reason for debt on soa forms

tululajac · 4 February 2009 at 11:49AM

hello me again feel like i could not survice without this sire at moment

me and OH are going to court 9.00am tomorrow and am just putting finish to forms
reason why in difficulty?-i presume i cannot just say borrowed toom uch, spent too much, borrowed more to pay off previous money and ended up in a mess
what do they want to know? i already feel like an idiot can i just put that down?? will they accept a reason like 'i grew up in the 80's where the goverment basically said spend if you can' and enede up in this mess now!![am i allowed to blame the government? that seems like a good idea-all the financial institutions do]

anyway if anyone got any feedback appreciated
cheers

notfes53 · 4 February 2009 at 3:09PM

tululajac

I understand how tough it is to write this bit:

I set mine out as a chronology and noted some of the key reasons why the debts were incurred, or if there had been problems such as illness or redundancy. Here are some key points from my SOA:

1999 to 2001: I was in a well paid job between 1999 and 2001 and became used to a high standard of living. I was relocated by my employer and we moved to an expensive area for the good local state schools. I took out the maximum mortgage I could at 100% LTV from xxxx, and had to take cash advances of a further £8000 on credit cards to meet the purchase price of the house.

End of 2001: At the end of 2001 my job at zzz was made redundant and I left employment at the end of March 2002. Despite applying for many jobs, I was out of full-time employment for 11 months.

2002: I was confident that I would find similar employment quickly (not had a problem before). Regrettably, I did not cut back on previous and familiar high levels of expenditure. During this time I exhausted all redundancy monies and any savings, and also started to use credit cards to bridge the gap between income and expenditure.

2003: I sold my car to raise cash. In order to get any regular income I finally took a job as a vvvvvv on a take home pay of about £210 per week.

Within 6 weeks I was promoted to a managerial role at a monthly take home of about £2200. This was still substantially below the salary I had been on in 2001, yet I still failed to realise that our spending exceeded our income.

2004: I re-mortgaged in order to pay off some cards, but still failed to budget as well as I should, and card borrowing crept up to bridge the monthly overspend.

2005-06: In November I was diagnosed with cancer and was off work for nearly 6 months. During this time I had major surgery and a 6-month course of chemotherapy. On leaving hospital I consolidated most of my credit card balances with a £HUGE secured loan from Firstplus, as well as a bank loan for £BIG. Owing to my illness and feeling very poorly during the chemotherapy I neglected to manage my finances well.

2007: I sold our house and was able pay back the First plus loan and redeem the (re)-mortgage. I moved us to a smaller house, still carrying a large mortgage and a number of credit card debts. I took another loan to pay for home improvements and was still not keeping monthly expenditure below income, and began to rely on credit cards to pay off other cards - leading to an inevitable spiralling of debt.

In Sept 2007, a LLLL Bank manager persuaded me to take out a £25,000 consolidation loan.

2008: In March I consulted CCCS, who suggested the IVA route. I decided instead to try an alternative route - to sell our house and for my partner to obtain more regular contracted employment. We sold our house in July 2008, and my partner secured a contract in October. I thought that with careful management I could reduce the debt levels. Unfortunately, and with hindsight I now realise that things had probably spiralled too far for me to reclaim.

On taking further specialist advice I finally realised on nnth December that I was insolvent and had no prospects of paying my debts off via an IVA before 65.

The Judge read everything I had put down before I even entered the court room. I was in there for three minutes and the judge was very nice to me, clearly showing that they had read my statement and understood it.

You are bound to feel that you are to blame (at least in part) for what has happened, but I do not think that you can blame the banks or the government as nobody ever makes us borrow or spend, and you want the officials who deal with you to see that you shouldering the responsibility and that you are sorry for the mess that you've got into.

Hope that this helps a bit.

And good luck for tomorrow - it will be a new beginning for you and you will lead a better, stress-free life in future, knowing that you are a good debt-free person!

reason for debt on soa forms

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