Revised SOA - any advice gratefully received

indebtandworried

Hi everyone

I posted this revised SOA at the end of my last post but in case it gets overlooked, here it is as a separate post. I have added some notes where I can, I hope this makes sense, and I have also added in the monthly cost of our unsecured loan.

Just to highlight a couple of points that I made previously:

My partner and I earn well however we have managed to get ourselves into a heavy amount of debt through poor credit management and constant consolidation and re-structuring. There are areas where we could cut back but this is an honest assessment of where we are right now and something needs to be done.

I would also like to point out that my salary will reduce in the coming months as I am currently in a high-stress job for the sole reason that I rely on the income to remain stable and meet my monthly commitments, this position is now becoming untenable for me personally as it is causing personal problems for me and also problems in our relationship, and I need to move on to something less stressful which will undoubtedly result in a lower income, possibly with a pay cut of around 30-40%. I am not sure how this will affect me, and if I should take this course of action before considering BR?

If you have any questions please ask as my partner and I are coming to the end of our tether. We are keen to explore the option of IVA or bankruptcy and would appreciate your thoughts and knowledge on this.

Here is the new SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2600
Partners monthly income after tax....... 2770
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5370

Monthly Expense Details
Mortgage................................ 939.2 - this has been in place for 2 years and is interest only, this period has just ended but we are having trouble securing a decent rate. As we have only paid interest on this to date there is no equity in the property. We are ready to accept losing the property as part of any BR proceedings.
Secured loan repayments................. 600
Rent.................................... 0
Management charge (leasehold property).. 35
Council tax............................. 100
Electricity............................. 80
Gas..................................... 22
Oil..................................... 0
Water rates............................. 34.02
Telephone (land line)................... 32.5
Mobile phone............................ 100 - this is for two phones and is 80% made up of the monthly charges from the provider (Vodafone)
TV Licence.............................. 9.95
Satellite/Cable TV...................... 65 - should this be shown as 0 and moved into surplus?
Internet Services....................... 0 - included in Satellite/Cable TV
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 200 - this is for one car
Road tax................................ 10 - this is for one car
Car Insurance........................... 50.53 - this is for one car
Car maintenance (including MOT)......... 10 - this is for one car, it is low because the car is less than a year old
Car parking............................. 50 - this is for one car
Other travel............................ 110 - this is my partners monthly travel card for work (she is not able to claim from employer)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 10
Contents insurance...................... 13.94
Life assurance ......................... 0
Other insurance......................... 38 - this is a joint health insurance policy
Presents (birthday, christmas etc)...... 30
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 50
Car Finance............................. 230 - this is for our car which is 4 months into a 3-year Personal Contract Plan agreement. The car is essential for my current job however I am considering leaving this job due to stress (as I mentioned in my first post)
Total monthly expenses.................. 3520.14

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 13000 - not sure if this should be included here - this is the value of the car but it is under a Personal Contract Plan
Other assets............................ 0
Total Assets............................ 198000

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 153000...(939.2)....7.48
Secured Debt.................. 56000....(600)......10.9
Total secured debts........... 209000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit cards & loan 1..........19232.6...900.......0 - the sum total of my partners unsecured debt
Credit cards 2.................31381.....600.......0 - the sum total of my own unsecured debt
Northern Rock..................30000.....223.9.....7.48
DFS Sofa.......................255.......51........0
Total unsecured debts..........80868.6...1774.9....-

Monthly Budget Summary
Total monthly income.................... 5,370
Expenses (including secured debts)....... 3,520.14
Available for debt repayments........... 1,849.86
Monthly UNsecured debt repayments....... 1,774.9
Surplus(deficit if negative)............ 74.96

Personal Balance Sheet Summary
Total assets (things you own)........... 198,000
Total Secured debt...................... -209,000
Total Unsecured debt.................... -80,868.6
Net Assets.............................. -91,868.6

I would really appreciate any advice that you can offer, and would like to thank you all again for your help so far.

tigerfeet2006

indebtandworried wrote: »

Hi everyone

I posted this revised SOA at the end of my last post but in case it gets overlooked, here it is as a separate post. I have added some notes where I can, I hope this makes sense, and I have also added in the monthly cost of our unsecured loan.

Just to highlight a couple of points that I made previously:

My partner and I earn well however we have managed to get ourselves into a heavy amount of debt through poor credit management and constant consolidation and re-structuring. There are areas where we could cut back but this is an honest assessment of where we are right now and something needs to be done.

