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| T O P I C R E V I E W |
| andy b |
Posted - 04 January 2009 : 18:34:16
Hi there,
just going through my expenditure and I noticed that the guidelines for housekeeping for 2 adults and no children is £394 per month which seems quite high, ours is closer to £300. Should I put down something closer to £394 as opposed to tacking on holiday/emergency household repairs/dentist etc as other essential payments?
What would the safest course of action be?, obviously I'd sooner not have to pay any IPA.
thanks,
andy |
| 15 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 05 January 2009 : 16:45:07
Hi
for me, claiming allowances or utilising any piece of Insolvency Law is the right of us all.
After all, we should not increase our indebtedness whilst bankrupt but in certain circumstances it is permitted and therefore quite correct for any bankrupt to use the current legislation.
For example property.
Values continue to fall and yet a bankrupt is entitled to stay, even in negative equity, in a mortgaged property whilst bankrupt when that negative equity is increasing due to the present market situation. Secured borrowings are of course not included in bankruptcy but ever increasing negative equity is hardly secured is it?
And if so against what?
Rules are rules and if a bankrupt is able to meet mortgage repayments and the legislation says they can keep it then that's good enough for me even if, in reality, that bankrupt, by staying put, is effectvely increasing their debt for which there is no asset to set it against.
Guidelines are there for a reason, I just think once they are set there is nothing wrong with using them to your advantage where the opportunity arises.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Skippy |
Posted - 05 January 2009 : 16:38:40
My housekeeping allowance is £350 for 2 of us and we manage on that so I don't see the point of increasing it if I don't spend it. I personally would rather know that I've paid something back (albeit very little) as I borrowed the money in the first place.
I'm not for one minute saying people shouldn't claim benefits that they are entitled to, but surely exaggerating your expenditure so you either don't repay anything towards your debts, or reduce the amount you pay into an IPA is wrong.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
18 IPA payments to go! |
| andy b |
Posted - 05 January 2009 : 16:35:40
The point I was trying to clear up was not to try and wriggle out of paying an ipa but to get the forms right so I don't have to go back to the OR and ask them to modify them.
It seems a reasonable point to clear up because if your basic monthly expenditure is still more than your monthly income after your bankruptcy then it's reasonable for the OR to suggest that you're gonna end up back at square one sooner or later.
Andy |
| Needafriend |
Posted - 05 January 2009 : 16:26:25
I agree John
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
| John |
Posted - 05 January 2009 : 16:22:36
Hi
I agree if you can afford to then you should do so.
My point in my previous example is HOW we get ourselves into a position to repay some of the debt.
If it's because allowances compared to my income dictate that I should then fine.
My objection is when 2 parties are in exactly the same position but one pays and the other doesn't have to.
Much the same as with certain benefits, tax credits for example.
Are we saying that as, despite the fact I may qualify, that I shouldn't claim it as I seem to manage without?
When the guy next to me, in the same position, claims their entitlement.
As I have said it is an individuals decision but I believe we should all be treated fairly, and that means the same as each other.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Needafriend |
Posted - 05 January 2009 : 16:16:35
Oh right
We wondered thats all!
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
| RHB |
Posted - 05 January 2009 : 16:09:37
The point I was trying to make is that declaring bankruptcy doesn't mean you are entitled not to pay off any more of your debt IF you can afford to, hence IPAs etc. |
| Needafriend |
Posted - 05 January 2009 : 15:34:47
Hi Andy,
I agree RHB what do you mean?
Thanks
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
| andy b |
Posted - 05 January 2009 : 15:19:19
Sorry, could you explain please? |
| RHB |
Posted - 05 January 2009 : 14:52:27
Thing is though, if you have an IPA that is to pay for YOUR debt. And it won't pay for all of it either. |
| andy b |
Posted - 05 January 2009 : 14:41:49
ok, lovely.
I shall finish the forms today.
Regards,
Andy x |
| Skippy |
Posted - 05 January 2009 : 14:41:02
I see your point John, but I'd rather be honest about my expenditure.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
18 IPA payments to go! |
| Needafriend |
Posted - 05 January 2009 : 14:34:56
Hi Andy
I dont think so, that is what most of us have done. Thats why now we are insolvent.
Also before we went BR for 2 1/2 years we lived on about £30 per week food for 5 of us and now we have food in our cupboards and fridge and its great. I can also manage to buy some nice things too as i explained to my OR we have lived with little money so that the debts could be paid and on time.
LOL
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
| andy b |
Posted - 05 January 2009 : 14:23:43
So, just to labour the point for the final time as I want to get it right.
The OR won't find it odd if my monthly outgoings were £1300 but my monthly income was £950?
Regards,
Andy |
| John |
Posted - 05 January 2009 : 14:11:44
Hi
as I have said before, it is my opinion that you should claim the essential spending allowances available to you and to answer Skippy's earlier question, yes even if you are not spending as much as the allowance.
Obviously you cannot claim for things you don't have (vehicle expense when you don't run a car or pet insurance when you don't have a pet) but my personal view is this:-
2 families of Mum, Dad and 2 kids below 16 years old. They are neighbours, they both have identical income.
Both family incomes happen to equal the sum allowed for a family of 4 as essential expenditure in bankruptcy. Lets say for the sake of arguement that's £2000 per month.
Family one spends the full sum of £2000 per month on nothing other than the essential expenditures allowed.
Family two is very frugal with the use of utility supplies, they spend less on food, don't visit the hairdressers as they cut their own hair nor use the dry cleaners. They don't have a dental payment plan nor do they own a TV.
Family two is therefore able to live on, let's say, £1700 for the month.
In my opinion it is not right that the reward for family two for being so careful with their money is to give 50% of the remainder to the OR.
The OR will of course pick up on any regular expenditure not listed in an SoA from bank statements. They will also note if expenditure levels are not quite as high as claimed in the SoA.
They should also know that to question expenditure levels claimed, from this information, should only be done if an individual or overall expenditure claim is excessive.
Most OR's offices, in my opinion, are likely to agree with this and that is why examiners often INCREASE claims made by the bankrupt.
As always, ultimately the choice is yours.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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