IPA Help please

IPAhelp

Hi, Im new here and my head is spinning so thought I would come here and ask for some advice.

I am considering going bankrupt, please dont judge, due to drop in commission in work, credit shuffling, mental health and a gambling addiction. I am no longer gambling and have seeking help in the mental health issue.

But my main question is, I know after income and expenses I will be seen as having a surplus, this is not debatable, however my wages fluctuate every month some months I can earn zero commission take home just basic, on a good month I can earn £2500 commission before tax ontop of basic.

Realistically how much of my surplus would go on an IPA, I keep seeing conflicting information some say 50-70% whilst other sites say full 100% of surplus. and how would they realisticly work out what my payment would be each month

I hope someone can help? Many thanks

ManyWays

Bankruptcy can be a good option after a major gambling problem, letting you get a clean start after 3 years.

It is easier if you can post a Statement of Affairs here, many people are surprised at the amount of expenses that are allowable in bankruptcy. Include the lender names please.
https://www.stoozing.com/soa.php

If you could put your basic, no commission amount, in as income and the afterwards list the commission amounts you have earned per month in the last 6 months (after tax) that lets us see a good overview.

IPAhelp

This is using base salary:

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

Monthly Income Details[/b]
Monthly income after tax................ 2213
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2213[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 35
Internet Services....................... 31
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 450
Road tax................................ 0
Car Insurance........................... 150
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 95
Pet insurance/vet bills................. 260
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 50
Entertainment........................... 50
Holiday................................. 33
Emergency fund.......................... 0[b]
Total monthly expenses.................. 2144[/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
Loans..........................45000.....1700......0
credit cards ..................35000.....600.......0[b]
Total unsecured debts..........80000.....2300......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,213
Expenses (including HP & secured debts). 2,144
Available for debt repayments........... 69
Monthly UNsecured debt repayments....... 2,300[b]
Amount short for making debt repayments. -2,231[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -80,000[b]
Net Assets.............................. -80,000[/b]

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

This is using the an average on commission take home over the last 6 months

Total monthly income: £

Expenses (incl. HP & secured debts): £

Available for debt repayments: £

Unsecured debt repayments: £

Surplus (shortfall if negative) £

IPAhelp

based on. an average 6 months payslips would be

Monthly Budget Summary[/b]
Total monthly income.................... 3,200
Expenses (including HP & secured debts). 2,144
Available for debt repayments........... 1,056
Monthly UNsecured debt repayments....... 2,300[b]
Amount short for making debt repayments. -1,244[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -80,000[b]
Net Assets.............................. -80,000[/b]

ManyWays

No council tax, energy, water bills?

Do you own the car or is it leased by your employer or what?
That is a lot of petrol - isd it at the cuurent high prices?

no parking costs ever?

IPAhelp

Thank you for replying.

Car is not owned by me, I use it but cover most costs bar road tax, I work full time but also live with an elderly parent for whom I am a registered carerr I pay board which covers all bills except food and because I am legal career they get the council tax benefit - hense no payment to other bills

My full time job is an 80 mile daily round trip, parking is covered through a blue badge which I have due to my health issues (I do not claim any benefits at all but do have a blue badge)

I also care for a my pet who due to age and health issues cost approx £260 per month for all insurance medical costs and food - this can all be evidenced.

I know I will have to pay an IPA and I am not skirting responsibility to pay that I just want to know if the IPA is worked on a % of my surplus (which is volotile due to a high commission element of my role) or if regardless of how much my surplus is on a month by month basis will they take the full 100% of the surplus

kevker23

I was in a similar situation, my pay fluctuates month to month depending on overtime and on call payments. For me they took an average over six months and used that amount. I could have argued that the agreement with them was I would pay 50% of overtime rather than all my surplus, but the IPA assesor was very much give and take, allowing me expenses that they wouldn't normally allow, I think because I had been so honest and was fully prepared to pay as much as I could manage. In theory, he said your entire surplus should be paid to the IPA, but I found them more than willing to take every case on its own merits.

IPAhelp

thank you, I have had a couple very rare high months so I’m pacing (whilst I save the fee and get a buffer) I have a couple maybe 3 months of lower commission months so this should bring my average down. I am fully prepared to pay what I need to, I’m not disputing that. I just want to be prepared for the worst case scenario… I have large vet and car outgoing due to ageing pet (I have no dependents) and the job I have is reliant on my travel… no travel no job so if it’s fair I’m happy - otherwise I think I will be asking for a review monthly lol

IPAhelp

how did you find the assessor, that’s the bit that terrifies me… having been single all my life I have never had to be accountable

kevker23

https://forums.moneysavingexpert.com/discussion/comment/81980749#Comment_81980749

I found him incredibly friendly. Obviously he had a job to do, but it was more a chat. He asked probing questions about some of the expenses, but I just answered truthfully and he seemed fine with that. I think going in with a friendly manner and just explaining everything will go a long way

iqbal1976

https://forums.moneysavingexpert.com/discussion/comment/81962535#Comment_81962535

Hi sorry to jump in, we have large pet costs too due to permanent health issues (medicines, insurance, vets and physiotherapy) totalling around 300 a month 😬 how did the OR get on with this because im torn, i appreciate its huge but its a genuine, evidenced cost that I can't help.