Embarking on the road to Bankruptcy

Desperatemumoftwo · 20 June 2008 at 1:50PM

Hi all and first of all a huge thank you to all the help I've received thus far from reading existing threads! I think it's about time I introduce myself and tell you a bit about my situation and then hopefully when I'm in desperate need of help you know which pain is asking for it!

A bit about me - I left my husband nine months ago after a not so good relationship of over 11 years in which he constantly got us into debt without a second thought. In 2001 whilst pregnant with my first child I went freelance and he agreed to support me and the family to allow me to do so. He was/is on a good wage but his spending is/was terrible! Anyway what happened during our time together isn't really all that relevant so I won't bore you any longer than necessary, this post will no doubt be far too long as it is!

To cut a long story short I left him and moved out of the family home on the 1st November last year with a full time job working from home, a contract that should have brought in a £40k payout and a huge sigh of relief! I paid 6 months rent upfront so I could privately rent which I had to borrow from a credit card with the idea that I would pay it off with the lump sum I was expecting or failing that the money from his pensions which my solicitor at the time told me I would get in cash! She was wrong! I had to turn down the full time job as it would have meant a lot of travelling around the UK and abroad and with two young children I just don't have the support to be able to do that kind of work. The contract which the payout was due from went belly up so I lost out on that as well. :mad:

So since November I've been having to rely on credit and benefits to struggle by basically whilst trying to get new clients. I now have over £20k of debt in my name alone plus my name is still on the mortgage of the house he lives in with his girlfriend and there is also at least one secured debt. The mortgage and secured debt is all being paid for by him, the house is on the market but has absolutely no equity in it and he is happy to continue paying these. I'm trying to get my name removed from the loans and have been doing so since I left.

I've had advice from one of the National Charity Helplines and I'm waiting a call back from CAB to go over a couple of things but the reality is I really don't have any other option

I've completed most of the form online through the Insolvency website and I'm going to find out whether or not I need to make an appointment with the court in Derby to file for bankruptcy.

Two queries for now if you don't mind

Is there somewhere I can get a list of figures for my SOA as a single mum of 2 kids for guidance? I'm on Income Support, getting all benefits that I am entitled to and get maintenance but that's it so want to make sure I do everything right!

And the other thing is my ex is dragging his heels in the ground getting me the information I need for the form for the mortgage and secured loan details. If I explain this to the court will they understand and allow me to file without this exact info to hand or should I wait for him to cough up the info?

Thanks ever so much in advance for all/any help! :beer:

Gettinghelp · 20 June 2008 at 1:58PM

Welcome!

I am sorry i can't help with the 2 questions you have asked i didn't have the complication of a morgage when i went BR. I think as long as you put as much information at you can on the form that you can regarding the mortgage and secured loan then it should be ok! ( i am sure someone will correct me if i am wrong) but i don't think you should have to wait for him to get his !!!! in gear!

I would get in contact with the courts ASAP as some posters are having to wait a month or two before they get a BR appointment. Go on do it now, the receptionist has had loads of people as about bankruptcy your not the first and you won't be the last!

Good luck and keep us informed

x

tigerfeet2006 · 20 June 2008 at 2:10PM

Hi and welcome to the board.

Two queries for now if you don't mind

Is there somewhere I can get a list of figures for my SOA as a single mum of 2 kids for guidance? I'm on Income Support, getting all benefits that I am entitled to and get maintenance but that's it so want to make sure I do everything right! Just pop your SOA up here and the good people here will check it over for you to make sure you have everything right. There is no exact figures published for general perusal, so just put down what pay and we will check you haven't missed anything.

And the other thing is my ex is dragging his heels in the ground getting me the information I need for the form for the mortgage and secured loan details. If I explain this to the court will they understand and allow me to file without this exact info to hand or should I wait for him to cough up the info? Just put down the figures to the best of your knowledge and put est. beside them and write a note to the OR explaining why. If you have any joint debts then they will fall wholley on your ex. when you go BR.

All the best and ask any questions you need to. There is usually someone who can help.

Thanks ever so much in advance for all/any help!

Desperatemumoftwo · 23 June 2008 at 1:06PM

Thank you gettinghelp and tigerfeet for your responses! :cool: I've had an email from the court this morning confirming they have a drop in session for bankruptors (is that a word? LOL!) Mon - Fri mornings so I don't have to wait for an appointment thankfully, not sure I could cope with that! :eek:

The email was really nice and friendly which has put me at ease quite a bit, the plan is to "drop in" on Wednesday morning after I've dropped the kids off! Eeek! I've put it off long enough and the gentleman who emailed me this morning said to fill out the forms as much as possible which also gave a little relief to my concerns about the secured loan details. :T

Anyway, I'm working on my SOA and wondered if you kind people could take a look and let me know what you think?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ £1526 made up of child maintenance, child tax credits, income support & housing benefit
Partners monthly income after tax....... 0
Benefits................................ as above
Other income............................ 0
Total monthly income.................... £1526

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. Council tax bens rcvd
Electricity............................. 35
Gas..................................... 30
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 16 inc internet and sky
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 100
Petrol/diesel........................... 60
Road tax................................ 0
Car Insurance........................... 25
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 19
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Prescriptions .......................... 0
optical bills........................... 0
Dentist................................. 0
Total monthly expenses.................. 1507

Monthly Budget Summary
Total monthly income.................... 1,526
Expenses (including secured debts)....... 1,507

Surplus(deficit if negative)............ 19.00

I have been using a child minder as well to look after my son which comes to £156 per month but have excluded this because I can't afford it obviously!

