Considering going BR- selling assets? SOA NOW ADDED

kevj1977 · 28 August 2008 at 9:55AM

Finally sat down and looked at all my debts the other night and it was :eek:

I am thinking BR may be my only option (I will post a SOA tonight) but I am concerned about a few things....

I have been trying to sell my house since last October, in that time I have reduced the price by 15k already (live in a relatively cheap area, so it's reduced from 95k to 80k) and to afford to live I have been selling off various non-essentials such as furniture in the spare room, electrical goods etc.

Before I realised I probably need to go BR, I had decided to sell my car and my suite and they are currently advertised.

My suite is advertised for £800 despite me still owing almost £3000 on finance on it. And my car is probably advertised for slightly less than it's value (but not by much)

I was also considering putting my house into auction next month as the repayments are crippling me.

If I sell these assets would it go against me if I do go for BR? I am seeing my financial advisor tonight to see if its the right route for me to take, as opposed to a DMP or IVA.

I have had a phonecall about my suite today and I am not sure what to do. The money would come in handy, but £800 is hardly going to get me out of the mess I am in.... so if it's going to go against me getting a fresh start, I think it's best not to bother?

What does anyone think/know, thanks

SOA Now Added:
Income Amount(£)

Monthly income after tax

1773

Partners monthly income

0

Benefits

0

Other income

0

Total monthly income

1773

Expenses

Amount(£)

Mortgage

600

Secured loan payments

0

Rent

0

Management charge (leasehold property)

0

Council tax

74

Electricity

5

Gas

5

Oil

0

Water Rates

24

Telephone (land line)

0

Mobile phone

10

TV Licence

0

Satellite/Cable TV

0

Internet services

0

Groceries etc.

100

Clothing

10

Petrol/diesel

40

Road tax

12

Car Insurance

64

Car maintenenance (including MOT)

6

Car Parking

0

Other travel

160

Childcare/nursery

0

Other child related expenses

130

Medical (prescriptions, dentists, opticians etc.)

7

Pet Insurance/Vet bills

0

Buildings Insurance

0

Contents Insurance

0

Life Assurance

24

Other Insurance

30

Presents (birthday, christmas etc.)

65

Haircuts

10

Entertainment

0

Holiday

80

Emergency Fund

0

Total monthly expenses

1456

Secured Debt Description

Debt(£)

Monthly(£)
APR(%)

Mortgage

67000

(600)
6.9

Secured Debt totals

67000

-
-

Unsecured Debt Description

Debt(£)

Monthly(£)
APR(%)

Northern Rock Loan

18000

200
6.9

CITI Financial Loan

15000

325
11.9

Lloyds TSB Amex CC

6121

200
14.9

GE Capital - DFS

3000

125
0

MBNA CC

4574

121
14.9

Mint CC

4675

140
14.9

Unsecured Debt totals

51370

1111
-

Asset Description

Value (£)

Cash

0

House Value (Gross)

79950

Shares and bonds

0

Car(s)

2500

Other assets (e.g. endowments, jewellery etc)

0

Total Assets

82450

Monthly Budget Summary

Amount(£)

Total monthly income

1,773

Monthly expenses (incl. secured loans)

1,456

Available for debt repayments

317

UNsecured debt repayments

1,111

Surplus

-794

Personal Balance Sheet Summary

Amount(£)

Total Assets (things you own)

82,450

Total Secured Debt

-67,000

Total Unsecured Debt

-51,370

Net Assets

-35,920

Alongside these debts, I also have a Ltd Co. with Corporation Tax and VAT Bills that I do not have the funds to pay either, a rough total of £9000 to the taxman.

Hope this helps.

