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sarahatdigs
Junior Member
United Kingdom
181 Posts |
 Posted - 17 June 2008 : 10:39:13
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hi,( a bit of background )
my partner and i have our appointment with the court clerk to present our petitions of bankruptcy this monday coming .
we dont have any assets, but chose to try an iva first for moral reasons .
we tried to enter this iva last december but it didnt work. To offer 25p/£ our budget was really tight. On the day the IP's office didnt call us until after the meeting had finished and said they wanted another £40/month. That was just not financialy possible. We couldnt argue that because the meeting was over So it now looks on paper like we failed. My question is will the court frown on this? will they expect us to pay any money each month? and because we went through an organisation to arrange the IVA and was talked through all our options etc will that be considered enough debt advise for the judge?
I have now had to give up work so an IVA is now not an option any more.
our budget
income £1134 + child benefit £136 +
tax credit £377 = 1647
rent £382
council £95
water £23
tv lic £12
gas £10
elec £120
phone £20
household £540
haircuts £26
prescriptions £5
optical and dental £16
school dinners £45
travelling to work etc £40 (we dont have a car)
annual holiday for 4 £80
clothing allow £80
contingency £50
pets food and vets £25
that leaves us with £78
all these figures are based monthly ie. we get 13 payments of tax credits but i times by 13 and divided by 12 and did the same with all the bills , this means at the moment on a normal month we only have £12 left.
would really appreciate any advise beforewe go on monday
thanks
sarah
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 11:52:47
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Hi Sarah,
As the OR examines our conduct prior to and during the bankruptcy, the fact that you tries the IVA route will be looked on favourably.
With regard to your expenditure, how many of you are in the household?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sarahatdigs
Junior Member
United Kingdom
181 Posts |
Posted - 17 June 2008 : 12:22:21
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| Hi Julian , there is myself , my partner and two boys 6 and 8. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 12:39:16
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Hi Sarah,
The only thing that immediately jumps out at me is the allowance for holiday. Other than that, your expenditure seems reasonable to me.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sarahatdigs
Junior Member
United Kingdom
181 Posts |
Posted - 17 June 2008 : 12:48:21
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Ok,
we only have a 5 day break at centre parcs, thats about how much we spend and i found that figure on this web site that said anything up to £960 per annumm was allowed per family of 4. Do you think that this allowance is too much. i havent allowed for mobile phones or the childrens karate class, would i be able to add these at the OR meeting if he felt the holiday allowance was too much? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 12:50:25
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Hi Sarah,
I think given your circumstances, it would be best to list everything down. Bear in mind, the worst-case scenario is the OR doesn't allow the expenditure and you have to go without for 12 months.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sarahatdigs
Junior Member
United Kingdom
181 Posts |
Posted - 17 June 2008 : 12:56:30
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| I thought if they decided we had surplus income we had to make payements for 3 years? |
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Dee
Junior Member
United Kingdom
215 Posts |
Posted - 17 June 2008 : 13:00:36
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Hi Sarah
They didn't count my Child benefit and I was allowed £50 for holidays. Some of my figures were a little lower than yours but others higher. Look at my allowances on the post headed OR interview - good news. I have 3 children 7,8 & 18 and then there is my husband and me.
Dee |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 13:02:06
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Hi Sarah,
Indeed, if you have in excess of £100 a month disposable income, then the OR will get an IPA/IPO for 3 years. However, although the allowancws for expenditure in BR are far more reasonable and realistic than in an IVA, there are limits. Put yourself in the position of the OR and/or creditors ... how would you feel having the debt written off knowing the debtor was still spending £1000 a year on holidays?
As I said, the key here is honesty. put down your current expendiyure as it really is and talk to the OR about it.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sarahatdigs
Junior Member
United Kingdom
181 Posts |
Posted - 17 June 2008 : 13:53:56
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Thanks Dee, if thats the case then we definately dont have any money left for an ipa/ipo.
I will post when its all over.
thanks again
sarah |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
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tess121068
Junior Member
211 Posts |
Posted - 17 June 2008 : 17:01:03
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I was told by my examiner that Child benefit and any DLA wasn't included but Tax Credits were.
I was also told that childrens activities within reason are taken as a valid expense.
Hope this helps |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 17:01:58
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Hi Tess,
Thanks for the info!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sarahatdigs
Junior Member
United Kingdom
181 Posts |
Posted - 10 July 2008 : 10:23:40
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Hello again, just had my OR interview and all my expenditure was accepted , the only money we will have to pay is the tax my partner was paying for the rest of this tax year. The lady was lovely and it wasnt half as bad as i thought it was going to be.
what a relief ,we can finally start a fresh.
thanks for all the advise everyone lol x
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 10 July 2008 : 13:02:03
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That's great news, congratulations! Welcome to the start of your new debt-free life :)
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Topic |
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Is my budget going to be allowed
