Standard Financial Statement - medical costs

Hi, I've posted on other threads but struggling to get a specific answer. I'm considering an IVA or bankruptcy, and leaning towards bankruptcy. I'm really worried about the level of an income payment agreement, considering my expenses. I pay for quite a lot of things to help with my diabetes, as it's really bad and these things aren't covered on the NHS. They all benefit my health massively and I don't know what I'd do without them. My income is £1500 ish per month and I'm paying


£40 for medicines to boost my immune system
£30 for equipment - this isn't £30 every month but an average
£160 for a monitoring system


I also have problems with my eyes. I'm likely to need new glasses with expensive lenses every few months over the next year. I had eye surgery last year and it's changing. I've had my current glasses for a year so I don't have receipts showing that I'm buying these regularly at the moment.


Will these expenses be allowed? If not, what can I do?

Comments

  • sourcrates
    sourcrates Posts: 28,727
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    edited 11 January 2019 at 6:52PM
    Hi,

    The idea of bankruptcy is to try to realise as much money as possible for your creditors, but it is not designed to make you suffer in the process.

    This section of the Insolvency act covers the specific area you mention :


    31.7.122 Health care provision, including dentists and opticians
    NHS healthcare is provided to meet the reasonable needs of the population in providing healthcare, so as an essential expense whilst for example, payment towards NHS dental care should be included, claims for expenditure for private treatment or health insurance would not normally be considered.


    Where the bankrupt can demonstrate to the satisfaction of the official receiver/trustee that he/she has no practical alternative but to pay for private healthcare (such as there being no NHS dental service available to them in the area where they live or work) an allowance for payment for an annual check-up and basic treatment at a privately run dental practice may be considered as meeting a reasonable domestic need, in the same way as an allowance for charges made by an NHS dentist for these treatments should be allowed.


    In the same way the costs of paying for eye tests, glasses etc. may be included as a reasonable outgoing. The official receiver should investigate above average claims, and, where a cheaper alternative is available (e.g. less expensive glasses frames) which would still meet the bankrupt’s reasonable needs, only allow expenditure sufficient to provide the cheaper alternative.

    It must be stressed that any payments claimed for private healthcare or medical insurance should only be allowed where it can be demonstrated that there is no practical alternative NHS facility available, or, for example, that to disallow the payment would have a significant detrimental effect on the health, wellbeing or future of a dependant child.


    Other expenses covered here :


    https://www.insolvencydirect.bis.gov.uk/technicalmanual/ch25-36/Chapter31/part7/part4/part_4.htm


    Basically you need to explain to the OR why you need these items, what effect going without them would have on you, preferably obtain back up evidence from your Doctor to corroborate this, as long as the expense can be justified as reasonable, all will be well.
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  • Owllover
    Owllover Posts: 18 Forumite
    Thank you so much for the detailed response sourcrates. That has put my mind at ease - kind of!
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