First cut of SOA

korben556 · 21 November 2009 at 4:16PM

We have both decided to go BR and I hope I have got this right.

Well I hope we have got this somewhere near right.

Our home was repossessed and is in the process of being sold, we will have in the region of a £15,000 shortfall.

Any help is much appreciated.

Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 1130
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2710

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 795
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 65
Gas..................................... 60
Oil..................................... 0
Water rates............................. 68
Telephone (land line)................... 35
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 27 (both use for work and school)
Groceries etc. ......................... 550
Clothing................................ 120
Petrol/diesel........................... 220 (wife has to commute 50 miles a day,
£50 for me)
Road tax................................ 16
Car Insurance........................... 37
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 36
Childcare/nursery....................... 0
Other child related expenses............ 60 ( daily bus & Lunch)
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 5
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2357

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Bank - Joint...................10700.....50........0
Credit card - Wife.............1200......0.........0
Council Tax - Joint............600.......0.........0
Old Gas/Elec...................1900......0.........0
Credit card - Hus..............1500......0.........0
Carphone W - Hus...............165.......0.........0
Inland Rev - Hus...............55000.....0.........0
Balance 2nd ch Joint..........15000.....0.........0
School fees - Joint............350.......0.........0
Total unsecured debts..........86415.....50........-

Monthly Budget Summary
Total monthly income.................... 2,710
Expenses (including HP & secured debts). 2,357
Available for debt repayments........... 353
Monthly Uusecured debt repayments....... 50
Amount left after debt repayments....... 303[

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -86,415
Net Assets.............................. -85,615

Thanks in advance.

tigerfeet2006 · 21 November 2009 at 4:22PM

If you are both going BR you need 2 SoA's.

On each you need the joint household bills and the person's personal bills. The person's full income and the OH's contribution to the joint housebills.

Hope that helps. I have to pop off for a while but will be back later

dojoman · 21 November 2009 at 4:34PM

Hi Korben, I am in the process of doing both our SOA`s like you I posted 1 SOA for both of us but as Tiger has said you need to do 2. It has taken me ages to get my head round this but I think I have just about go it. Just keep posting on here, someone will always be able to point you in the right direction..

korben556 · 21 November 2009 at 4:51PM

OK, hopefully might be nearer right?

Me
Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 795
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 65
Gas..................................... 60
Oil..................................... 0
Water rates............................. 68
Telephone (land line)................... 35
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 27 (work,School)
Groceries etc. ......................... 550
Clothing................................ 60
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 60 (school bus/dinners)
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 5
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1883

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Bank...........................10700.....50........0
Council Tax ...................1200......0.........0
Balance 2nd Ch.................15000.....0.........0
Old Gas/Elec...................1900......0.........0
Credit card....................1500......0.........0
Carphone W.....................170.......0.........0
Inland Rev.....................55000.....0.........0
Total unsecured debts..........85470.....50........-

Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,943
Available for debt repayments........... 357
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 307

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -85,470
Net Assets.............................. -85,470

Mrs K
Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1130
Partners monthly income after tax....... 1000
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2210

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 795
Management charge (leasehold property).. 0
Council tax............................. 156
Electricity............................. 65
Gas..................................... 60
Oil..................................... 0
Water rates............................. 68
Telephone (land line)................... 35
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 27
Groceries etc. ......................... 550
Clothing................................ 60
Petrol/diesel........................... 170 (50 mile daily commute)
Road tax................................ 16
Car Insurance........................... 37
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 36 (Bus from carpark and back)
Childcare/nursery....................... 0
Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 5
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2232

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Bank ..........................10700.....50........0
Credit card ...................1200......0.........0
Council Tax....................1200......0.........0
Old Gas/Elec...................1900......0.........0
Credit card ...................1500......0.........0
Carphone W ....................165.......0.........0
Inland Rev.....................55000.....0.........0
balance 2nd ch.................15000.....0.........0
School fees....................350.......0.........0
Total unsecured debts..........87015.....50........-

Monthly Budget Summary
Total monthly income.................... 2,210
Expenses (including HP & secured debts). 2,232
Available for debt repayments........... -22
Monthly UNsecured debt repayments....... 50
Amount short for making debt repayments. -72

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -87,015
Net Assets.............................. -86,215

Depressing reading...............:o

fiveyearplan · 21 November 2009 at 4:55PM

On the first SOA I would deduct some of partner's contribution as they have a lot of expenses with commuting to work.

Is the third adult in the house a dependant?

korben556 · 21 November 2009 at 4:57PM

Hi, I'll take a look at her contribution.

The third adult is my 19 year old son who works part time and is looking to move out soon - should I take him off?

Thanks

fiveyearplan · 21 November 2009 at 5:17PM

Hmm difficult question - is he by any chance in any kind of education?

korben556 · 21 November 2009 at 5:21PM

No, he dropped out of college.

THRIFTY_GIRL · 21 November 2009 at 5:23PM

Hi there,

Just looking at this, do you have a 19 year old and one younger child? (I assume you are receiving £20 per week child benefit for child 2?)

Looking at your income (less than £50,000 gross combined) you should be entitled to a minimum of £10 per week extra in Child Tax Credits. If you are not claiming you should do so ASAP. The claim can be backdated for three months.

Who owes the Inland Revenue bill? if just one of you, it may be beneficial for just one of you to apply for BR? whilst possibly leaving some money owing it could save your credit history and make it easier going forward.

Were you previously self employed? has the business ceased/did you make you make a loss prior to cessation? Have you consulted a tax specialist on this, or at least say visited the CAB on this? Reason I mention is that this may be a bill estimated by HMRC or you may not be claiming all expenses you are entitled to??

Why are you making repayments of only £50pm when you have a further £300 available?

korben556 · 21 November 2009 at 5:29PM

We have applied for tax credits.

The Inland revenue bill is mine only.

To be honest I have only been back in work 3.5 months and have been trying to get square, and although on paper we had a surplus it dissapeared so rapidly.
Had Kids birthdays and £200 repair bill for MOT etc.

THRIFTY_GIRL · 21 November 2009 at 5:39PM

korben556 wrote: »

We have applied for tax credits.

The Inland revenue bill is mine only.

To be honest I have only been back in work 3.5 months and have been trying to get square, and although on paper we had a surplus it dissapeared so rapidly.

1. Excellent..thatg will be £50 a month at least

2. Best to get some advice on the IR bill (start with the CAB as it will be free - they will be able to give you the basics if it is estimated or overstated). Then get some advice on whether you could apply for bankruptcy or an IVA whilst leaving Mrs K intact (will depend on how much of the other debt is in her name probably)

3. Its easily done...£75 per week is easily lost in the grand scheme of things...I see it was spent on the MOT so really only £100 before the birthdays so going forward it should get better (thankfully MOTs only come once a year!!)

once you have the SOA sorted and decided where to go with things sit down as a family and try to sort out an exact budget and what is happening to this surplus....save up all your receipts and write daily spend in a diary for a month or two...then try to work out where you can cut back.

I appreciate this is a difficult time for you but the sooner you identify the areas for saving, the easier it will be. Good luck.

Thrifty

First cut of SOA

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