Hope this helps.

blind-as-a-bat_2 · 28 August 2008 at 10:02AM

Selling assets to survive is ok, as long as you dont dispose of anything for well under its value and you can prove the proceeds where used for living expenses

Your OR will question any large transactions so i think £800 for the suite will get there atention, but as long as you can demonstrate you had no other choice and you didnt dispose of it under its realistic value you should be OK

You would be wise NOT to sell anything to anyone you know (family/friends) though as that will make them more suspicious you are trying to hide assets

RichOneday_2 · 28 August 2008 at 10:02AM

Is there any equity in the property?

We need an SOA posting to give you pointers on whether bankruptcy is sensible.

Theres link to the SOA all over the forum btw so just do a search.

kevj1977 · 28 August 2008 at 10:09AM

Yes I will post an SOA later tonight

I am at work at the moment so can't go through everything in detail

I popped on to ask this question as I just recieved a phonecall about my suite for sale and I didn't know what to say, whether I should sell it or not.

Hopefully my financial advisor should help me later too!

Reading some other threads it says to have spoken to a debt charity before going BR, is a financial advisor not accepted?

I bought my house for £68k and also have a £24k unsecured loan with it (NR together mortgage), so where I have about 10k of equity in the house itself, If I sell the house, then the interest on my loan element will go sky high

Thanks

blind-as-a-bat_2 · 28 August 2008 at 10:17AM

kevj1977 wrote: »

Hopefully my financial advisor should help me later too!

Reading some other threads it says to have spoken to a debt charity before going BR, is a financial advisor not accepted?

Thanks

You are asked at court if you have had profesional advice, so yes talking to your financial advisor would class as that so should be fine, but it wont hurt to contact a debt charity too for a second opinion just to be sure before making your discision, espiacily if your financial advisor recomends an IVA as s/he may get commision for getting you to go on one, just be wary of any advice from any paid advisor on that score

RichOneday_2 · 28 August 2008 at 10:19AM

CCCS should be your first port of call. They will tell you how things work officially so to speak.

Then come on here and you will find the reality from people who have been through the process and have basically sen pretty much every quirk of the system and how to prepare yourself for BR. There are many questions you simply shouldn't be asking the OR for instance but you can ask freely on here, anonymously.

As for a financial advisor. Why? Especially if its chargeable. Anyone who hasn't been through the process personally is not going to be able to add to what CCCS plus this forum can give completely free.

deedee_3 · 28 August 2008 at 10:23AM

Is the sofa on HP or a personal loan? If it is HP then you can't sell it as it doesn't belong to you untill the last payment is made.

You can talk to a FA but are you paying him for his advice? If so why are you paying someone when you can get the advice free from a debt charity.

kevj1977 · 28 August 2008 at 11:58AM

The sofa is on finance from DFS, not sure if it's classed as HP or a loan?

I am seeing a financial advisor, as my father went bankrupt a few years ago and said this guy was absolutely fabulous to deal with, so I am just seeking his advice initially

Also I am self employed, with outstanding tax bills and want to wind up my company whether I go bankrupt or not, as I am wanting to become normall employed again as I find self employment one big headache, so I need to see a FI in any case.

Obviously I would rather get free help though, so may not instruct him to do anything else, after this meeting

RichOneday_2 · 28 August 2008 at 12:02PM

Besides CCCS (which is personal debt advice) you may want to phone Business Debtline, which is an equivalent charity for business advice.

Their number is 0800 1976026.

maxmycardagain · 28 August 2008 at 12:04PM

are you self employed or a ltd company?

if a ltd company resign as director, it will simply get dissolved

your tax+vat bills will be included in BR if you are S/E

how much is the FA charging?.....(im a cynic)

are yr debts secured or unsecured

as for the suite, or any other goods - well, you choose, the OR's arent ogres, and we all have to live.

the HP on items is covered in your BR

(im not advocating flogging stuff, before anyone kicks off......, but i sold a £5000 vehicle for "market value" and never heard a dicky bird)

deedee_3 · 28 August 2008 at 12:08PM

Check the paperwork for the sofa carefully.

CCCS have a business division and there is also Business Debt line
If you need numbers just shout

Considering going BR- selling assets? SOA NOW ADDED

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