How long are you affected after BR?

miss_spooky

Hello,

I'm thinking of declaring myself br, I have thought long and hard about this and spoke to my mum. She mentioned that on his radio show ML has said that it is not the initial first 6 yeaars that affect you, but you credit worthiness can be affected up to 20yrs later, ie if I decide to get a mortgage.

Is this correct?

Also, my OH took out a loan in April to clear some arears etc, but I've since had to give up work. How will this stand if he also declares himself br.

In a nutshell, I gave up work as couldn't afford childcare after birth of nd child who has since been diagnosed with a disability which will make it impossible for me to ret full time. Have applied for DLA. Landlord didn't renew tenancy therefore we were made homeless and have been accepted by council as homeless and are currently living in a hostel. OH is still working but now can't cope with increasng debts. Have been in DMP over two yrs ago but left comapny on advice of CAB as they were a fee paying company, and have been negotiating with creditors since. One already sent statutory demand notice so waiting for next step from them.

Any advice will be gratefully received.

gettingbetter

:j you have taken the biggest step by asking for help

am not an expert (they will be along soon) can you post an soa thats the best way they can advise you.
Your not alone
kas

shadowdragon

Hi and Welcome

You are in the right place for support and guidance, but you need to talk to one of the debt charities (CCCS, National Debt Helpline, CAB) about Bankruptcy as if you do go down that route, the question will be asked "Have you taken advice on Bankcruptcy?" and unless you have spoken to them, you may be refused BC.

The important thing right now is not to worry about Mortgages ect, you need a roof over your heads be that Council, Housing Association or private renting. I think some people have stopped paying creditors/mortgage repayments and used that to pay for bonds/rent advances so they could get a private letting (do a search on this board theres quite a few around). They also used the moneys to save up for Bankruptcy Fees.

It would be helpful if you posted your Statement of Affairs (meaning your Income and Expenditure) as this will help people offer the correct advice, plus you will need it anyway for your bankruptcy forms so its not a wasted exercise.

tigerfeet2006

Welcome to the board

Your BR will be on your credit report for 6 years and will then drop off. But there will be some instances where the question will be asked have you ever been BR, to which you have to answer yes. This is usually on some insurances. People have got mortgages after BR but the further away your BR is the easier it will be to get a mortgage as they will obviously ask 'have you...'

Ring one of the debt charities as Shadow has said (numbers and links in my signature.) and discuss all your options with them.

If you can prove you were still solvent and expected to be solvent when you took out the loan you should be ok, but ask the charities and see what they say.

miss_spooky

Hello,

Thank you for the response.

Firstly, how & where do I post my SOA's?

Secondly, I have been in contact already with National Debtline and the CAB. NDL as I am still waiting for an appt with CAB after 6 weeks.

NDL have given me load of infomation and have been really good. I have read a lot of info on this board & a few others.

One thing I did find out was, I rung the OR on the advice of NDl to enquire about my cars as both are on Hp. was told that HP & car finance are not incuded in the BR and are not touched by the OR. Has anyone else heard this?

Donna

peachyprice

Yes Donna, that's correct about the cars, if it's HP you don't actually own the car until the last payment is made, it belongs to the HP company.

Firstly check your paperwork to make sure it's HP, some vehicle finance is sold as HP but are actually personal loans. Secondly check to see if there's a bankruptcy clause in the agreement, many have them, which states you have to give the car back if your'e BR.

HTH

PixiePie

miss_spooky wrote: »

Hello,

Thank you for the response.

Firstly, how & where do I post my SOA's?

Donna

Hi Donna,

Sorry if I'm telling you anything you already know - Your SOA is easiest to do in a spreadsheet or word processing package rather than on here, and is basically a list of all your incomes and outgoings. You can find loads on here with the titles of things to think of, eg http://forums.moneysavingexpert.com/showthread.html?t=1085315 - if you do a search for SOA on the forums here you should find loads more. It's helpful to point out whether any income is work or benefits as it makes a difference in terms of BR and a possible IPA (if you don't know what that is, don't worry, it might not apply - a lot of people on here it doesn't apply to, but we can go over that later ). You just write yours up and then copy and paste it here either in this thread or on a thread of it's own, then people can help with either cutting down outgoings or advising you on your BR Income and Expenditure forms as the OR will only allow certain things (but on the flipside allows for other things that you might have missed off).

I also found a link to an automatic calculator online for you on here, http://www.makesenseofcards.com/soacalc.html but personally I didn't like it (but that's just me) and you won't have a saved copy on your PC this way so make sure keep a print out of it if you do this one.

Hope that helps Pix

080808

Hi, i just wanted to say that for me, the CAB was absolutely the best place to go. i went to nat. debtline etc first as they are more easily accessible but the CAB were far more able to help in complicated circumstances., i just wish i had gone to them first. best of luck.

miss_spooky

Here's my SoA.

There are two adults, two children.

We're living in a hostel probably be here for another 6 mths which is why there are no utilities or current Council Tax. Therefore elec is only £5.00 pw as it is metered, laundry is done separetly in laundry room at £2.50 per wash (there's 4 of us inc 3yr old & 10mth baby).

The two cars are not assets as both on HP.

Some debts are in his name, some in mine and some joint. We're both thinking of going br.

