if you have to PM me. If anyone can help. Please tell me where you think I'm being extravagant where I can be realistic about it so I don't get a shock when it is submitted to the OR.

I'm currently paying a lot towards bills and even CCJ's and enforcement CCJ's etc but I've not included them as I know they would stop when I am made bankrupt as the bankruptcy would supersede these (all from credit card debts) - please feel free to tell me if I'm wrong.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 1655
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 1655[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 26
Gas..................................... 23
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 0
Mobile phone............................ 32
TV Licence.............................. 12
Satellite/Cable TV...................... 10
Internet Services....................... 0
Groceries etc. ......................... 310
Clothing................................ 20
Petrol/diesel........................... 90
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 19
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 32
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 18
Buildings insurance..................... 0
Contents insurance...................... 43
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 15[b]
Total monthly expenses.................. 1640[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
(Unnamed debt).................30000.....0.........0[b]
Total unsecured debts..........30000.....0.........-  [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,655
Expenses (including HP & secured debts). 1,640
Available for debt repayments........... 15
Monthly UNsecured debt repayments....... 0[b]
Amount left after debt repayments....... 15[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,000[b]
Net Assets.............................. -30,000[/b]

[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

sourcrates

You only get an IPA if you have over £20 disposable income.

fatbelly

Your spends on groceries and clothes are too low for three people.

I'd start at £340 and £65 respectively.

You have nothing for road tax/insurance

I'd also put at least 10 for Christmas/birthdays

warby68

The contents insurance looks high, not impossible, but just checking that one isn't a mistake.
The experts have posted above me so take notice of them but that number just stuck out a bit 

JCS1

So is the rent fully paid by you, and then you have split the rest of the figures?  it might be easier to show your partner's contribution to household expenses (so after their own debt repayments) and then the full costs.

adam033

sourcrates said:

You only get an IPA if you have over £20 disposable income.

I know, but the OR can quite happily revise the SOA that I submit can he not? Which means that if they decide to critique it (if I haven’t been realistic with my figures) then all of a sudden £15 left over could end up being more which would mean an IPA.

The OR could also refuse to accept the fact that my partner doesn’t contribute to rent and demand a 50:50 split all throughout, could he not? This would mean I have £425 further disposable funds and would certainly mean an IPA.

adam033

fatbelly said:

Your spends on groceries and clothes are too low for three people.

I'd start at £340 and £65 respectively.

You have nothing for road tax/insurance

I'd also put at least 10 for Christmas/birthdays

Thank you.

I thought the OR wouldn’t accept any money to be put towards Christmas and Birthdays  because it is not essential funds and should not have anything left over that is not classed as essential?

adam033

warby68 said:

The contents insurance looks high, not impossible, but just checking that one isn't a mistake.
The experts have posted above me so take notice of them but that number just stuck out a bit 

Hi Warby

Believe it or not my contents insurance is higher it’s actually £62 a month because of multiple CCJ’s and that was using moneysupermarket’s comparison site so competitive. Soon as I click I have a CCJ they whack the price up, I assume because of the higher risk that I’ll commit fraud due to being under financial pressure 🤷‍♂️

However I know they wouldn’t accept £59, so I’ve just plucked £43 out of thin air and tried to cover it up elsewhere.

adam033

JCS1 said:

So is the rent fully paid by you, and then you have split the rest of the figures?  it might be easier to show your partner's contribution to household expenses (so after their own debt repayments) and then the full costs.

Yes, I pay the rent myself and then we share the council tax, gas, water, electric, TV licence and broadband/sky. 

But it still means I’m putting in around 80% of the total household bill because of the rent. Would the OR accept this?
If the OR didn’t accept it then it would mean a certain IPA because of the funds left over.

Bluecar2

When I done mine I listed all the bills in full, I added my wifes income minus her essential bills of own (Credit card, Mobile etc). I also reduced my working hours down from 50 a week down to 25 so that i didnt have to pay an IPA, After 6 month the or sent a request for an IPA of £97 a month so i reduced my hours down to 20, nothing was said and i have now been discharged a month

adam033

Bluecar2 said:

When I done mine I listed all the bills in full, I added my wifes income minus her essential bills of own (Credit card, Mobile etc). I also reduced my working hours down from 50 a week down to 25 so that i didnt have to pay an IPA, After 6 month the or sent a request for an IPA of £97 a month so i reduced my hours down to 20, nothing was said and i have now been discharged a month

What was your disposable income showing when you did it? This is what I’m worried about, that the OR may try and amend certain figures to push the disposable income figure up thus bringing an IPA into play. Because the figure required (less than £20 left) is so small, only one figure on the SOA needs to be amended and it means an IPA can be sought. This is why I’m trying to get my SOA to the point where that it can’t be critiqued.

Apart from what fat belly has suggested do the other figures seem perfectly reasonable?

Does the OR ask for proof of bills I.e. I will have to dig out all my utility bills and take photos to prove?