Some advice re SOA please

Dorothy56

A bit confused and concerned here. I read somewhere that you can have too high a monthly income to go bankrupt, is that correct? To me it would be that all things are relative i.e. if your income is only 10k a year but you owe 10k it could be too much for you to pay back. So if your annual income is 110K but you owe around 140k surely that can still be grounds for bankruptcy if you can't afford the payments to pay it back - is that right?


Thank you

ClaireLR

Hi Dorothy,

I would say it all depends on your outgoings to, you might earn £10k a year (for instance), but your outgoings could be £15k inc debts, therefore by going BR you reduce your outgoings to help you stay within what you earn.

Hope that makes sense, it's late!

So_Sad_Angel

Hi Dorothy56

I admit that currently I fall in that category & find it confusing.

My understanding is that -If your income is sufficient to adequately `service` the outstanding debt...ie by Debt Management Plan for example & you can still afford to cover the household stuff then technically you are not in a bankrupcy position . Its when the serviceablity is not workable that BR becomes apparent.

Obviously this can also be affected by any `asset` holdings that may be available such as equity in property / shares / savings.

Hope that helps..I`m still learning!

Angexx

Dorothy56

Thanks for that Claire.

Our income is very high, but so are our outgoings - for a start there are 11 of us in our family, 4 adults and 7 children, so a lot to spend out on.

If we paid what we should on our debts it would be about £4,500 a month, which we just can't manage. We tried a dmp at 2345 per month, but even then other necessary big expenses kept cropping up which meant we couldn't pay it.

I will try to put up my SOA and see what people think.

So_Sad_Angel

Hi Dorothy.

Everything is relative...the strain is just as hard if it is low income / high outgoings or high income / even higher outgoings!!! We all live to our earnings & beyond ...& its so,so easy to exceed income.

By taking steps to resolve your situation I congratulate you....post the SOA when you can.

Angiexx

Dorothy56

Hi Ange

No we have no other assets at all, so there is nothing to sell.

And we couldn't manage the DMP at the rate they set. We also found our creditors were not prepared to freeze the interest, so it was just dead money.

I'll put together our SOA and see what people think, have to say I have been a bit worried about doing it as so many on here have such low incomes.

Dorothy

ClaireLR

Dorothy56 wrote: »

Hi Ange

No we have no other assets at all, so there is nothing to sell.

And we couldn't manage the DMP at the rate they set. We also found our creditors were not prepared to freeze the interest, so it was just dead money.

I'll put together our SOA and see what people think, have to say I have been a bit worried about doing it as so many on here have such low incomes.

Dorothy

This was the problem I had, my DMP was £90 a month which I was managing, the only problem was that there were a few creditors that would not freeze interest - therefore everything I was paying was just going nowhere.

Don't be worried, we're all here for the same reason at the end of the day

blind-as-a-bat_2

in·sol·vent (n-slvnt)
adj.
1.
a. Unable to meet debts or discharge liabilities; bankrupt.
b. Insufficient to meet all debts, as an estate or fund.

Sort of covers it, if your insolvent the you can declare BR simple(in an ideal world whatever that is )

So_Sad_Angel

ClaireLR wrote: »

This was the problem I had, my DMP was £90 a month which I was managing, the only problem was that there were a few creditors that would not freeze interest - therefore everything I was paying was just going nowhere.

Don't be worried, we're all here for the same reason at the end of the day

Reading those last couple posts I realise that although I am in DMP I`m not really getting anywhere as the debt is still increasing as most are not freezing interest. Guess Banks can`t afford to freeze interest anymore! The only one to freeze interest has been Barclaycard...but seems drop in the ocean!!!

Angexx

Rylynn

Dorothy a low income does not mean they are any different to you. You state 4 adults, and 7 kids, that is more than the average on here for a start, so you have a different set of things on your SOA as you have to account for all the people and costs, however WHO and how many are going BR?

What you need to do is stick on your SOA, no one here bites, we are all in the same boat, one that is sinking or sunk, and we are all trying to sort it out.

I am thinking here, 7 kids 4 adults FOOD bill, clothes bill are not going to be like mine me and one huge!! 14 year old son, so yes all things are relevant.

Please do not be put off due to your earnings, if they do not match your outgoings you are in the same boat aren't you. Survival is not just about how much you earn, it has to also do with how many you have to feed, clothe, heat and water!

So post up more on your situation and people here will help, also take note of the numbers of the charity debt lines and give one a call and make it SOON.

Take care and chin up, life is never that box of chocolates, but sharing can help you see the light at the end of the tunnel.

RL

blind-as-a-bat_2

Dorothy56 wrote: »

Hi Ange

No we have no other assets at all, so there is nothing to sell.

And we couldn't manage the DMP at the rate they set. We also found our creditors were not prepared to freeze the interest, so it was just dead money.

I'll put together our SOA and see what people think, have to say I have been a bit worried about doing it as so many on here have such low incomes.

Dorothy

Dont worry about that Dorothy56 we have seen both ends of the scale, at the end of the day if you cant pay your debt now it is irelavent if you have a big surplus after BR, and it means you will contribute a reasonable sum to your BR estate in an IPA, so for those who like to take a pot shot claiming a moral highground, at least you will be paying what you can afford in the form of an IPA so you are doing the best you can end of story;)