He does start primary school in September so that will be nil then.

Thanks in advance!

zoe2008 · 23 June 2008 at 1:16PM

Hi
Im going BR in deby too and it a drop in app, Mon - Fri 9:30 - 12.00.
They will only see 6 poeple a day so i was told to get their early.
Good luck
X

Desperatemumoftwo · 23 June 2008 at 1:25PM

zoe2008 wrote: »

Hi
Im going BR in deby too and it a drop in app, Mon - Fri 9:30 - 12.00.
They will only see 6 poeple a day so i was told to get their early.
Good luck
X

Yup that's what they told me too

I'll be getting there about 9.15 so hopefully that will be early enough! :eek:

Waspeze · 23 June 2008 at 1:34PM

Your SoA looks ok though a couple of things for starters

..

you have nothing down for dentist, opticians etc? do you get them free?

Also.. do you have a car? you have petrol included but no car maintenance, tax etc?

dalip · 23 June 2008 at 1:34PM

Desperatemumoftwo wrote: »

Thank you gettinghelp and tigerfeet for your responses! :cool: I've had an email from the court this morning confirming they have a drop in session for bankruptors (is that a word? LOL!) Mon - Fri mornings so I don't have to wait for an appointment thankfully, not sure I could cope with that! :eek:

The email was really nice and friendly which has put me at ease quite a bit, the plan is to "drop in" on Wednesday morning after I've dropped the kids off! Eeek! I've put it off long enough and the gentleman who emailed me this morning said to fill out the forms as much as possible which also gave a little relief to my concerns about the secured loan details. :T

Anyway, I'm working on my SOA and wondered if you kind people could take a look and let me know what you think?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ £1526 made up of child maintenance, child tax credits, income support & housing benefit
Partners monthly income after tax....... 0
Benefits................................ as above
Other income............................ 0
Total monthly income.................... £1526

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. Council tax bens rcvd
Electricity............................. 35
Gas..................................... 30
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 16 inc internet and sky
Mobile phone............................ 30 high so unless you need this for work i would increase your landline and decrease the mobile to balance it out or put them together under just phone.
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 might be a bit high £350
Clothing................................ 100
Petrol/diesel........................... 60
Road tax................................ 0?
Car Insurance........................... 25
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 19
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Prescriptions .......................... 0
optical bills........................... 0
Dentist................................. 0
Total monthly expenses.................. 1507

Monthly Budget Summary
Total monthly income.................... 1,526
Expenses (including secured debts)....... 1,507

Surplus(deficit if negative)............ 19.00

I have been using a child minder as well to look after my son which comes to £156 per month but have excluded this because I can't afford it obviously! He does start primary school in September so that will be nil then.

Thanks in advance!

Apart from where i have said all seems fine. Don't think they take most of your benefits as income anyway but admit i am no expert on benefits,so may have to wait to get that confirmed.D

Desperatemumoftwo · 23 June 2008 at 1:39PM

Thanks guys! :T

Groceries - For one adult and 2 young children that is a low approximate, especially with the price of everything increasing substantially :mad: but can juggle figures as necessary.

Dentist and opticians - I'm on Income Support so get free prescriptions etc.

Car - The car is in my ex husbands name so I pay for insurance and diesel but he pays the tax, I'll add maintanence though as I do pay for that sadly!

What happens if my expenditure is greater than my income though? Might be a silly question but it is at the end of the day! Obviously I do what I can to reduce bills etc but what if my SOA showed a deficit, would that affect anything?

Thanks again folks!

Waspeze · 23 June 2008 at 1:42PM

Do you have AA membership or something similar as well?

Don't worry too much if your expenditure is slightly more than income.. if asked you can just say you're looking at cutting back on certain things, or in the process of trying to get some part time work

:)

If it's a lot more though then you might have problems but I don't think that's the case with you!

Desperatemumoftwo · 23 June 2008 at 1:47PM

I have membership with a company done through my car insurance so that's all included.

I've tried to keep below my income but realistically that's not the case, especially as I have £156pm to a child minder so that I can try and concentrate on getting business as well as doing the charity work that I do! I'll have a look at maybe bumping other things up instead of including that though as I don't think they would class that as a necessity!

Embarking on the road to Bankruptcy

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