Bankruptcy and child maintenance

Frangelina

Hi everyone,

Just wondering about people’s experiences of having to make payment when the only income is benefits and maintenance. It seems so wrong that maintenance money can be taken from and wondered how often this actually happens. 

If I use my SOA most of the maintenance money is “spare” 

Sonic101

I am not sure what you mean by ‘having to make a payment’ - presumably you are talking about getting an IPA if you declare bankruptcy? 

Don’t know about maintenance, but certainly if your only income is from benefits you won’t have to pay anything.

If you post your SOA on here, there are some great people who will be able to give you feedback/advice.

Frangelina

Thank you yes I mean IPA. I definitely will do my SOA and post it on here but because my rent is low the maintenance is definitely over and above my necessary income. 

sourcrates

Frangelina said:

Thank you yes I mean IPA. I definitely will do my SOA and post it on here but because my rent is low the maintenance is definitely over and above my necessary income. 

As said above, if your income is from benefits, then no IPA will be granted.

The maintenance is, I assume, for the upkeep of your child/children, so in the income section of your budget, you list the figure you get in maintenance, and in the expenditure section, you list a similar amount under the heading "child related expenses".

That money is meant for clothes/shoes/pocket money/food/school dinners/birthdays/Christmas etc etc, and any other child related expense you may have for your kid/kids.

It is not for the OR to take against your debts.

Frangelina

Does anyone know if it’s okay for me to refuse child maintenance in order to avoid the IPA? 

sourcrates

Frangelina said:

Does anyone know if it’s okay for me to refuse child maintenance in order to avoid the IPA? 

Have you read my post above at all ?

Frangelina

sourcrates said:

Frangelina said:

Does anyone know if it’s okay for me to refuse child maintenance in order to avoid the IPA? 

Have you read my post above at all ?

Sorry sourcrates, I did and thank you. But I have been told by citizens advice and step change that child maintenance is considered income and is used to calculate IPA.

My benefits leave a surplus of £100 a month but as we know, where benefits are the only income, no IPA is due. 

However, the maintenance (£280) would be considered as income that is surplus and therefore can be taken. I can’t just whack £380 in to the child expenses box to cancel out my surplus because there’s no way to justify that as an expense. At least that’s what CA and SC have told me. 

Frangelina

The be already put my child’s expenses on my SOA under the various areas, food, medical, hobbies, hair cuts, holidays etc 

JCS1

Why don't you post up your SOA so we can check it over?

Frangelina

JCS1 said:

Why don't you post up your SOA so we can check it over?

Thanks, okay. It’s all by hand though, is there a good site that converts it in to a form like I’ve seen people do on here?

sourcrates

Frangelina said:

JCS1 said:

Why don't you post up your SOA so we can check it over?

Thanks, okay. It’s all by hand though, is there a good site that converts it in to a form like I’ve seen people do on here?

You can find it here -

SOA Calculator (stoozing.com)

When working out a budget for Bankruptcy/IVA/DRO whatever it may be, always over budget in each category, you may be surprised how high some of the thresholds actually are, its better to budget too much, than not enough.

Any categories the OR thinks are too high, they will question them with you, as to why they are so high, all that will happen is they may be reduced.

You must be proactive in this, otherwise you could end up with an IPA when you really don`t warrant one.