I would also like to point out that my salary will reduce in the coming months as I am currently in a high-stress job for the sole reason that I rely on the income to remain stable and meet my monthly commitments, this position is now becoming untenable for me personally as it is causing personal problems for me and also problems in our relationship, and I need to move on to something less stressful which will undoubtedly result in a lower income, possibly with a pay cut of around 30-40%. I am not sure how this will affect me, and if I should take this course of action before considering BR?

If you have any questions please ask as my partner and I are coming to the end of our tether. We are keen to explore the option of IVA or bankruptcy and would appreciate your thoughts and knowledge on this.

Here is the new SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2600
Partners monthly income after tax....... 2770
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5370

Monthly Expense Details
Mortgage................................ 939.2 - this has been in place for 2 years and is interest only, this period has just ended but we are having trouble securing a decent rate. As we have only paid interest on this to date there is no equity in the property. We are ready to accept losing the property as part of any BR proceedings.
Secured loan repayments................. 600
Rent.................................... 0
Management charge (leasehold property).. 35
Council tax............................. 100
Electricity............................. 80
Gas..................................... 22
Oil..................................... 0
Water rates............................. 34.02
Telephone (land line)................... 32.5
Mobile phone............................ 100 - this is for two phones and is 80% made up of the monthly charges from the provider (Vodafone) If you want to get rid of these then default on at least payment before BR and include in BR. If not then lower this to around £60/70 and absorb the rest into your surplus.
TV Licence.............................. 9.95
Satellite/Cable TV...................... 65 - should this be shown as 0 and moved into surplus? This will have to come out of your surplus.so 0
Internet Services....................... 0 - included in Satellite/Cable TV
Groceries etc. ......................... 500 the OR will probably allow about £350ish
Clothing................................ 100 The OR may or maynot cut this. I would leave as is and suck it and see.
Petrol/diesel........................... 200 - this is for one car Might be worth keeping reciepts so you can prove usage.
Road tax................................ 10 - this is for one car

Car maintenance (including MOT)......... 10 - this is for one car, it is low because the car is less than a year old How old is it?
Car parking............................. 50 - this is for one car
Other travel............................ 110 - this is my partners monthly travel card for work (she is not able to claim from employer)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 10
Contents insurance...................... 13.94
Life assurance ......................... 0
Presents (birthday, christmas etc)...... 30 some OR'S allow and some won't so leave and see.
Haircuts................................ 40 £10 per adult.
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 50 This will probably be disallowed.
Car Finance............................. 230 - this is for our car which is 4 months into a 3-year Personal Contract Plan agreement. The car is essential for my current job however I am considering leaving this job due to stress (as I mentioned in my first post)
Total monthly expenses.................. 3520.14

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 13000 - not sure if this should be included here - this is the value of the car but it is under a Personal Contract Plan
Other assets............................ 0
Total Assets............................ 198000

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 153000...(939.2)....7.48
Secured Debt.................. 56000....(600)......10.9
Total secured debts........... 209000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit cards & loan 1..........19232.6...900.......0 - the sum total of my partners unsecured debt
Credit cards 2.................31381.....600.......0 - the sum total of my own unsecured debt
Northern Rock..................30000.....223.9.....7.48
DFS Sofa.......................255.......51........0
Total unsecured debts..........80868.6...1774.9....-

Monthly Budget Summary
Total monthly income.................... 5,370
Expenses (including secured debts)....... 3,520.14
Available for debt repayments........... 1,849.86
Monthly UNsecured debt repayments....... 1,774.9
Surplus(deficit if negative)............ 74.96

Personal Balance Sheet Summary
Total assets (things you own)........... 198,000
Total Secured debt...................... -209,000
Total Unsecured debt.................... -80,868.6
Net Assets.............................. -91,868.6

I would really appreciate any advice that you can offer, and would like to thank you all again for your help so far.

You will probably get an IPA. This is where you pay a percentage of your surplus, from 50-70% to the OR for 36 months.

From Fermi's sticky


Income Payment Agreements/Orders.

IPO / IPA (Income Payment Orders and Income Payment Agreements) (IS)

FAQ - Income Payment Orders / Agreements ( IPO / IPA ) (IS)

OR's Case Help Manual - Income Payments Agreements (IS)

OR's Case Help Manual - Income Payments Orders (IS)

OR's Technical Manual - IPAs Assessment of real disposable income (IS)

Nil tax (NT) coding/IPAs (MSE)