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  • FIRST POST
    • notsojollybrewer
    • By notsojollybrewer 18th May 17, 5:51 PM
    • 11Posts
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    notsojollybrewer
    Bankruptcy Advice
    • #1
    • 18th May 17, 5:51 PM
    Bankruptcy Advice 18th May 17 at 5:51 PM
    Hi, I am currently preparing to go bankrupt after contacting StepChange. My wife has been advised to seek a DRO...

    My question is based upon expenditure and income. I work full-time and my wife doesn't work, StepChange has split our child benefit and child tax credit equally between us giving my wife her half as her only income. With my income and my share of the expenditure I have £?? left for debts although my debt repayments are much more than that! When I fill out the .gov application is it right that I declare half of the child benefit and child tax credit as income even though it is paid to my wife? Also as we've been leaving ourselves with very little to live on due to meeting repayments the monthly living expenses StepChange say we need is great so would I take what they say is acceptable and transfer that to the application? Any other expenditure advice greatly received!

    Thanks
Page 1
    • notsojollybrewer
    • By notsojollybrewer 18th May 17, 6:36 PM
    • 11 Posts
    • 0 Thanks
    notsojollybrewer
    • #2
    • 18th May 17, 6:36 PM
    • #2
    • 18th May 17, 6:36 PM
    Also we are a family of 5 what would be a realistic amount to put for holidays as my surpluss is currently £399 and I'd really like to try and get it down slightly I currently have car insurance at £300 although I've been quoted £500 today... Car servicing and mot etc house maintenance etc?? Also is it worth getting home insurance and breakdown cover? When doing my soa I held back a bit I think!

    Thanks in advance guys
    • Johnsmith2016
    • By Johnsmith2016 18th May 17, 9:04 PM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    • #3
    • 18th May 17, 9:04 PM
    • #3
    • 18th May 17, 9:04 PM
    Stick as much as you can in. They can only say no

    Dental opticians prescriptions groceries emergency fund holidays etc

    Do you have a pension you can increase ?
    • luvchocolate
    • By luvchocolate 19th May 17, 7:04 AM
    • 1,486 Posts
    • 1,336 Thanks
    luvchocolate
    • #4
    • 19th May 17, 7:04 AM
    • #4
    • 19th May 17, 7:04 AM
    You mentioned the amounts you pay on debt, you will not be paying that as all will be written off in B.R. Allowances have all tightened up recently but they can always say "no" if not allowed
    • notsojollybrewer
    • By notsojollybrewer 19th May 17, 9:06 AM
    • 11 Posts
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    notsojollybrewer
    • #5
    • 19th May 17, 9:06 AM
    • #5
    • 19th May 17, 9:06 AM
    It's basically just knowing what you may get away with from the OR with expenses such as holiday, emergency, kids dinner money, public transport etc... I don't think I mentioned the debts according to my soa I'll have £399 left for debts so OR will take that amount I assume but I have been fairly conservative with the amounts of spending! Also as child benefit and child tax credit is paid to my wife do I add half of that as my income or leave it out?
  • National Debtline
    • #6
    • 19th May 17, 12:19 PM
    • #6
    • 19th May 17, 12:19 PM
    Hi notsojollybrewer


    It is for you to declare what you believe you spend (or realistically need to spend) in order to meet your household's essential needs. It is then for the Official Receiver in turn to challenge these figures and demand payments from disposable income of £X if their view does not tally with yours.


    I know that is a very general statement but no two households are identical, and for me to suggest what you should budget would be like measuring the proverbial piece of string.


