BR - General Advice (inc. SOA)

Kelvyn_2

I have been on a DMP with CCCS for about a year now.
Income £1179 pm, mortgage £411pm (interest only, I have no endowment policy).

Just had a review and will now be paying £55pcm to CCCS for £19k debt.
(Debt free date - 2037)

Owe £66500 on mortgage, House on market at £67k, (estate agent wants to drop this by a further 13%) highest offer so far is £60k.
If I accept that offer, I need to find £1000 for E/Agent fees, plus solicitor fees or do they usually go on at the end (completion)? In which case another £9k would be added to my existing £19k.

If I was to just hand the keys back what would happen?
Do I advise Northern Rock that there is a potential buyer at £60k, but I can't afford to pay E/A fees & solictor fees?

I have a 1994 BMW 520, valued at £500 and couldn't get to work at the start time of 8am by public transport and live too far to cycle. What is likelyhood of keeping the car?

I can rent similar 2 bed mid-terrace properties for less than I pay on the mortgage and am not concerned about staying on the property ladder. (and I only need a 1 bedroom, so could lower rent).

What's my best plan of action?
CCCS were obviously only able to give general advice about bankruptcy and not suggest either way, I had originally wanted to go down the IVA route, but don;t have a high enough monthly repayment.


Here's my SOA.... what, if any figures should I change?

Mortgage (interest only) £411
Water - 22
Council tax - 62
Electric/Gas DUal Fuel - 100
Contents/Buildings Ins - 19
Land Line - 11 (to be cancelled prior to BR)
Mobile - 50
Insurances unemployment/sickness for mortgage - 31
TV Licence - 0 - Cancelled as I have just sold my TV
Satellite - £17 (cant cancel - 12 months isnt up till november)
Car spares/servicing- 15
Car Ins - 29
Car Tax - 17
Fuel & Parking - 152
Food, toiletries, cleaning - 100
Meals at work - 20
Tobacco - 20
Clothing - 12
Hairdressing - 6
Medicines - 2
Dentist/Opt - 5
Papers/Mags - 5
Hobbies etc - 15
sundries/emergencies - 10


Total = 1131
Surplus = 48

I know that when going BR I may have to pay an IPA and that once the house side of things is sorted some of those bills will lessen/disappear.
Where should I be removing spend and loading in the other areas.

I don't want to underbudget on certain areas and leave myself struggling again after going BR.

Notgotapottoweein

Hi Kelvyn

We had our house with Northern Rock and to be honest in our case they were very slow in repossessing. We stopped paying our mortgage in October 07 and they did not take it back until last Tuesday so 11 months in total. Might give you food for thought there.

I can't see them being interested in your car at that value. I had my car taken after we went bankrupt and was able to go and buy another one for £900 which the OR said was fine as long as i didn't try to get credit for that amount ( as if lol )

Plus you need your car for work so you will be ok there i'm sure.

I would tell northern rock of the situation regarding the offer.

hope this helps and good luck.

Kelvyn_2

Should I tell NR that I am considering bankruptcy when I call them?

Should I stop paying the mortgage for a couple of months, allowing myself to build up first months rent and bond for somewhere else? Or would that look worse when filing for BR?

Don't really want to go BR but can see no other option (a life of repayment).

tigerfeet2006

Hi and welcome to the board.

What most pople do is stop paying the mortgage and save for the rental and BR fee's from that. Move out of the property and into rental. Go BR and inform the mortgage company that you wish the house to be reposessed.

Will just go and look at your SOA.

tigerfeet2006

Kelvyn wrote: »

Here's my SOA.... what, if any figures should I change?

