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Help. Advice needed re: Cars
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[Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 4500 £4037 based on £72kpa (that includes the car allowance) - unless he is claiming tax relief on stuff I do not know about (www.thesalarycalculator.co.uk)
Partners monthly income after tax....... 0
Benefits................................ 72
Other income............................ 533 £0 - as the car allowance will be included in salary as its taxable (benefit in kind sort of thing). If your Ex is not paying any maintainance at present, then leave it all off.
Total monthly income.................... 5105 £4110
Monthly Expense Details
Mortgage................................ 2501 £0
Secured loan repayments................. 1286 £0
Rent.................................... 0 £1000
Management charge (leasehold property).. 0
Council tax............................. 187 Is this for your rented property ONLY??
Electricity............................. 80
Gas..................................... 50 £80 - Entering into Winter then this is going to be higher cost
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 40 £60 - Now, Sky and internet are not allowed on an SOA as seperate units, but you can have a "package" that includes everything together if cheaper. You can also argue that the internet is essential for sons homework/revision - it is necessary for some schools now.
Mobile phone............................ 10 For you and Son? I assume OH will get a company one - but for 2, still up it to £25pm
TV Licence.............................. 11 £12 - its nearer to this, so round it.
Satellite/Cable TV...................... 21 £0 Not allowed on SOA in its own right
Internet Services....................... 0
Groceries etc. ......................... 400 £500 - nothing ventured, nothing gained, but your OR may well reduce this.
Clothing................................ 50 £100 - again, your OR may reduce it, but up it anyway.
Petrol/diesel........................... 40 £100 - You can get away with upping this for your car. As mentioned, you have school runs, housekeeping trips, trips to see and care for your other son etc. And as you are not likely to be able to keep your newer car, an older one is going to use up more petrol.
Road tax................................ 10
Car Insurance........................... 20 Cor..., I wish!
Car maintenance (including MOT)......... 10 Like the previous comment, I think you should up this - a new car is not going to cost a lot, but an older one will.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14 Any optical?
Pet insurance/vet bills................. 10
Buildings insurance..................... 44 £0 - as you wont own the repo place.
Contents insurance...................... 26
Life assurance ......................... 29
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 £0 This is not allowed. Most ORs allow a small holiday fund though, so change it to that
Haircuts................................ 0 £25 for the 3 of you is acceptable
Entertainment........................... 0
Holiday................................. 0 £50 - as mentioned, most allow a fund. You do not have to take the holiday (!) but its an amount you are allowed to claim.
Emergency fund.......................... 0
Dry Cleaning ............................... £25 As your OH has a high-flying job so needs to look the part etc.
After School Child Activites ............... £25 (Your son is still allowed hobbies and should not suffer for parental issues.)
Total monthly expenses.................. 4929 £2428
So - Income 4110 less outgoings of 2428 leaves a surplus of £1610 (this is because I have disallowed the child benefit - that is not included when you work out an IPA)
The OR will take 70% of this surplus to service your debts £1127. Leaving you with almost £555 per month for whatever you what to do with it. Its a lot less that you are paying towards your debts now. (And is approximate derived from what the OR may allow you for expenses).
An IPA - Income Payment Agreement is payable for 3 years. After that every penny is yours. Its an Agreement, so you need to agree it with your OR and question every penny. Although I mentioned previously about not sustaining lifestyles, you are still allowed a life in bankruptcy.0 -
do your SOA again with hubbies income (inc £6300 car allowance and £66,000 wages) your income, show only rent, no cars or any debts, i think you may have a IPO shocker coming...Now we all know how it felt to play in the band on the Titanic...0
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Monthly income after tax................ 4037
Partners monthly income after tax....... 0
Benefits................................ 72
Other income............................ 0
Total monthly income.................... 4109
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 187
Electricity............................. 80
Gas..................................... 80
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 60
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 26
Life assurance ......................... 29
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
After School Activities................. 25
Dry Cleaning............................ 25
Total monthly expenses.................. 2439
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
No Secured Debt
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-
Monthly Budget Summary
Total monthly income.................... 4,109
Expenses (including secured debts)....... 2,439
Available for debt repayments........... 1,670
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 1,670
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -0
Net Assets.............................. 0
Based on your calulations which I have done again I will be left with 501 per month to do whatever with if the OR takes 70% is that the normal rate or could they take more?0 -
70% is maximum rate that they will take. It varies from 50% to 70% but its capped at 70%.
