Ipa if i go bankrupt

Ok last thread from me...again warts and all

Ive been advised on here i should be granted bankruptcy.my question is ...

£1900pcm i earn
£900 board payment to partner inc food all bills etc etc
In truth if my debts are wiped out there is £1000 there to pick over, so whats reasonable expenses to claim for after that, i have one dependant who is 15, dental costs etc etc......what would they take off me for an IPA is my question?
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  • Fill this in & select "format for MSE" and post here


    http://www.stoozing.com/calculator/soa.php


    Usual rule is pay your monthly expenses and anything left OVER £20 the receiver will take dor a 3yr IPA/IPO unless anytime your finances change
    Not quite a newbie as you think ;);) (the member formally known as philnicandamy!)

    FINALLY a qualified CAB debt caseworker 2015..:p
    BSC 58 :D
  • National_Debtline
    National_Debtline Posts: 7,998
    First Post First Anniversary Combo Breaker
    Organisation Representative
    Hi 4f02


    I've picked this up on your other thread, but it's really important you complete a SOA using the link provided above.


    If for example you had £500 per month available to offer your debts, you could potentially clear them in just under 4 years. And given that you can be asked to payments in bankruptcy for 3 years, it's likely bankruptcy would not be your best option.


    I'd recommend completing the SOA and then posting it back on the board so we can offer more advice.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • 4f02
    4f02 Posts: 23 Forumite
    After putting in all my wages and all my minimum debt payments and my living expenses and i can honestly say ive put the minimum it says -150 roughly.

    On a dmp it offers 750 roughly to my creditors but theres no end game and no gaurantee my interest will be frozen on 7 credit cards

    Id rather pay it on a ipa and be finished in 3 years at least id know id be clear
  • Clouds88
    Clouds88 Posts: 386
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    Forumite
    I’m not an expert at all but I think you need professional advice, it doesn’t seem like the best option at all. Post a public SOA and amount of debts and someone can advise properly. For example, you don’t put in all your minimum payments and then take an amount spare, you put in all your basic outgoings and then 100% of any surplus you have for three years will go into the bankruptcy,

    I went bankrupt last month because I’ve tried a DMP and we really don’t have much spare money at all, my husband then lost his job so it was the best solution for us. If I could have afforded £2-400 per month towards my debts I would have stuck with a DMP or token payments and saving for full and finals- there is so much more control and no one telling you an amount you have to live off of, it is hard under bankruptcy- there’s no point earning extra money as it will get taken off of me, but for me at least it is just a year I would hate to be in this for 3 years.

    Hope that is at all helpful.
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    Clouds88 wrote: »
    there is so much more control and no one telling you an amount you have to live off of, it is hard under bankruptcy

    The amount the OR gives you to live off is actually quite generous and once you get used to doing it and living within your means you'll be wasting far less money than you previously used to so once out of the IPA your bank account will start to rocket due to the fact you no longer practice the wasteful ways of the past. You are also less likely to end up back in the same situation several years down the line. A DMP doesn't achieve this which is why you see people coming back time and time again because they've not learned anything.
  • Clouds88
    Clouds88 Posts: 386
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    Forumite
    Not generous in my case- they decreased my food budget and clothes budget, I had to cancel my gym membership as it wasn’t an allowable expense (free swimming with the kids with my gym membership) I think it depends who you get. We will manage to get through just about this year. I I understand what your saying though and it probably works out well for some people, especially if you don’t have kids.
  • maxmycardagain
    maxmycardagain Posts: 5,743
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    Forumite
    £900 board to your partner might take some swallowing TBH
    Now we all know how it felt to play in the band on the Titanic...
  • maxmycardagain
    maxmycardagain Posts: 5,743
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    Forumite
    4f02 wrote: »
    ......what would they take off me for an IPA is my question?


    Most, if not all, of any excess, and as you would get a "NIL" tax code, there would be more to take as youd pay no tax
    Now we all know how it felt to play in the band on the Titanic...
  • 4f02
    4f02 Posts: 23 Forumite
    I must admit the £900 i pay to my partner is high, i cant reduce that as i cant tell her she just wouldnt understand any of this, theres little chance of her finding out, our finances are all seperare and i wont need credit going forward ...im confused now im not expecting loads to live on but i currently have £90 spare per month and the interest on the cards mean the debt is not coming down.ive managed 2 out of the 7 as fixed payment with interest making the cards finish in 5 years which even though doubles the debt i can see an end game with those 2, Natwest will not accept a reduced payment.

    Im trying to negotiate a bit more for me to live off .

    How do you not pay tax?
  • 4f02
    4f02 Posts: 23 Forumite
    Statement of Affairs & Personal Balance Sheet
    Summary
    Monthly Budget Summary Amount(£)
    Total monthly income 1,900
    Monthly expenses (incl. HP & secured loans) 1,030
    Available for debt repayments 870
    UNsecured debt repayments 894
    Amount short for making debt repayments -24
    Personal Balance Sheet Summary Amount(£)
    Total Assets (things you own) 0
    Total Secured & HP Debt -0
    Total Unsecured Debt -24,938
    Net Assets -24,938
    Household Information
    Number of adults in household 2
    Number of children in household 1
    Number of cars owned 0
    Income, Expense, Debt & Asset Details
    Income Amount(£)
    Monthly income after tax 1900
    Partners monthly income 0
    Benefits 0
    Other income 0
    Total monthly income 1900
    Expenses Amount(£)
    Mortgage 0
    Secured/HP loan payments 0
    Rent 900
    Management charge (leasehold property) 0
    Council tax 0
    Electricity 0
    Gas 0
    Oil 0
    Water Rates 0
    Telephone (land line) 0
    Mobile phone 20
    TV Licence 0
    Satellite/Cable TV 0
    Internet services 0
    Groceries etc. 0
    Clothing 20
    Petrol/diesel 0
    Road tax 0
    Car Insurance 0
    Car maintenance (including MOT) 0
    Car Parking 10
    Other travel 10
    Childcare/nursery 0
    Other child related expenses 10
    Medical (prescriptions, dentists, opticians etc.) 15
    Pet Insurance/Vet bills 10
    Buildings Insurance 0
    Contents Insurance 0
    Life Assurance 0
    Other Insurance 0
    Presents (birthday, christmas etc.) 15
    Haircuts 0
    Entertainment 20
    Holiday 0
    Emergency Fund 0
    Total monthly expenses 1030
    Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
    Mortgage 0 (0) 0
    Secured & HP Debt totals 0 - -
    Unsecured Debt Description Debt(£) Monthly(£) APR(%)
    credit card 2847 123 30
    credit card 110 5 37
    credit card 450 12 37
    loan 2000 80 30
    loan 3000 123 25
    loan 9400 321 25
    credit card 900 38 35
    credit card 1931 80 35
    credit card 2950 50 35
    credit card 1350 62 35
    Unsecured Debt totals 24938 894 -
    Asset Description Value (£)
    Cash 0
    House Value (Gross) 0
    Shares and bonds 0
    Car(s) 0
    Other assets (e.g. endowments, jewellery etc) 0
    Total Assets 0
    Comments on the results

    You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £24. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at https://www.stoozing.com.
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