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| T O P I C R E V I E W |
| Searcher |
Posted - 22 August 2010 : 20:28:29
I need some help please on some of the questions on the SOA. Sorry to ask so many things, but we want to get everything down correctly and fairly and we don't have much time left to do the SOA:-
1) My wife and I both intend to file for BR at the same time, and there is just the two of us living at the property. Am I correct in assuming that all the figures to be entered at 7.1 (on p21) should be the combined total for the household – and if not, should the figures entered be apportioned in line with the percentage of total income each of us earns? My feeling is that the figures should be for the *total/combined...
2) It seems there are set allowances for items such as housekeeping (food & cleaning) and clothing (£387 & £111 pcm?). We usually tend to spend more than that on the housekeeping, partly due to health reasons. Should we enter a higher figure (say £400) and just accept that it may be knocked back, or should we put £387 – which sounds like we know the system!?
3)If an IPA/IPO is set up, do we have to account for all expenditure within each category, and will it matter if we underspend in one area but overspend in another? For instance, we would probably spend more that the budget for housekeeping, but less than the clothing budget?
Another area that is difficult to predict is dental and opticians – a new spare of specs might set us back £250, and is overdue for my wife, and then with the good old dentist we might avoid them thus leaving a surplus in the budget…
4) I gather that there are set allowances for things such as contents insurance, medical/accident insurance/hairdresser etc, so should these be entered even if you don’t currently use them? Actually, we have not been able to afford these insurances for some years, so maybe now we should take insurance out and include them on the budget?
5) We are self employed and work from home. There will be one or two required overheads regardless of whether we succeed in making a profit, such as the website hosting (£10pcm) and data protection registrar fees (£3pcm) – is it OK to include these under “Other Essential Payments”?
6) Is it acceptable for the disposable income/surplus deficit to be a negative figure. eg:- household income £1000, expenditure £1100; or are expected to tailor/cut the expenditure figures to avoid that? I’m not quite sure if they are looking for what we WERE spending, what we PLAN to spend in the coming months following BR, or what we would LIKE to spend, but I’m assuming that we should enter what we PLAN to spend!??
7) During the 3 years following BR, do you have to declare any sales you might make on Ebay if these are personal possessions (lets say all items are under £500 and probably in practice will be under £100)? Is it OK to receive such payments via PayPal Top Up Card (which is not a bank account) and spend that money without declaring it? Would this be pushing our luck!??
8) I understand that during the period of an IPA/IPO (normally 3 years) we would have to declare any changes in our income situation. Does this apply if an IPA/IPO was not found to be necessary by the OR, and say you are discharged after 9-12 months. If then during the second year (say after 15 months) your income increased, would you have to inform the OR and could an IPA/IPO be set up after the first year (and following discharge)?
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| 4 L A T E S T R E P L I E S (Newest First) |
| Skippy |
Posted - 22 August 2010 : 22:13:39
I didn't keep any receipts. The only time it would be useful is if you need to have your IPA reassessed if your expenditure had increased dramatically.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| Searcher |
Posted - 22 August 2010 : 22:08:57
quote:
Originally posted by debtinfo
once the budget is agreed then you can spend the money as you see fit, The budget is just to see how much (if anything) you need to pay and as long as they get their money on time they are happy
Just a quick point - I presume therefore that there is no requirement to keep all receipts (including cash ones) for expenditure (other than obviously anything that is of a business nature)? |
| Searcher |
Posted - 22 August 2010 : 20:57:52
Hi Debtinfo
Many thanks for explaining this, and in under 20mins. It is much appreciated and has been really helpful.  |
| debtinfo |
Posted - 22 August 2010 : 20:46:11
1) yes the total household outgoings
2) There are no allowances, only guidelines for the Official Receiver. The OR can break those guidelines (either more or less) whenever they want as long as a good reason is presented, you should always put down what you need not whatever anyone else may say is the allowance
3) no, once the budget is agreed then you can spend the money as you see fit, The budget is just to see how much (if anything) you need to pay and as long as they get their money on time they are happy
4)If you are going to be getting them then it is fine to put down, They are allowed because they are classed as essential, even if you have missed out in the past because you could not afford them the OR will understand if you want to make sure you can get these things now.
5)You enter your net income in the income part so this should be after all business related expenses, tax and NI have already been taken out.
6)Yes you enter what you plan to spend, It is ok to have a small deficit as the OR will appreciate that you may have to budget better but if you have a large deficit then the OR is going to be concerned about how you will pay for everything as you will no longer have any recourse to credit
7) Any personal household items you sold would not have to be declared as they are exempt from the bankruptcy any way, If you ran it like a business buying and selling then you would need to declare that income.
8) If you dont have an IPA by the time you are discharged then you dont have to declare your income after you are discharged at all |
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