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  • FIRST POST
    • Jaypsarticus
    • By Jaypsarticus 9th Jul 18, 10:55 AM
    • 23Posts
    • 0Thanks
    Jaypsarticus
    IPA about to ruin my life.
    • #1
    • 9th Jul 18, 10:55 AM
    IPA about to ruin my life. 9th Jul 18 at 10:55 AM
    Morning folks. I will try and keep this pretty brief.

    I have just been discharged from bankruptcy but on month 9 I signed up for an IPA for 75 due to a small payrise.
    I currently live in a rented property while my partner has a small mortgage on her home with her 2 children.

    Now the plan was always going to be that at the end of my bankruptcy term we were going to move in together which we still hope to do.

    I am aware that this will be classed as a circumstance change as I will have a small amount more disposable income but the problem we have idms that my partner currently receives 700 in benefits for been a single parent to 2 children and when I move in she will lose that due to my earnings so effectively my disposable income will go up slightly but her income will fall dramatically!

    Is there anything we can do or is it going to be best to keep my house on for 3 years renting ?
    My partner is distraught as she thought after the year term of bankruptcy we could start a normal life together and now we are just realising that were stuck for 3 years not able to save and me with a 20 a month disposable income? I'm pretty sure she will have second thoughts about it all now unless I can try and make it work.

    Any guidance will be greatly appreciated.

    Regards

    Jason
Page 1
    • mitch2509
    • By mitch2509 9th Jul 18, 11:03 AM
    • 41 Posts
    • 57 Thanks
    mitch2509
    • #2
    • 9th Jul 18, 11:03 AM
    • #2
    • 9th Jul 18, 11:03 AM
    She might not loose all her benefits, have you done a calculation using the online calculator?

    Also she won't be 700 down as you will be paying half her bills.


    If you earn more that your partner then on your soa for your ipa your supposed to pay a bigger portion of the bills percentage wise.

    Someone else will be along to explain it better
    Debts at LBM (June 18):-

    Capital 1 - 413.46 Vanqqquis - 1676.43,First D Visa - 1578.73, Next - 2083.12, TSB - 5326.59,Barclaycard - 5195.01, Capital one me - 1359.99, Loan - 5702.31, Loan - 2739.99, Total 26,075.63
    • Jaypsarticus
    • By Jaypsarticus 9th Jul 18, 11:06 AM
    • 23 Posts
    • 0 Thanks
    Jaypsarticus
    • #3
    • 9th Jul 18, 11:06 AM
    • #3
    • 9th Jul 18, 11:06 AM
    No Mitch, thanks for the reply. We have used the benefits calculator online and she loses everything. I currently pay 100% of all my bills as I live alone but when I move in with partner then I can only claim to pay 50% as she also works part time. It's all a stress nightmare to be fair. What an awful situation
    • mitch2509
    • By mitch2509 9th Jul 18, 11:19 AM
    • 41 Posts
    • 57 Thanks
    mitch2509
    • #4
    • 9th Jul 18, 11:19 AM
    • #4
    • 9th Jul 18, 11:19 AM
    If you earn more then you pay a bigger percent of the bills that is allowed by the OR.
    Debts at LBM (June 18):-

    Capital 1 - 413.46 Vanqqquis - 1676.43,First D Visa - 1578.73, Next - 2083.12, TSB - 5326.59,Barclaycard - 5195.01, Capital one me - 1359.99, Loan - 5702.31, Loan - 2739.99, Total 26,075.63
    • Jaypsarticus
    • By Jaypsarticus 9th Jul 18, 1:56 PM
    • 23 Posts
    • 0 Thanks
    Jaypsarticus
    • #5
    • 9th Jul 18, 1:56 PM
    • #5
    • 9th Jul 18, 1:56 PM
    Thanks for the reply Mitch. My partner receives 800 wage and 700 benefits her outgoings are 700 a month and she is left with 800 for fuel and food for herself and 2 children. When I move in she will only receive the 800. I get 2100 a month so we would have a combined income of 2900 with a combined outgoing of 1700 leaving 1200. My partner would expect to take the 800 out of that for her and her families living expense leaving me 400 for which I will need to pay fuel arc so I won't have disposable income more that I do now but I fear that the OR won't look at it like this and see that I have a 1200 disposable income and take around 800off me when I calculate my living costs into that ??
    • lisyloo
    • By lisyloo 9th Jul 18, 3:22 PM
    • 22,482 Posts
    • 11,085 Thanks
    lisyloo
    • #6
    • 9th Jul 18, 3:22 PM
    • #6
    • 9th Jul 18, 3:22 PM
    her outgoings are 700 a month and she is left with 800 for fuel and food

