I&E-partners credit commitments not allowed

[andymac]

Hi, the OR will not allow for my partners payments to her creditors in our I&E submission, is this normal?

By doing this, they are making our disposible income appear higher than it really is by quite along way.

They have taken our joint houshold liabilities, subtracted it from the household income, and then worked out that, from my earnings being higher than my partners, what my share of the surplus is.

Is ths the normal way, and why dont they allow her credit commitments? they could effectively force her into BR too!

[Adam Davies]

Hi
I have a feeling that it is correct.
Wait and see what Skippy or Melanie have to say
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Hi there

Your bankruptcy is personal to you, and your partner is therefore responsible for her creditor repayments directly. She must pay her creditors from her share of the disposable income, and OR's method of calculation is absolutely correct.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Skippy]

When I filled out my I & E I put down my total income and my partner's contribution to the household budget, not the amount he earns. I then listed only my outgoings in the outgoings part. The OR didn't take my partner's contribution into account when calculating my surplus.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Skippy]

Right, I had to ring the Insolvency Service to ask for a new IPOQ (mine's got mislaid in the move!) and I as I was a bit worried by this post I asked my case manager to clarify how the surplus is worked out.

When you are completing your I & E you need to put down the total that you earn, and the amount that your partner contributes to the household expenses, not the amount they actually earn. You then list only your expenses. They do not count your partner's contribution when working out your surplus.

Andymac, I would definitely query what you have been told as if your partner is't bankrupt then they shouldn't even be interested in her expenses, only in making sure that you both pay a fair amount and you're not supporting her at the expense of your creditors. Please let us know how you get on.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[queenie]

The OR generally pro-rata's income of two parties such as this. However, I would point out to them that much of your partners income isn't available to the household as it is tied up with her own creditor payments, and that as such you wish them to review the household disposable income.
Suggest to them what you beleive you can afford to pay and give valid reasons for this. Put it in writing and they should get back to you within 14 days.

Queenie

[andymac]

Thanks All:

I requested to know how they had come to the calculations thay had, which were emailed through to me yesterday.

Having spent some time reviewing this further, they have taken my partners salary, deducted her credit commitments, and then added the balance to ths household income. This, in my mind, is fair and correct. I have therefore accepted their proposal.

Thanks for your inputs.

[Skippy]

I'm glad you feel happier about the situation Andy.

Just one thing, when you say they have taken your partner's salary, deducted her credit commitments and added the balance to the household income have they taken into account her own living expenses - clothes, travel etc? The reason I am asking is that I was told yesterday that they only need to know my partner's contribution to the household, not his actual salary.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Nicki]

Just thought I would let you know I saw OR last Tuesday and he did not want my partners contribution amounts he actually wanted the actual take home pay and the split the expenses into proportions turns out It is 60 me / 40 my partner . hope this helps

[Skippy]

It seems that different OR's do things in different ways! Mine definitely said that they only wanted my partner's contribution, not his take home pay. I hope they don't change their mind when they receive the IPOQ as Dave is self employed and his salary varies from month to month.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/