SOA advice please

LincsPaul · 14 December 2017 at 1:29PM

Hello I'm posting this on behalf of a friend who is having trouble logging in to the forum. Her monthly expenses add up to £915 right now and she has a job where she earns £900. No IPA at the moment. She has the opportunity of a new job earning the dizzy heights of £1000-1100 but is worried about taking it because she may get an IPA. Crazy really, considering her low wage.

Does anyone have experience of the OR's treatment of relaively low earners? Any ideas for areas which could be increased a tad? She has no dependents, unmarried etc.

Rent inc. bills in a house share 450
Medicine 10
Dentist+opticians 35
Public transport (for work-no car) 75
Phone 25
Presents 10
Groceries 130
Toiletries 70
Hair 10
Domestic expenses 20
Clothing 50
Holidays 20
Emergency fund 10
TOTAL £915 /month

INCOME £900 / month

luvchocolate · 14 December 2017 at 1:39PM

I was a low eaner approx £1,000 and my examiner moved items around to avoid an I.P.A.
The groceries can certainly go up by another £100, another £10 on hair.

LincsPaul · 14 December 2017 at 1:54PM

Nice to hear a positive story! My dealings with the OR have been positive too so I hope my friend has a similar experience to yours.

As she submitted the above SOA at the beginning is there a possibility the OR would take a dim view of food suddenly increasing by £100, for example? Or is each one taken on its individual merits?

luvchocolate · 14 December 2017 at 2:01PM

they put down what they could afford for food...now more income they can afford to eat better.
When do they become discharged?

System · 14 December 2017 at 2:04PM

LincsPaul wrote: »

Rent inc. bills in a house share 450
Medicine 10 For what? She can get a prescription certificate if she needs a lot of prescription drugs.
Dentist+opticians 35 NHS dentist and opticians
Public transport (for work-no car) 75
Phone 25
Presents 10 Broke, can't afford them.
Groceries 130 Far too much for a single person, £10-£20 a week for food shopping should be the target
Toiletries 70 Again far too much, should be less than £20 a month. Needs to cut back on the smellies.
Hair 10
Domestic expenses 20
Clothing 50 Needs to stop buying some for a while. What she has should last a few years.
Holidays 20 She's broke, she can't afford to go on holiday
Emergency fund 10
TOTAL £915 /month

INCOME £900 / month

So adjust what I've mentioned in red and there's between £150 and £200 in savings. Whilst I understand that she wants to increase what she puts down the truth of the matter is that she is already above what you can live for. I doubt that she'll get an IPA on an income of £1000 a month.

bewildered1 · 14 December 2017 at 3:10PM

Tarambor, the OP has made it clear that their friend does not want an IPA. To try to ensure this they are asking for advice on whether or not they are putting all allowable expenses.

You advised them to lower their expenses. This is bad advice as it would most likely result in an IPA. Just because someone can live on less doesn't mean they have too, especially when trying to avoid an IPA.

To say that it's unlikely they will get an IPA if they earn £1,000 per month is also bad advice. An IPA will likely be given if you have £20 or more per month left over after expenses regardless of how much you earn.

LincsPaul · 14 December 2017 at 3:13PM

Firstly, the question was: what allowances will the OR agree to, not how cheaply can a single person live. The original numbers above have already been accepted by the OR so ask yourself why on earth would she or they be looking to decrease them?

Secondly, she isn't broke, she's an undischarged bankrupt with a job, liveable salary and no debt.

IAmWales · 14 December 2017 at 3:16PM

bewildered1 wrote: »

Tarambor, the OP has made it clear that their friend does not want an IPA. To try to ensure this they are asking for advice on whether or not they are putting all allowable expenses.

You advised them to lower their expenses. This is bad advice as it would most likely result in an IPA. Just because someone can live on less doesn't mean they have too, especially when trying to avoid an IPA.

To say that it's unlikely they will get an IPA if they earn £1,000 per month is also bad advice. An IPA will likely be given if you have £20 or more per month left over after expenses regardless of how much you earn.

Freeing up money to pay towards debts is never bad advice.

OP £70 a month on toiletries is ridiculous, what is she buying? They might allow a little more on food but that should include toiletries.

LincsPaul · 14 December 2017 at 3:33PM

Food is quite low so I presume toiletries includes all the house cleaning products, personal cleaning, toilet rolls and laundry (not cheap these days).

From my recollection the forms do not contain definitions for each category, unfortunately. I'd ask for clarification here but my thread seems to be mainly attracting the burn-them-in-hell brigade, who I suspect have no experience of bankruptcy, so I'm not sure how much help they can offer. Thanks for the [STRIKE]advice[/STRIKE] opinions though chaps! ;o)

debt_doctor · 14 December 2017 at 5:18PM

Hi,
Those expenses are more than reasonable and could be increased if the income allowed. No justification for an IPA.
DD

NekoZombie · 14 December 2017 at 5:28PM

Tarambor wrote: »

So adjust what I've mentioned in red and there's between £150 and £200 in savings. Whilst I understand that she wants to increase what she puts down the truth of the matter is that she is already above what you can live for. I doubt that she'll get an IPA on an income of £1000 a month.

Unnecessarily harsh post. Assuming the person seeking advice is going bankrupt, this is a fresh start for them. That means living within their means, yes, but it does not mean following the same approach as someone looking to free up money to clear debt ASAP.

Even bankrupts have the right to a certain quality of life once on the other side.

SOA advice please

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