    I don't think there is absolutely definitive guidance on how exactly any jointly awarded benefits should be apportioned between you. In either a DRO or bankruptcy. what is looked at is whether either party in a couple is taking on a disproportionate share of essential household bills. Any payments you are asked to make into a bankruptcy should be based predominantly on your wage, rather than on any benefits you receive.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • notsojollybrewer
    • By notsojollybrewer 19th May 17, 1:42 PM
    • 11 Posts
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    notsojollybrewer
    • #7
    • 19th May 17, 1:42 PM
    • #7
    • 19th May 17, 1:42 PM
    Well I've completed the application and paid the fee just need to wait till after payday to press the button! I'd imagine I'll also have a tweak of my expenditure... Will the OR have issues with my income being less than all of my expenditure? It's only by £30 approx! I understand they will query and want to reduce some of the less necessary expenses I've added! My income also includes half of the child benefit and child tax credits (£299) and the other half is my wife's only income so I have added all expenditure from my income! The household income includes the other £299 as my wife's so after all living costs I have -£ but the household has £250ish left! Stepchange soa type program divvies the expenditure differently with my wife taking about 5% of living costs from her £299 benefits! It's good to know they should not take benefits into consideration.

    Thank you.... Any other advice greatly received ��
    • LincsPaul
    • By LincsPaul 19th May 17, 1:48 PM
    • 79 Posts
    • 27 Thanks
    LincsPaul
    • #8
    • 19th May 17, 1:48 PM
    • #8
    • 19th May 17, 1:48 PM
    They won't have a problem with income being less than expenditure. That applies for those of us who are currently unemployed in a big way

    If they get back to you in an attempt to enforce an IPA by shrinking some of your outgoings, post the SOA on here and there are lots of people about who will have a look at it.
    • notsojollybrewer
    • By notsojollybrewer 19th May 17, 1:51 PM
    • 11 Posts
    • 0 Thanks
    notsojollybrewer
    • #9
    • 19th May 17, 1:51 PM
    • #9
    • 19th May 17, 1:51 PM
    I think I'll do that anyway for piece of mind lol... Will post it over the weekend! What is the best soa builder to use?

    Cheers
    • LincsPaul
    • By LincsPaul 19th May 17, 2:05 PM
    • 79 Posts
    • 27 Thanks
    LincsPaul
    I think I'll do that anyway for piece of mind lol... Will post it over the weekend! What is the best soa builder to use?

    Cheers
    Originally posted by notsojollybrewer
    I used http://www.stoozing.com/calculator/soa.php
    • notsojollybrewer
    • By notsojollybrewer 19th May 17, 2:09 PM
    • 11 Posts
    • 0 Thanks
    notsojollybrewer
    Thanks Paul
    • notsojollybrewer
    • By notsojollybrewer 7th Jun 17, 12:39 PM
    • 11 Posts
    • 0 Thanks
    notsojollybrewer
    Well I finally went bankrupt Monday received a call from receiver today saying I didn't need an interview and that I'd get a letter telling me how much I'll have to pay for 36 months! I then needed to sign and return etc etc They stated that how much I pay will be decided by an independent company! Is not needing an interview a positive and from people's experiences how much is the most they can ask for? I did my income expenditure via the stepchange and it's based on a family my size 2 adults 3 kids! Just worrying now they are going to ask for £500 £600! Any advice happily accepted!

    Thanks
    • notsojollybrewer
    • By notsojollybrewer 7th Jun 17, 1:28 PM
    • 11 Posts
    • 0 Thanks
    notsojollybrewer
    Also why don't I need an interview and is this a sign they are going to ask for lots of £££ for my IPA? My soa left me no disposable income... Obviously they are going to tweak?!
    • luvchocolate
    • By luvchocolate 7th Jun 17, 7:44 PM
    • 1,486 Posts
    • 1,336 Thanks
    luvchocolate
    If you showed no surplus income then they must think somethings are over estimated. I know they are tightening up now.
    Have you posted you S.O.A up here? if not if you do the experts on here will have a look.
    • LincsPaul
    • By LincsPaul 7th Jun 17, 9:04 PM
    • 79 Posts
    • 27 Thanks
    LincsPaul
    Ask Debt Doctor for advice about any IPA issues. Apparently you shouldn't agree to one if they want <£100 (I assume they won't take you to court for that sum).
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