Also, where would I find guidance notes for EX160? I Can't find on HMCS website? Otherwise I'll ring for them.

Kindest

Donna



Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 940
Benefits................................ 583
Other income............................ 0
Total monthly income.................... 1523

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 496
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 20
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 23
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 300
Clothing................................ 10
Petrol/diesel........................... 200
Road tax................................ 32
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 28
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1264

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0



No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Council tax 08/09..............216.......15........0
Rundles Council Tax............1877......50........0
British Credit Trust ..........1500......215.......34
College Credit.................2931......0.........0
Abbey OD.......................1188......0.........0
Abbey Loan.....................768.......0.........0
Provident .....................709.......0.........0
Capitol 1......................628.......1.........0
Littlewoods....................555.......0.........0
Royal Vet College..............400.......0.........0
E-on...........................380.......0.........0
Capitol 1......................223.......1.........0
Water..........................195.......0.........0
Npower Elec....................178.......0.........0
UK Open Learning...............350.......0.........0
Virgin Media...................123.22....0.........0
Scottish Power Elec............236.......0.........0
Scottish Power Gas.............119.......0.........0
Sky............................114.......0.........0
3G Mobile......................105.......0.........0
LLS............................101.......1.........0
CSA............................6879......125.......0
Arriva Plc.....................1487......10........0
Southern Electric..............350.......10........0
Baker Lewis....................4303......140.......0
Welocme Finance................3500......215.......30
First Response HP..............9776......183.......28
Total unsecured debts..........39191.22..966.......

Monthly Budget Summary
Total monthly income.................... 1,523
Expenses (including secured debts)....... 1,264
Available for debt repayments........... 259
Monthly UNsecured debt repayments....... 966
Surplus(deficit if negative)............ -707

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -39,191.22
Net Assets.............................. -39,191.22

tigerfeet2006

Just got to go out and wil look at your SOA when I get back but here are some links to the EX160A from Fermi's sticky at the top of the page.

HMCS - Court fees do you have to pay them? (And guidance on completing the fee remission form). (pdf)

HMCS - Form EX160 - Application for a fee remission (pdf)

Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)

Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)

Hope that helps.

tigerfeet2006

miss_spooky wrote: »

Here's my SoA.

There are two adults, two children.

We're living in a hostel probably be here for another 6 mths which is why there are no utilities or current Council Tax. Therefore elec is only £5.00 pw as it is metered, laundry is done separetly in laundry room at £2.50 per wash (there's 4 of us inc 3yr old & 10mth baby). Having spent 10 months in a B&B I can sympathise. I hope they can sort you out soon.

The two cars are not assets as both on HP.

Some debts are in his name, some in mine and some joint. We're both thinking of going br. If only one goes BR the joint debts will fall to the other to pay, just so you know.

Also, where would I find guidance notes for EX160? I Can't find on HMCS website? Otherwise I'll ring for them. See previous post

Kindest

Donna



Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 940
Benefits................................ 583
Other income............................ 0
Total monthly income.................... 1523

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 496
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 20
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50 Is this 2 mobiles? If it is then this is fine. If one then the OR may cut it.
TV Licence.............................. 23
Satellite/Cable TV...................... 0
Internet Services....................... 15 This is not allowed on your SOA, it will have to come from any surplus.
Groceries etc. ......................... 300 Do you have any cooking and food storage facilities in the hostel? Even if you have then you can up this to £430ish
Clothing................................ 10 Up this a bit maybe try £50
Petrol/diesel........................... 200
Road tax................................ 32
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Do either of you pay for dentists, opticians or prescriptions
Pet insurance/vet bills................. 28 leave this but the OR may cut.
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 leave but the OR may cut
Haircuts................................ 0£10 per adult £5 per child
Entertainment........................... 0
Holiday................................. 0 Try for £40
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1264

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0



No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Council tax 08/09..............216.......15........0
Rundles Council Tax............1877......50........0
British Credit Trust ..........1500......215.......34
College Credit.................2931......0.........0
Abbey OD.......................1188......0.........0
Abbey Loan.....................768.......0.........0
Provident .....................709.......0.........0
Capitol 1......................628.......1.........0
Littlewoods....................555.......0.........0
Royal Vet College..............400.......0.........0
E-on...........................380.......0.........0
Capitol 1......................223.......1.........0
Water..........................195.......0.........0
Npower Elec....................178.......0.........0
UK Open Learning...............350.......0.........0
Virgin Media...................123.22....0.........0
Scottish Power Elec............236.......0.........0
Scottish Power Gas.............119.......0.........0
Sky............................114.......0.........0
3G Mobile......................105.......0.........0
LLS............................101.......1.........0
CSA............................6879......125.......0
Arriva Plc.....................1487......10........0
Southern Electric..............350.......10........0
Baker Lewis....................4303......140.......0
Welocme Finance................3500......215.......30
First Response HP..............9776......183.......28
Total unsecured debts..........39191.22..966.......

Monthly Budget Summary
Total monthly income.................... 1,523
Expenses (including secured debts)....... 1,264
Available for debt repayments........... 259
Monthly UNsecured debt repayments....... 966
Surplus(deficit if negative)............ -707

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -39,191.22
Net Assets.............................. -39,191.22

Hope some of that helps.