Your child benefit is not taken into consideration when they work out an IPA but you must still list it on an SOA.
This is all approximate anyway but its the sort of ballpark figures you should look at.
Now. Another point - as well as you will probably lose your car, on the QT, if you are not going to be paying mortgage and stuff for a few months then you should be able to pop a few hundred pounds under the mattress to buy a cheaper, old car - plus you need to save for the bankruptcy fees - this will be £1000 for the both of you (not each, but in total).
Finally - your current property. Have you checked the contract about bankruptcy? Some ( a few) have BR clauses in them and if thats the case then your OR has an obligation to tell your landlord. Depending on what your contract says about this, it could be a potential issue. Not many people have issues though with landlords, especially in the current financial climate but its something you need to be aware of.0 -
at last we are getting to the conclusion, i wasnt far wrong really.
of course you could elect to try an IVA (as you arent in arrears with anything), and sell off your properties, keep hubbies car and muddle throughNow we all know how it felt to play in the band on the Titanic...0 -
With this kind of surplus each month, I would urge you to take further advice. It may be that a DMP or IVA would be more suitable than BR for you. Am sure someone will be along soon with the links that I haven't got :rolleyes:0
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Both cars are on HP and no I do not have the money to buy another car. A few hundred pound run around is not an option.
This is the kind of comment that gets us bankrupts a bad name!
Millions of people manage perfectly well in such cars. You sound as if you think you are too good for that.
You're going bust, for God's sake! Of course you are going to have to drive an old banger for a few years. The chances of being able to keep the second car are nil.
A bit of advice;
The way to get through the bankruptcy experience is to forget entirely the materialistic lifestyle that got you into the mess. Relish the liberating feeling of being debt-free and learn to enjoy the simple and cheaper things in life.
That includes a 'few hundred pound run around'
Within a few months the idea of spending hundreds of pounds a month on a car will be plain to you as the sheer madness that it is.0 -
This is the kind of comment that gets us bankrupts a bad name!
Millions of people manage perfectly well in such cars. You sound as if you think you are too good for that. You have no idea mate, I grew up on a council estate in London without a pot to p*** in so don't tell me I think I am too good for an old car. I have had plenty of old cars because my husband has always had a decent car. The one I had before this was a "P" plate escort, which my daughter is driving. My point is why get an old car if I can keep the one I have yes it will cost me in repayments but that could be less than an what an old car may cost me in repairs. My insurance is very cheap, my road tax is cheap. Why risk an older car when I have a new one????
You're going bust, for God's sake! Of course you are going to have to drive an old banger for a few years. The chances of being able to keep the second car are nil.
A bit of advice;
The way to get through the bankruptcy experience is to forget entirely the materialistic lifestyle that got you into the mess. If my lifestyle was materialistic then why have I no assets, maybe you should think before you speak! Relish the liberating feeling of being debt-free and learn to enjoy the simple and cheaper things in life. I am not even going to answer that because I am not looking forward to what the next few months has in store for us.
That includes a 'few hundred pound run around'
Within a few months the idea of spending hundreds of pounds a month on a car will be plain to you as the sheer madness that it is.
You don't just change over night you know. I have not made any decisions lightly trust me! I suppose I could borrow money from my daughter but how would I pay her back she will be on maternity leave soon how could I even ask? Based on your theory I buy a run around fine what do I do when it goes wrong how do I afford to fix it.0 -
With this kind of surplus each month, I would urge you to take further advice. It may be that a DMP or IVA would be more suitable than BR for you. Am sure someone will be along soon with the links that I haven't got :rolleyes:
Thanks I am seeing the insovency practitioner again next week to see where we go from here, she thinks its our only option an IVA won't get rid of the secured debts or the personal guarantees the bank has on us.0 -
Please do not go with an IVA factory. The ones that advertise on the TV and in papers etc. Make sure you get independant advice from CCCS (who operate their own IVA's) or National Debtline who will put you in touch with a reputable firm if they feel an IVA is the way to go.Namaste DeeDee x0
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