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  • FIRST POST
    • Jeffiner84
    • By Jeffiner84 16th Oct 16, 9:49 AM
    • 8Posts
    • 1Thanks
    Jeffiner84
    Drowning in debt
    • #1
    • 16th Oct 16, 9:49 AM
    Drowning in debt 16th Oct 16 at 9:49 AM
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1232
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1232


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 645
    Management charge (leasehold property).. 0
    Council tax............................. 97
    Electricity............................. 17.2
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 36
    TV Licence.............................. 36
    Satellite/Cable TV...................... 62
    Internet Services....................... 0
    Groceries etc. ......................... 50
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 62
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 4.9
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1030.1



    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
    Loan...........................2029......225.2.... .NaN
    Loan ..........................4590......128.9.....NaN
    Loan...........................961.......220...... .1275
    Credit card....................1000......10........0
    Credit card....................1400......25........2
    Credit card....................3850......120.......20
    Credit card....................5000......130.......30
    Loan ..........................1250......167.......NaN
    Loan...........................800.......40....... .NaN
    Loan...........................482.......490...... .4
    Loan...........................1450......128...... .70
    Loan...........................1500......78....... .25
    Total unsecured debts..........24312.....1762.1....-



    Monthly Budget Summary

    Total monthly income.................... 1,232
    Expenses (including HP & secured debts). 1,030.1
    Available for debt repayments........... 201.9
    Monthly UNsecured debt repayments....... 1,762.1
    Amount short for making debt repayments. -1,560.2


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -24,312[b]
    Net Assets.............................. -24,312[/b
Page 1
    • Jeffiner84
    • By Jeffiner84 16th Oct 16, 9:51 AM
    • 8 Posts
    • 1 Thanks
    Jeffiner84
    • #2
    • 16th Oct 16, 9:51 AM
    • #2
    • 16th Oct 16, 9:51 AM
    I currently have a flatmate but he's potentially moving out, and has not contributed to rent etc in past 4 months so I have just left him off calculations.

    It is because of him I took on the debt and obviously he has done nothing to help resolve it
    • Puddylove
    • By Puddylove 16th Oct 16, 10:48 AM
    • 349 Posts
    • 563 Thanks
    Puddylove
    • #3
    • 16th Oct 16, 10:48 AM
    • #3
    • 16th Oct 16, 10:48 AM
    Hi
    We can make suggestions on your expenses, but to address the bigger point first - can you increase your income?
    Second job, selling unwanted stuff on eBay, trying for promotion?
    Maybe you can also get rid of your current 'flatmate' and get one who contributes?
    Or move out, and find a place as a lodger?
    Go home and live with relatives?
    • Puddylove
    • By Puddylove 16th Oct 16, 10:55 AM
    • 349 Posts
    • 563 Thanks
    Puddylove
    • #4
    • 16th Oct 16, 10:55 AM
    • #4
    • 16th Oct 16, 10:55 AM
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1232
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1232


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 645 This is not sustainable on your income - need to reduce this
    Management charge (leasehold property).. 0
    Council tax............................. 97
    Electricity............................. 17.2
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 36 This is high - get rid of contract, go sim only
    TV Licence.............................. 36 Shouldnt this be £12.12 per month?
    Satellite/Cable TV...................... 62 You can't afford this
    Internet Services....................... 0
    Groceries etc. ......................... 50
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 62
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 4.9 What is this for if you don't own the building?
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1030.1



    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
    Loan...........................2029......225.2.... .NaN
    Loan ..........................4590......128.9.....NaN
    Loan...........................961.......220...... .1275
    Credit card....................1000......10........0
    Credit card....................1400......25........2
    Credit card....................3850......120.......20
    Credit card....................5000......130.......30
    Loan ..........................1250......167.......NaN
    Loan...........................800.......40....... .NaN
    Loan...........................482.......490...... .4
    Loan...........................1450......128...... .70
    Loan...........................1500......78....... .25
    Total unsecured debts..........24312.....1762.1....-



    Monthly Budget Summary

    Total monthly income.................... 1,232
    Expenses (including HP & secured debts). 1,030.1
    Available for debt repayments........... 201.9
    Monthly UNsecured debt repayments....... 1,762.1
    Amount short for making debt repayments. -1,560.2


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -24,312[b]
    Net Assets.............................. -24,312[/b
    Originally posted by Jeffiner84
    Please see my comments in red above.
    • katejo
    • By katejo 16th Oct 16, 11:02 AM
    • 2,810 Posts
    • 1,066 Thanks
    katejo
    • #5
    • 16th Oct 16, 11:02 AM
    • #5
    • 16th Oct 16, 11:02 AM
    I currently have a flatmate but he's potentially moving out, and has not contributed to rent etc in past 4 months so I have just left him off calculations.

