Bankruptacy or charging order

blind-as-a-bat_2

That sounds about right. Funny thing is they are breaking OFT guidlines by doing so

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

But getting anything done about it is the fun bit:rolleyes:

I think you already know its futile to try keep the house on those figures as you dont have enough to live, let alone offer your creditors anything

Forget the charging order for now, i dont think it is relavent anymore to be honest. Unless you can increase your income i think you need to face letting the house go, its the only solution i can see.

Queen

hi really hoping that he is back at work this week if so for the 1st 10 weeks he won't pay any tax so should bring home about £350 per week after then should be about £300 keeping fingers crossed

blind-as-a-bat_2

Can you do me a favour and re-do your S&A on https://www.makesenseofcards.com with those new income figures, its getting a bit hard flitting back and forth between threads.

I still think it will be tight to keep the house, the secure loan doesnt help, but need to see all the figures together to see all the possible angles

Queen

Congratulations on completing your SOA. What you need to do now is to highlight, copy and paste everything (yes, I mean everything) below the line into a post on the MSE website. When you have done that, you can type any other relevant information at the end of the post.

<===== Copy and paste EVERYTHING below this line into your MSE post =====>


Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 825
Secured loan repayments................. 120
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 90
Gas..................................... 67
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 44
Mobile phone............................ 75
TV Licence.............................. 11
Satellite/Cable TV...................... 47
Internet Services....................... 18
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 53
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 30
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 35
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2306

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(825)......0
Secured Debt.................. 17000....(120)......0
Total secured debts........... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................20200.....0.........0
B/Card.........................1150......0.........0
Egg............................1900......0.........0
Overdarft......................3500......0.........0
GE.............................500.......0.........0
HFC............................1500......0.........0
HFC............................1100......0.........0
Next...........................900.......0.........0
Total unsecured debts..........30750.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including secured debts)....... 2,306
Available for debt repayments........... 414
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 414

Personal Balance Sheet Summary
Total assets (things you own)........... 188,000
Total Secured debt...................... -182,000
Total Unsecured debt.................... -30,750
Net Assets.............................. -24,750

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Queen

Hi 3 adults and 1 teenager in house, 1 car

blind-as-a-bat_2

Can you just clarify that last post, 3 adults will raise the question why you are supporting the third, im taking it that they dont contribute.

It is important when looking at your I&E from a BR point of view, sorry if you have already said elswhere

Queen

Hi my sone is 18 and a full time student looking for partime work

blind-as-a-bat_2

Ok, then it may take a bit of arguing with an OR but should be OK

In short your I&E is not realistic to support your family/home/car as it stands, but if you OH can stay working it is doable to keep the house, but not pay your unsecured creditors.

There are holes for things you need, figures that are just too low to sustain long term, but there are things that can be reduced, but i am pretty sure that wont be enough to make a big enough differance to allow a surplus that is realistic to offer a payment to your creditors.

I need to go through your I&E to be sure but i think once your OH is back at work BR will still be your only option, but at least it will be an option as you may have a small surplus after tweaking your I&E.

Can you just confirm what area of the country you live in, by that i mean are you in an "average" cost area, is there anything that would cost more where you live? and what would your gas/electric will be without the arears payment.


I have to go out know will post again when i have had time to look at it a bit closer, maybe tommorow though

blind-as-a-bat_2

Unless I have made any serious errors (feel free to say if anyone spots anything) this is how I see your position.

Ok this would be a realistic, comfortable budget once your OH is back at work if you didn’t go BR, so includes things you could cut back on but maybe cant due to contracts etc But there is no surplus as it stands to maintain a payment to any creditors.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 825
Secured loan repayments................. 120
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 90
Gas..................................... 67
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 44
Mobile phone............................ 75
TV Licence.............................. 12
Satellite/Cable TV...................... 47
Internet Services....................... 18
Groceries etc. ......................... 560
Clothing................................ 150
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 53
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 30
Buildings insurance..................... 25
Contents insurance...................... 15
Life assurance ......................... 20
Other insurance......................... 35
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 60
Total monthly expenses.................. 2802

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(825)......0
Secured Debt.................. 17000....(120)......0
Total secured debts........... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including secured debts)....... 2,802
Available for debt repayments........... -82
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ -82

Personal Balance Sheet Summary
Total assets (things you own)........... 188,000
Total Secured debt...................... -182,000
Total Unsecured debt.................... -0
Net Assets.............................. 6,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

And this is what a pretty strict OR may leave after BR assuming you can keep the car

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 825
Secured loan repayments................. 120
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 50
Gas..................................... 67
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 44
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 90
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 53
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 35
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 0
Total monthly expenses.................. 2392

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(825)......0
Secured Debt.................. 17000....(120)......0
Total secured debts........... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including secured debts)....... 2,392
Available for debt repayments........... 328
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 328

Personal Balance Sheet Summary
Total assets (things you own)........... 188,000
Total Secured debt...................... -182,000
Total Unsecured debt.................... -0
Net Assets.............................. 6,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

And this is what I personally believe is what should be allowed by an OR, but will depend on the OR as to your chance of being allowed everything, and how much you are willing to argue.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 825
Secured loan repayments................. 120
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 50
Gas..................................... 67
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 44
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 560
Clothing................................ 120
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 53
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 35
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 60
Total monthly expenses.................. 2562

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(825)......0
Secured Debt.................. 17000....(120)......0
Total secured debts........... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including secured debts)....... 2,562
Available for debt repayments........... 158
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 158

Personal Balance Sheet Summary
Total assets (things you own)........... 188,000
Total Secured debt...................... -182,000
Total Unsecured debt.................... -0
Net Assets.............................. 6,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

If you where to carry on down the DMP route and you where able to get rid of sky, mobiles and internet but allow for needed things you have neglected from your original budget, in reality your best in my opinion would be this to allow a sustainable surplus to meet any unexpected events and allow a little for some enjoyment in life (classed as holiday amount, but this could be used to extend the emergency fund for unexpected expenses and be used for a little bit of a social life)

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 825
Secured loan repayments................. 120
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 90
Gas..................................... 67
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 44
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 60
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 53
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 35
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 60
Total monthly expenses.................. 2322

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(825)......0
Secured Debt.................. 17000....(120)......0
Total secured debts........... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including secured debts)....... 2,322
Available for debt repayments........... 358
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 358

Personal Balance Sheet Summary
Total assets (things you own)........... 188,000
Total Secured debt...................... -182,000
Total Unsecured debt.................... -0
Net Assets.............................. 6,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Judging by your creditor’s reaction so far I don’t think they are going to accept the £358 that’s left divided by 8 of them on a pro rata basis without a lot of hassle, if they will at all.. And you need to work out how long it will take and if they are willing to stop adding charges, otherwise you wont get anywhere with them. And this only works if you can get out of the sky and mobile contracts, if not you will have even less to offer

I see no reason why BR is not an option once your OH is earning again, your house is probably in zero equity in reality, so should be safe if you buy your BI back for the token amount from the OR, and your car’s value will also have dropped a bit, but the car is always the difficult thing to predict in BR and the value is near or above the top end usually allowed so will depend on the reason you need it and distances its needed for to justify such a high value vehicle.

Queen

Thank you for your help, I did not know that once he is back at wok the judge would say that we have enough income to live and pay credit etc, the car is needed for him to get to work and back, no direct bus from home to work if he was use txi this would cost £50 per week alone