Pets – Allowable expenses in bankruptcy
- 23 Jul 2022
It is important to include a sufficient allowance to pay for your pets in your bankruptcy living expenses budget. But what level of expenditure is reasonable and what amounts are not allowed?
Included in this article:
- How much can you include for pets in your bankruptcy living expenses?
- Can pet insurance and and vets bills be included?
- What if your pets cost too much?
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How much can you include for pets in your bankruptcy living expenses?
If you have family pets, you must make sure you include a reasonable amount for their upkeep in your bankruptcy living expenses budget.
The main expenses item for animals such as dogs and cats is normally food. However, smaller animals such as rabbits and Guinea pigs require other items on a regular basis such as new bedding.
The amount you can include will vary significantly between the type and size of pets you have. However the following gives a good guide of what the Official Receiver will allow:
Dog Food
Between £10-£20 per week (£45-£90/mth) per animal depending on the size
Cat Food
Between £5-£10 per week (£20-£45/mth) per animal depending on the size
Rabbit / Guinea Pig
£5-£10 per week (£20-£45/mth) per animal including both food and bedding
It is very for the Official Receiver to check whether or not you actually have the pets you say you have. However, they will look at the budget you include and take a view as to whether it seems reasonable given your wider circumstances.
Can pet insurance and vets bills be included?
On top of the food bills, keeping your pets will usually involve other costs.
You should provision a monthly amount to cover vets bills. Normally this is not for any specific illness your animals may have. Rather it is to cover the amounts you pay either monthly or quarterly to cover things like dog worming or cat flea treatments.
Generally speaking it is reasonable to budget £5-£10/mth per animal to cover this.
You may have a monthly plan you pay directly to your vet which covers these type of things. The cost of this should be included in your budget.
You should also include a budget for pet insurance if you pay for it. The Official Receiver will recognise this and allow it as a legitimate expenditure. Around £20-£30/mth towards pet insurance is normally considered reasonable.
Your pets may be old or have certain medical conditions which cost more to treat. Where this is the case you should include these figures in your budget. The OR will consider these on a case by case basis.
What if your pets cost too much?
The Official Receiver will try to accommodate a reasonable living expenses budget for your pets. However, there is a limit to what they will accept. Where you need to spend significantly more than the allowances highlighted above, it is unlikely that these will be acceptable.
In these circumstances, the options available to you will depend on your wider financial circumstances.
First, you should consider whether or not it will be possible to cover the additional spending you need from your other allowances. For example, it is possible for you to make savings from your groceries which will make up the difference you need?
The main issue with this however, is that these other allowances are already likely to be relatively limited. Making any savings from them will therefore be hard.
Where it will simply not be possible to keep your pets based on the budgets allowed, realistically you then need to choose a different solution to deal with your debts. The most likely option will be a debt management plan (DMP).
A DMP is an informal solution. You are allowed far more flexibility in your living expenses than if you go bankrupt or use an IVA. However, the major downside is that you have to maintain monthly payments until what you owe is paid or settled in full. This could take a number of years. That said, there is nothing to stop you starting with a DMP and then switching to bankruptcy later if your situation changes.
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