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digman
Junior Member
United Kingdom
319 Posts |
 Posted - 21 September 2008 : 21:39:08
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Hi all , My question is re section 7 on the SoA .. outgoings .
My wife and myself are going BR soon and are filling the forms in ( not online ) . In the outgoings section do i put mine in and my wife put hers in or is it the Household outgings ? as i pay some bills and she pays the others ?
Also If its the household outgoings ( for 2 adults and 3 kids ( 17 / 9 / 4 )) would these sort of things be put in the < other essential payments > ;-
home insurance £12
TV licence £12
Life ins £26
car ins £20
scooter ins £10
union £5
hairdressing £10
dentist £10
school trips £10
medical/prescriptions £7
internet £21
entertainment £25
this is all our monthly stuff as a household together with the other things that have specific headings on the SoA
total outgoings £2330
total income my wage £1600 approx
wifes wage £560 approx
child benefit £170
total £2330
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 22:06:17
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Hi digman,
Hubby and I went BR a couple of weeks ago now. We put the household income on both (rent, housekeeping etc) and our own expenditure (my travel to work, hubby's car expenses etc) on our own SoA's.
With regards to the expenses, yes those things will go in the box for other essentials. You wouldn't usually be allowed an allowance for entertainment, though, or internet (unless it is essential for work). You can try putting a holiday allowance down though (we put it under 'modest UK break'), and hairdressing can go up to £35 (10 per adult, 5 per child). Put £20 for the hol maybe, (you could put more, but this will take your expenses up to the limit of your income anyway)
Hope that helps a little!
C. x |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 21 September 2008 : 22:12:39
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Thanks for taking time to reply C . Have been following your posts for a while and have gleaned a lot of info from your posts , Thanks , and best of luck ,
Andy. |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 22:17:40
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You're welcome, Andy!
Keep asking the questions (I know I did!!!-those poor experts! :-))
C. x |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 22:24:24
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Hi again Andy,
I don't think it's wise for your expenditure to come out as greater than your income as that could suggest you'd still be insolvent even after BR! I'd just change internet and entertainment to higher hairdressing and a little for a hol to make it balance.
C. x |
Edited by - BankruptC on 21 September 2008 22:26:40 |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 21 September 2008 : 22:26:41
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| Cheers c. How much under the income would it be advisable to be on the expenditure ?? |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 22:31:27
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Well just put what you think it is reasonable to spend on each thing. As long as it isn't likely to be brought down too much by the OR (so your DI's over £100), you won't get an IPA. Just check you're not being overgenerous to yourselves in any of the areas, especially as you have room for manoeuvre on things like hol.
Hope that makes sense!:-)
C. x |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 21 September 2008 : 22:41:48
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| Yeah i understand what you are saying , thanks , but just to clarify though do we put the exp down even though it may not or will not be allowed ? I think this could be one of the more challenging aspects to not try to claim too much but also not to try to claim too little . More stress !!! |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 22:49:02
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From what you say you seem to be nearly there Andy, cos your original figures balanced exactly. They just seem to need tweaking slightly using things you are likely to be allowed (eg hol, or upping clothes)
We have put down things we may not be allowed (xmas, contingency etc), but only because we had extra. It looks like you won't have to.
Hope it's becoming clearer! I do feel like you're nearly there with it. :-)
C. x |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 21 September 2008 : 23:23:00
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Right then C. and any one else for that matter , how does this look ??
Mortgage £571 + £575 secured loan
Gas / electric £98
Water £33
Food / cleaning £430
Clothing £80
Travel ( petrol ) £50
Phone £50
Internet £21
Council tax £96
Home ins £12
Life ins £26
Car ins £20
Scooter ins £10
Repairs / Mot / Servicing £30
Tv licence £12
Car tax £17
Bike tax £1.50
Scooter finance £56 ( 7 payments left out of 30 )
Hairdressing £10
Dentist £10
School trips £5
British gas service contract £17
Christmas / Emergencies £50
TOTAL ----- £ 2280.5
INCOME £1570 + £560 wife wages + £170 child benefit
surplus of £ 19.50
Any thoughts please ?? |
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John
New Member
United Kingdom
73 Posts |
Posted - 21 September 2008 : 23:28:39
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Hi
as long as the expenditures you are claiming are within the guidelines followed by the OR I would not worry if your total expenditure figure exceeds your income.
This will stand you in good stead if you receive a pay rise or similar before your discharge.
It would look worse if you were to declare an increase in income and when the OR requests a revised I&E you up the expenditure too, he will want to know why so best to put all of the expenditures in first time around thus avoiding potential IPA later.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 23:33:42
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Hi again Andy,
Most of it looks ok, but as Paul said, I'd take out internet and up clothing to £100. (You can still pay for your internet out of any surplus or any saving you can make on food, clothes etc). I'd also take out Christmas and Emergency, put hairdressing up to £20 and £30 for 'modest uk break' (much more likely to be allowed). That leaves £20.50 surplus (I think-it IS late! :-) )
Hope that helps?
C. x |
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 23:37:09
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Hi John,
I read that people could be refused BR if it would mean they were still insolvent after BR, in that they still wouldn't be able to cover 'essential expenditure'. Is that wrong?
C. x |
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digman
Junior Member
United Kingdom
319 Posts |
Posted - 21 September 2008 : 23:45:36
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Cheers to C. & John for your input . Will do what you suggest C. and take it from there .
Only thing to cause concern would be wouldnt the OR question my past DD's for internet if i dont put it on expenditure ?? Just a thought !!
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BankruptC
Senior Member
1030 Posts |
Posted - 21 September 2008 : 23:51:19
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Hi again,
No, I don't think so, cos you are only claiming for 'essential' expenses on the form. You are allowed to use your surplus for whatever you like.
C. x |
Edited by - BankruptC on 21 September 2008 23:54:13 |
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John
New Member
United Kingdom
73 Posts |
Posted - 22 September 2008 : 07:19:36
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Hi CG
I believe it is wrong, if that were the case what does one do unless your income matches your expenditure, someone in negative DI is just as insolvent, if not more so.When I declared BR it was immediately following the collapse of our business which meant we had no income whatsoever.
The point is that the OR has guidelines for allowances and if you happen to live well within those limits then good for you, the DI should then be yours and not paid into an IPA. In this way everyone is treated equally.
If everyone disclosed exactly what they spent i.e. one family of 4 survives on £300 per month housekeeping and another £600, should the 1st family then be penalised to the same degree?
That would make the application of IPA's totally unfair. Of course there will always be expenditures which fluctuate and are counted as personal to each case such as rent, council tax etc. But if £600 is allowable then no IPA, if £300 is actually spent then should this mean an IPA or £300 DI for the BR to direct where he/she chooses?
When undischarged but not in an IPA any salary increase will equal an IPA unless you get the expenditure figure at the right level from the outset. In this way it's dangerous to assume that as long as I&E are equal you will avoid an IPA. A salary increase could then potentially mean an IPA where it could have been legitimately avoided.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 22 September 2008 07:21:39 |
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section 7 on the SoA ?
