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    • srg0916
    • By srg0916 13th Feb 18, 7:03 PM
    • 3Posts
    • 0Thanks
    Help me please!
    • #1
    • 13th Feb 18, 7:03 PM
    Help me please! 13th Feb 18 at 7:03 PM
    Hi, Iím hoping to get some adviceÖ
    Iím a 33 year old male with a wife and 2 year old child.
    Iím in the process for filing for bankruptcy as I owe approx £37k total to 4 creditors
    I get £1420pm after tax but also contribute £100pm to a xmas savings scheme via salary sacrifice, which gets paid out just before xmas, so I get an extra £1200 on my Nov wage.
    My wife earns approx £800pm and gives me £650 towards the household bills (remaining £150 she does whatever she pleases)
    She gets approx £80pm for child benefit
    We have 2 cars (I own 1 and she owns 1) she is a carer and needs her car for her job as it requires her to travel to peoples houses.
    I work in a single place of work and use my car to get to and from work and to take my child to childcare (as my wife works early hours of the morning)
    I pay out for the running costs of these with the income I get
    I have suffered for a long time with stress and depression, the debt has added to these conditions.
    The following is a list of expenses which Iím considering putting down on my BR application (please advise of anywhere you would increase/decrease and why):
    Rent £378pm
    Gas and Electric £100 (duel fuel)
    Council Tax £82pm
    TV License £13pm
    Contents insurance £7pm
    Life Insurance £25pm
    Food including toiletries & baby £402pm
    Clothes £88
    Meals at Work £45pm
    Sports/Hobbies/Entertainment £50pm
    Internet & Satellite TV £55pm
    Mobile phones £60pm
    Dentist £7pm
    Medication £15pm
    Fuel and Parking £300pm
    Spares & Servicing £37pm
    Car Insurance £70pm
    Road Tax £25pm
    Breakdown Assistance £9pm
    Hairdressing £14pm
    Union fees £16pm
    Emergencies £20pm
    Total £1818.00
    Leaving a Surplus of £252.00 (if my figures correct)
    We donít pay childcare but could I include something for this without having any proof for this as family watch our child and occasionally we buy them things like flowers etc as a thankyou, bearing in mind we would normally have to pay full child care costs if they werenít around

    Loan £21500
    C.Card £11750
    Retailer loans £238 and £3170 (DFS & SCS)
    I have been paying the retailer loans as the monthly repayment has been affordable and havenít missed payments on these. I have missed approx 2-3 payments on both Loan and C.Card I know this will be classed as preferential payments but I honestly thought I was doing the right thing paying back some of my debt, will the OR automatically give me a restriction order? If so, what will this be and what does this mean?

    As I use my car to go to and from work, getting public transport would mean 2-3 buses to and from work meaning a travelling time of approx 2.5 - 3hrs per day. I also use the car to take my child to childcare (family). I wouldnít be able to use the wifes car as she uses hers for work and leaves before me most days. Will the OR allow me to keep my car I have a 60 plate seat ibiza, worth probably about £1600, I have recently spent the past part of £1000 keeping the car on the road and feel if I'm asked to give this up and get a cheaper car then the new car might cost me more in the long run?

    On the bankruptcy application it asks if iím paying out for anything like furniture on hire purchase, although I was told by stepchange that both retailer loans are most likely classed as personal loans so should be included as a creditor, would i include them as a creditor or can i say that they are a priority bill and just include them when they ask if i pay for furniture? (sorry if this doesnít make sense)

    I have salary sacrifice for £100pm into a xmas savings club, which I use to pay for xmas, birthdays etc. Will this be seen as something I cannot do or would this be acceptable? Also where would I put this on the application section?

    I occasionally do overtime, I have done this for the last few months due to my circumstances needing extra money but it is something which isnít guaranteed and is starting to affect my mental health been stuck in work constantly without seeing any reward. If I go BR will the OR want to know about this? There is a section on the application form asking for this info but which info do I include? Is it just my last pay slip info or a payslip where I havenít done OT?
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    • DCFC79
    • By DCFC79 13th Feb 18, 9:07 PM
    • 31,217 Posts
    • 19,728 Thanks
    • #2
    • 13th Feb 18, 9:07 PM
    • #2
    • 13th Feb 18, 9:07 PM
    Surely you can cut down on Mobile phone @ £60.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • TheGardener
    • By TheGardener 14th Feb 18, 6:54 AM
    • 2,237 Posts
    • 2,115 Thanks
    • #3
    • 14th Feb 18, 6:54 AM
    • #3
    • 14th Feb 18, 6:54 AM
    Hi and welcome. You sound really stressed - take a deep breath and make a start with completing your SOA using this template It has a facility at the end to format for posting on this board. It will make it easier for us to understand your finances and offer advice.
    At this stage, we are not looking to 'save' money but to set a clear and achievable budget that will be acceptable to the OR and provide you with some clarity and stability for the months and years to come. If its only you who is going BR - then its your income and expenditure we need not your partners.
    You earn roughly 50% more than her so work out the expenses based on that.
    don't worry about preferential payments etc just now -if you are definitely going BR stop paying all debts now and plan out your process. Have you opened a new basic bank account ? If not - do that and then start moving your income and essential DD's over to it. Make sure its a 'basic' account with no overdraft facility.
    The Christmas club will probably have to go. However, if you can find savings within the budget you agree with the OR, you may be able to still put money by for Christmas.
    Last edited by TheGardener; 14-02-2018 at 6:58 AM.
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