List of what you are entitled to

[matthews15]

Hi
Can someone give me the list of what you are entitled to when going bankrupt like how much for hair . Birthdays . Dentist ect ..
Thanks

[Sam Hawkins]

Hi Matthews15

I used to be an senior examiner at the Insolvency Service many years ago and often accepted household expenditure was down to the individual examiner subject to the accepted guidelines.

There will be some scope allowed for reasonable expenditure and regional variations. There is a spreadsheet on the website below but it is not very helpful but may give you a start.

As a Trustee and Nominee/Supervisor I always look at the circumstances and what has been spent historically. Some IPs will not allow certain items and some items are specifically excluded as being reasonable.

Gym membership and Sky TV are always contentious especially as there is a contract which needs to be breached if the IP will not allow it.

Hair, dentist costs, school trips etc should all be acceptable provied they are within reason.

In bankruptcy if you have surplus income you may have to sign up to an Income Payments Agreement which lasts 3 years. Have you considered all your alternatives ?

Hope this helps, Sam

www.insolvency.gov.uk/.../Household%20Expenditur.xls


http://www.insolvencydirect.bis.gov.uk/ ... part_4.htm

[MelanieGiles]

Assuming your query relates to an IVA rather than bankruptcy, Matthew, Insolvency Practitioners do not set the expenditure allowances for their clients, rather these are set by creditors.

Under the terms of the IVA Protocol, and through years of custom and practice, persons wishing to have an IVA accepted are required to follow guideline based expenditure either set by the Consumer Credit Counselling Service or the Common Financial Statement. Creditors will allow overspends, providing their customers can provide explanations for the additional monies - such as dietry requirements, medical conditions etc.

If you have appointed someone to act for you, they will be able to take you through your own actual expenditure on an item by item basis, and will advice you whether you fit within the guidelines. If you have higher expenditure in certain areas, and analysis of that - supported by historical documentation - may be required.

I am often asked whether there is an allowance for birthdays and Christmas. Sadly, creditors do not recognise these important family events as forming part of a customer's essential expenditure - however you will be allowed a sports, hobbies and entertainments budget which could be saved up over the year to put towards this. In addition, if you earn overtime, commissions or bonuses during the year, you will be allowed to keep a proportion of these monies which can also be saved up.

My own clients tell me that whilst it is hard living on a budget, the benefit of not having creditor pressure is far better. And many of them do manage to take a modest family holiday as well, from saved allowances or additional earnings received during the year.