    It is because of him I took on the debt and obviously he has done nothing to help resolve it
    Originally posted by Jeffiner84
    Why is your flatmate only 'potentially' moving out if he hasn't contributed to rent? In your SOA, why is your TV licence payment £36? Mine is £12.12 per month which is the normal monthly payment.
    • sourcrates
    • By sourcrates 16th Oct 16, 11:45 AM
    • 8,315 Posts
    • 8,143 Thanks
    sourcrates
    • #6
    • 16th Oct 16, 11:45 AM
    • #6
    • 16th Oct 16, 11:45 AM
    Hi,

    Is £50 a month for food realistic ? i spend 4 times that in an average month, also you have no emergency fund, nothing for christmas, birthdays etc etc.

    You can easily make that budget tally up so you only have £50 or less left at months end.

    If you can get your creditors to freeze interest on your accounts, and if you can then repay around £4000 of your debt over say the next year or so, you should then apply for a debt relief order to clear the remaining sub 20k debt.

    That is the quickest solution available to you.
    Last edited by sourcrates; 16-10-2016 at 11:49 AM.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • fatbelly
    • By fatbelly 16th Oct 16, 12:31 PM
    • 10,074 Posts
    • 7,554 Thanks
    fatbelly
    • #7
    • 16th Oct 16, 12:31 PM
    • #7
    • 16th Oct 16, 12:31 PM
    Sourcrates is right that you don't have £200 because your food spend is unrealistic - I'd want to see £160 a month there, plus maybe £20 for clothing and £20 for haircuts etc.

    You obviously need to stop paying your non-priority creditors (that's all of them) and get your expenditure sorted out. You're paying 3 times the going rate for your TV licence and £100 for phones & Sky is too much.

    You don't pay for water? Depends where you live but I'd expect £50 there.

    I think you've gone too far for a DRO - the limit is 20k and it isn't going up any time soon. And I can't see you paying down £4k, particularly when there's another option.

    So you will be looking at bankruptcy with its £680 fee - hopefully there is a debit card or similar with that available somewhere in your collection. You will find it difficult to get credit for the next few years.
    • Jeffiner84
    • By Jeffiner84 16th Oct 16, 1:22 PM
    • 8 Posts
    • 1 Thanks
    Jeffiner84
    • #8
    • 16th Oct 16, 1:22 PM
    • #8
    • 16th Oct 16, 1:22 PM
    I can't increase income no.

    I'm giving up lease - this flat is awful but have to survive 2 more months
    • Jeffiner84
    • By Jeffiner84 16th Oct 16, 1:23 PM
    • 8 Posts
    • 1 Thanks
    Jeffiner84
    • #9
    • 16th Oct 16, 1:23 PM
    • #9
    • 16th Oct 16, 1:23 PM
    I don't understand the TV Licence I expected it to be 12. But it's 6 months at that the 12 then on
    • Jeffiner84
    • By Jeffiner84 16th Oct 16, 1:26 PM
    • 8 Posts
    • 1 Thanks
    Jeffiner84
    Live in Scotland so water included in ct

    I'm trying to talk to my creditors but they won't negotiate


    I was hoping I could get something NOW to freeze interest etc but I can't catch a break!
    • sourcrates
    • By sourcrates 16th Oct 16, 1:27 PM
    • 8,315 Posts
    • 8,143 Thanks
    sourcrates
    I can't increase income no.

    I'm giving up lease - this flat is awful but have to survive 2 more months
    Originally posted by Jeffiner84
    Fatbelly nails it really, your present budget is totally unrealistic.

    Going Bankrupt would give you a fresh start with a clean slate.

    I doubt there would be any monthly payments, (IPA) as theres no room in your budget for it, you would be discharged within 12 months.

    Its all done online now or by post, the requirement to attend court in person was removed last year.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Jeffiner84
    • By Jeffiner84 16th Oct 16, 1:27 PM
    • 8 Posts
    • 1 Thanks
    Jeffiner84
    Also I have ZERO money available. I've no way of finding £680 for bankruptcy!

