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T O P I C R E V I E W
penny007
Posted - 23 March 2009 : 20:38:56 HI everyone,
I have a question with regards to how much the Court will allow us as spare income after all expenditure.
We are moving house and will be having a recalculation done, our costs will increase slightly, my Husband is planning to return to his 2nd job part time to help with this but dont want to earn to much and end up paying it all back. We dont currently make any monthly payments to the court.
Any help would be gratefully received!. Thanks
1 L A T E S T R E P L I E S (Newest First)
John
Posted - 23 March 2009 : 21:30:49 Hi
I assume you are already bankrupt but not paying into an IPA.
Technically you are allowed £99 per month disposable income after all agreed expenditure costs have been met.At £100 you would expect an IPA at 50% leaving you £50 with the OR claiming the other £50.
Care needs to be taken here. If your original SoA showed for example £30 DI then the OR would not bother proposing an IPA. Even if the OR thought that some of your original claims were a little high, unless he reduced sufficiently to invoke an IPA he would probably not question any of the individual claims.
If on your revised I&E the elements he had previously thought were high were left at the same level but your income increased to show a DI of £80 the OR then only has to disallow £20 of the expenditure claim and hey presto you're paying a minimum £50 per month for 3 years.
Do not sail close to the wind is therefore the order of the day. If you want to earn a higher income then great and if it's through a 2nd job then good for you.
But we can't have it both ways.
The way an IPA works if your DI is £100 then you will have £50 spare per month. If your DI is £500 you will keep £150. So you could earn £400 more by working a 2nd job and get to keep £100 of it.
I understand the principle but hardly an incentive.