    I am quite confused.
    Do outgoings not include fuel and food?
    This makes it quite hard to understand.
    • Jaypsarticus
    • By Jaypsarticus 9th Jul 18, 3:51 PM
    • 23 Posts
    • 0 Thanks
    Jaypsarticus
    • #7
    • 9th Jul 18, 3:51 PM
    • #7
    • 9th Jul 18, 3:51 PM
    Hi there. Her monthly commitments are 735 a month which is mortgage/car/ credit card arc but there her own bills which she pays for with her wage. Her monthly living costs are 800ish which is food/petrol/ children's after school stuff/ pet stuff arc. The living costs are made up purley of benefits which she will lose when I move in but I said I would make up that cost with my disposable income which I will gain moving in but I am worried that it won't be accepted by the OR and then they will take it all leaving me with 20 and my partner 800 down due to losing her benefits
    • LaLaLa34
    • By LaLaLa34 9th Jul 18, 9:20 PM
    • 28 Posts
    • 8 Thanks
    LaLaLa34
    • #8
    • 9th Jul 18, 9:20 PM
    • #8
    • 9th Jul 18, 9:20 PM
    I feel for you buddy, If it was me i'd rather have just quit my job than taken the payrise. Unambitious I know but at least there's no 3 year IPA.
    • warby68
    • By warby68 9th Jul 18, 9:46 PM
    • 1,011 Posts
    • 9,851 Thanks
    warby68
    • #9
    • 9th Jul 18, 9:46 PM
    • #9
    • 9th Jul 18, 9:46 PM
    I am confused.

    Presumably when you move in you will no longer have many bills of your own. Her current outgoings plus living expenses ( to use your terms) are 1500 - surely they will only go up a little when you move in for extra food, utilities and council tax. You seem to have added another 1000 in somewhere.

    Even if you cost the household say 500 that's total expenses of 2000 versus income 2900

    What's missing?
    • joa1210
    • By joa1210 10th Jul 18, 1:45 PM
    • 62 Posts
    • 10 Thanks
    joa1210
    i'm reading it differently, so when you move in together she will lose the benefits, but she still has her own commitments, you need to sit down with both your incomings (hers after all the things that you DONT/WONT contribute to such as deb)t so for example, she has 700 in but pays 200 on CC and 50 on mobile phone that means her contribution would only be 450 to the household. then do the SOA of mortgage/food/petrol/utilites etc. its not a 50/50 split because her contribution is not a 50% contribution.
    the OR SHOULD (i think) view the household incomings and outgoings rather than looking at what potentially you have spare
    • scd3scd4
    • By scd3scd4 11th Jul 18, 2:37 PM
    • 973 Posts
    • 830 Thanks
    scd3scd4
    Just out of interest what is it you want, for her to keep the benefits and you live there.


    Are the benefits not given on the understanding she does not have a partner or other income?
    Last edited by scd3scd4; 11-07-2018 at 2:42 PM.
    • Jaypsarticus
    • By Jaypsarticus 12th Jul 18, 9:57 AM
    • 23 Posts
    • 0 Thanks
    Jaypsarticus
    Hi Everyone, thanks for the replies.

