having to go BR...a few questions

[no money eva]

My IVA started 1 May paid May, June, July and missed August will have to miss Sept. Will the balance of my BR be the total amount owing or the balance agreed with the IVA, what figures would I need to put down on forms?

I have a cashminder account presume I would be able to keep this.

I am separating from hubby he is moving out, will the OR look badly on this? Hubby seems to think so.

Do they take benefits into account in expend?

Would I qualify for reduction in fees? I earn £6k for part time work.

Many thanks in advance, probably will be back with more.

[Moneystinks]

Sorry to hear things have not worked out for you. I too loked at BR before my IVA and I spoke with Melanie of course but I also had a chat with Paul Johns and Andy Davie - both were really helpful.

I hope you get sorted soon. XX

[chris.g]

Sorry your IVA hasn't worked out for you. Firstly the OR should have no opinion on your hubby moving out and will not look badly on it, it's personal between you and your hubby(as long as you haven't just come to the decision for financial reasons)
You will need to contact your ip to discuss your situation, they may have funds set aside for br. You will need to apply to the court for a reduction in fees, it's only the court fees that can be waivered, not the OR fees.
You will need to put down the total of the debts, not what would have been paid in an IVA so when you contact your ip you will need to get this from them, I'm assuming they will have the totals.
The OR can take benefits into account when calculating income, it really depends on the OR. Any income is subject to being included if they see fit.
You should be ok with the cashminder account, we had our's when we filed and it wasn't affected in anyway.

[MelanieGiles]

You will need to include the full value of your debts in your bankruptcy application.

So long as the bank agree for you to keep your bank account that should be OK.

The OR will be indifferent as to whether you are separating. They do not get involved in domestic issues.

Benefits are not usually taken into account for the purpose of calculating disposable income.

You will not qualify for reduced fees if you have some form of employment.

[chris.g]

Just about the benefits Melanie, the OR dealing with our br's used hubby's WTC and my child maintenance when calculating our income. When I questioned this she told me that any income, even child benefit could be used if she saw fit......

[MelanieGiles]

WFTC and child maintenance are not classed at benefits Chris. I think that you had an inexperienced examiner, as child benefit is not taken into account for the purposes of calculating disposable income.

[no money eva]

Thanks for your replies. If the house which has negative equity in it sells for less than the mortgage what happens as regards the BR would the shortfall be included?

I have emailed Payplan and asked for a call tommorrow, she knows my situation so will come as no surprise to her.

Thanks again for your help

[drowning-mummy]

Going back to what Melanie has just said Chris, that is exactly what John has said over on the BR forum.
Child Tax Credit, Working Family Tax Credit and Child Maintenance are NOT benefits and therefore are used to calculate your income.
Child Benefit IS a benefit and should not be used towards your income.

Did they include the CB?

[no money eva]

Does anyone know if house was sold for less than mortgage with sol fees and agents etc, whether the shortfall would be included in BR.

Thanks for your help

NME x

[chris.g]

Yes it would, that's exactly what happened to us. There was a shortfall on the mortgage, secured loan and charge on the property, I phoned the OR and they confirmed that all debts prior to br are captured.

[no money eva]

Thank you Chris.
I think you mentioned earlier if doing it for financial reasons OR may look badly on it. I have instigated the breakup in our relationship but I have lived on eggshells for 15 years, some violence and am not standing for it anymore the kids deserve better. I will be stronger for it, and if BR is the route I have to take to acheive stability sobeit. I hope the OR would be sympathic in that respect. I have done the DMP, IVA so this is really the last resort.

Thank you for your support, it is very much appreciated. It is going to be a long haul but it will be worth it to make my kids happy.

Regards
NME x

[chris.g]

DM, no they didn't include it but threatened to. I take your point about them not being benefits but we were informed, wrongly it seems, by the CAB that they would not include them. Funny thing is they didn't include the Child Tax Credit.....
It does seem as if Melanie has hit the nail on the head about the OR being inexperienced. Reading on both forums, there are a lot of things that have been done different from the norm.
As someone once said on the forum, 'it's the luck of the draw, you either get a fair OR or not, depends on who's desk your file falls on!!'

[chris.g]

NME, no-one should live on egg shells, I did it years and you get so tired and worn down by it all......
You're doing the right thing for you and your kids, you will be fine. It is amazing how we cope when you have to, we are wonderful, strong creatures...[:)]
The OR will be fine about your situation, they are not there to judge you on your personal life, but to sort out your bankruptcy.
This will probably be the fresh start to your life that you and your kids need, [:)]

[no money eva]

i have just worked out a quick expenditure including stuff that you are allowed in BR and it is a negative figure by about £60.00. I am guessing this would mean i wouldnt get an IPA I have included the WTFC in this, if i include CB it would leave £65.00 surplus.

thanks for your help.

[chris.g]

You have to have £99+ disposable income for them to request an IPA. Remember to put down ALL your expenditure, even down to window cleaners and haircuts....it all adds up.
Send me an email, click the little bluey/greeny man and it'll give my address and I'll send you a file with the allowances.