    So basically I have to just live with it?
    • sourcrates
    • By sourcrates 16th Oct 16, 1:37 PM
    • 8,315 Posts
    • 8,143 Thanks
    sourcrates
    Also I have ZERO money available. I've no way of finding £680 for bankruptcy!

    So basically I have to just live with it?
    Originally posted by Jeffiner84
    Well no you dont, you must be proactive if you ever want to get out of this situation, you can try and save the money from any creditor payments you normally make, or try and cut back to the bone on other things for one month in order to get the fee together.

    On paper you have £1200 a month coming in.

    You can also apply for grants, or some charities can help with the Bankruptcy fees, check here :

    https://www.turn2us.org.uk/Find-Benefits-Grants

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • C.M.
    • By C.M. 16th Oct 16, 1:38 PM
    • 28 Posts
    • 86 Thanks
    C.M.
    To get the money for bankruptcy you need to stop paying your creditors. Pay only essentials - ie rent, council tax and utilities

    Cancel all direct debits, write (don't call) to your creditors, advising you are in financial distress and are taking advice on a way forward - they have to treat you fairly.

    Redirect the money you would have been paying them to saving the 680 for bankruptcy.
    • enthusiasticsaver
    • By enthusiasticsaver 16th Oct 16, 2:59 PM
    • 2,540 Posts
    • 4,354 Thanks
    enthusiasticsaver
    Is NaN your nan or is that a company? You cannot include family debts within your bankruptcy debts so £8669 will not be included. An IVA is cheaper I think than going bankrupt and is not so bad on your credit rating.

    Can you move to somewhere smaller or cheaper and not pay anything towards your debts and ask them to accept nominal payments while you sort yourself out? If you took out debts because your flatmate was not paying rent I would not be giving him a roof.
    Debt and mortgage free and saving for early retirement
    • tallyhoh
    • By tallyhoh 16th Oct 16, 4:09 PM
    • 2,007 Posts
    • 1,942 Thanks
    tallyhoh
    Quite honestly I wouldn't pay any of the credit cards or loans & use the money to go bankrupt. Have you defaulted on any of them yet?
    Tallyhoh!

    Stopped Smoking October 2000. Saved £21,840 so far!
    • tlc678910
    • By tlc678910 16th Oct 16, 5:44 PM
    • 385 Posts
    • 757 Thanks
    tlc678910
    Hi, it is completely impossible for you to make even the minimum payments on your debts so soldiering on is not an option you have unfortunately.

    Stop paying your debts (keep paying your rent, council tax and utilities) and use the advice you are given here and from a free debt charity to decide what to do.

    Tlc
    • bobcat2
    • By bobcat2 16th Oct 16, 6:34 PM
    • 32 Posts
    • 48 Thanks
    bobcat2
    [QUOTE=enthusiasticsaver;71462148]Is NaN your nan or is that a company? You cannot include family debts within your bankruptcy debts so £8669 will not be included. An IVA is cheaper I think than going bankrupt and is not so bad on your credit rating.

    I think NaN may be Not a Number...?
    • sourcrates
    • By sourcrates 16th Oct 16, 6:52 PM
    • 8,315 Posts
    • 8,143 Thanks
    sourcrates
    Is NaN your nan or is that a company? You cannot include family debts within your bankruptcy debts so £8669 will not be included. An IVA is cheaper I think than going bankrupt and is not so bad on your credit rating.
    Originally posted by enthusiasticsaver
    An IVA would not be suitable as when you look at the OP's "real" budget, in reality, they do not have anything left for debt repayment at month end.
    IVA fees can be Hugh, and are paid from the monthly repayment, so again not enough disposable income, also any form of insolvency is bad for your credit file regardless of which option is chosen.

    When you break it all down, Bankrupcy is the best and only way to deal with it correctly.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • JCS1
    • By JCS1 16th Oct 16, 8:44 PM
    • 3,606 Posts
    • 7,413 Thanks
    JCS1
    Is NaN your nan or is that a company? You cannot include family debts within your bankruptcy debts so £8669 will not be included. An IVA is cheaper I think than going bankrupt and is not so bad on your credit rating.

    Can you move to somewhere smaller or cheaper and not pay anything towards your debts and ask them to accept nominal payments while you sort yourself out? If you took out debts because your flatmate was not paying rent I would not be giving him a roof.
    Originally posted by enthusiasticsaver
    Family debts are included in a bankruptcy, all unsecured debt is
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