    Basically we just want to move in together but the money my partner loses in benefits i will need to provide back to her. We have spoke about me paying a rental agreement of 700 a month which is what i pay rent now and this will cover her benefits lost. Problem is this then become an income for her at a value of 8400 a year which if she declares she will have to pay tax on as she earns 8000 from her current job. Basically she will let me move in, sacrifice 700 a month in benefits, the OR will see that i am 700 a month in profit and take it from me leaving us as a family 700 down unless i can use the whole families Expenditures ( 2 adults, 2 children 12,18 and my daughter whole lives with us 2 days a week) ?
    • Jaypsarticus
    • By Jaypsarticus 12th Jul 18, 10:43 AM
    • 23 Posts
    • 0 Thanks
    Jaypsarticus
    This is what we have quickly drafted up based on a family of 4 with an extra child on a weekend
    Partners monthly income after tax....... 800
    My income after tax .....................2100
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2900


    Monthly Expense Details

    Mortgage................................ 320
    Secured/HP loan repayments.............. 520
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 126
    Electricity............................. 55
    Gas..................................... 92.5
    Oil..................................... 0
    Water rates............................. 16.17
    Telephone (land line)................... 9.99
    Mobile phone............................ 51 3 mobiles
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 41.33
    Internet Services....................... 18.11
    Groceries etc. ......................... 600
    Clothing................................ 60
    Petrol/diesel........................... 400 2 x cars
    Road tax................................ 27
    Car Insurance........................... 73
    Car maintenance (including MOT)......... 80
    Car parking............................. 15
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 15
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 12.23
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15
    Haircuts................................ 25
    Entertainment........................... 0
    Holiday................................. 50
    Emergency fund.......................... 40
    Total monthly expenses.................. 2694.45



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 60000....(320)......0 partners mortgage
    Hire Purchase (HP) debt ...... 9000.....(280)......0<
    (Unnamed debt).................6000.....(240)......0 Partners car
    Total secured & HP debts...... 75000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts..........0.........0.........-



    Monthly Budget Summary

    Total monthly income.................... 2,900
    Expenses (including HP & secured debts). 2,694.45
    Available for debt repayments........... 205.55
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 205.55


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -75,000
    Total Unsecured debt.................... -0
    Net Assets.............................. -75,000



    is this how i would present it ? does this look normal?

    Am i right in thinking that if our combined outgoings are 2694 and i pay 75% towards those at a cost of 2020 then my surplus is actually 80? im so confused ha! i dont want to submit this if its wrong and i get a 500 IPA?
    Last edited by Jaypsarticus; 12-07-2018 at 11:19 AM.
    • joa1210
    • By joa1210 12th Jul 18, 11:32 AM
    • 62 Posts
    • 10 Thanks
    joa1210
    i would use the whole family income and expenditure for sure, as it gives no-one a massive surplus so to speak i'm not sure on the figures there are more qualified than me on here to help with that as i'm not sure 50 month for holidays would be accepted but it could be put somewhere else perhaps and maybe other bits could be increased etc.
    • Jaypsarticus
    • By Jaypsarticus 12th Jul 18, 11:36 AM
    • 23 Posts
    • 0 Thanks
    Jaypsarticus
    Hey Joa1210

    I appreciate your response. hopefully i can get it sorted in our favour otherwise my Partner will not let me move in ha!
    • PaulL2
    • By PaulL2 13th Jul 18, 5:34 PM
    • 46 Posts
    • 21 Thanks
    PaulL2
    Don't forget the amounts in the SOA are allowances - they have to be fair, realistic and appropriate to your situation but the OR is unlikely to be asking for receipts or bills at any point (they simply don't have the time or inclination).

    Many people have included allowances for renting their room from their parents, at the market rate, plus a fair share of bills. Whether the cash actually ends up in the parents' hands or down the pub is neither here nor there! Why should it be different for girlfriends? The OR can't ask to look at her mortgage agreement or for copies of her bills or bank statements as they are hers and she has no legal connection to you.

    Why not 'lodge' with her for now? Or am I wrong? Just trying to come up with ideas...
    • desole
    • By desole 13th Jul 18, 6:55 PM
    • 3 Posts
    • 1 Thanks
    desole
    Take that SOA data and split the costs so that you are contributing 50% of 1400 worth, thus you do not create a tax liability, just sharing expenses.
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