Mortgage (interest only) £411 Obviously this will change when you rent.
Water - 22
Council tax - 62
Electric/Gas DUal Fuel - 100
Contents/Buildings Ins - 19
Land Line - 11 (to be cancelled prior to BR) Why?
Mobile - 50 very high you may have to reduce this. But leave and see, especially if you have no landline.
Insurances unemployment/sickness for mortgage - 31 Obviously this will go when you move
TV Licence - 0 - Cancelled as I have just sold my TV Do you want a TV? If so allow £12
Satellite - £17 (cant cancel - 12 months isnt up till november) You can have this but it can't be put on your SOA and will have to come out of surplus.
Car spares/servicing- 15
Car Ins - 29
Car Tax - 17
Fuel & Parking - 152
Food, toiletries, cleaning - 100 You can up to £180
Meals at work - 20 This will have to go into housekeeping.
Tobacco - 20 Will have to come out of surplus
Clothing - 12 upto £30
Hairdressing - 6 up to £10
Medicines - 2 £10
Dentist/Opt - 5 £15
Papers/Mags - 5 Not allowed will have to come out of surplus.
Hobbies etc - 15 ditto
sundries/emergencies - 10 some will allow, some won't so leave and see.
holiday £20


Total = 1131
Surplus = 48

I know that when going BR I may have to pay an IPA and that once the house side of things is sorted some of those bills will lessen/disappear.
Where should I be removing spend and loading in the other areas.

I don't want to underbudget on certain areas and leave myself struggling again after going BR.

That should get you started. Obviously at the moment we don't know if your utilities will be until you move so leave them as they are now.

Kelvyn_2

Thanks.
The biggest puzzler is the house, speak to NR and advise them of the offer, or move into renting ASAP and let them repossess?


I shall have to juggle my SOA a bit as you've indicated, and I'm aiming to rent for around £350 a month.
Does the OR look at previous CCCS DMP plans?
I don't like to lie, but wouldn't want to stop smoking and having the odd bottle of wine, can I up my housekeeping to say the allowed figure of £180 and remove tobacco/hobbies from my SOA?

Cancelling phone as I use my mobile rather than the landline, only ever had it for broadband and have now cancelled the broadband.

RichyRichRich_2

Im shortly going BR will i keep be able to keep my car its fully financed upto 17k

Kelvyn_2

About 2/3rds of the way down this page should help;
http://forums.moneysavingexpert.com/showthread.html?t=1056083

Notgotapottoweein

Kelvyn wrote: »

Thanks.
The biggest puzzler is the house, speak to NR and advise them of the offer, or move into renting ASAP and let them repossess?


I shall have to juggle my SOA a bit as you've indicated, and I'm aiming to rent for around £350 a month.
Does the OR look at previous CCCS DMP plans?
I don't like to lie, but wouldn't want to stop smoking and having the odd bottle of wine, can I up my housekeeping to say the allowed figure of £180 and remove tobacco/hobbies from my SOA?

Cancelling phone as I use my mobile rather than the landline, only ever had it for broadband and have now cancelled the broadband.

Hi Kelvyn.

No don't tell NR you are considering bankruptcy.

If you decide to go down the bankruptcy route then stop paying all creditors immediatly cancel all dd's except for house hold bills and CT etc.

If you owe money to your bank it might be wise to move banks so they don't take your money.

Plan carefully as to when you want to do it so that you have enough money for to pay for the fees, you'll probably need 6 months rent in advance or a guarentor. moving costs etc.

As i said our experience with northern rock ( and i appreciate it may be different ) was that we stopped paying the mortgage around october 07 and other debt saved our cash and moved out in Jan 08 prior to bankruptcy in Feb 08.And the only finally took back the house last Tuesday.

Read scarletts diary there is some good info on northern rock in there.

good luck.

Kelvyn_2

I have the £500 in my savings account ready for bankruptcy, but will need a couple of months of not paying mortgage to save for rent, or vice versa, rent now then save BR fee.

I shall speak to CCCS again tonight and probably cancel my DD's tommorrow and look for somewhere to rent, then I can work out my actual SOA once I have moved into rented place.

Notgotapottoweein

Kelvyn wrote: »

I have the £500 in my savings account ready for bankruptcy, but will need a couple of months of not paying mortgage to save for rent, or vice versa, rent now then save BR fee.

I shall speak to CCCS again tonight and probably cancel my DD's tommorrow and look for somewhere to rent, then I can work out my actual SOA once I have moved into rented place.

Sounds like a good idea to me.

good luck