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advice for potential br please

Hi to all who may advise and thank you in advance.

I have viewed many of the threads on this site and a lot of the questions i had have been answered but as each situation is different i thought i'd ask myself.
i have also spoken to national debt line who i found helpful
i live in 3 bed rented house as have joint residence of my children aged 9 and 5.
my debts are all unsecured, loans, credits cards,overdraft,hp

c/card debts 18k over 4 cards
bank debts 23k loan and o/d
hp debts 2k
my income is 1600 p/m

soa is

rent 750 private landlord
c/tax 95
gas 25 budget plan
elec 25 budget plan
water 35 budget plan
tv lic 12
csa 150
food 200

total £1292

car running costs
200 petrol
20 car tax
40 insurance
25 mot/ service.

total £285

I work as a contractor on a temporary basis as i have for 12 years and over the past year hourly rates have reduced in my case by about a third with no opportunity for any overtime to make up some of the loss.

I have not paid any creditors for a couple of months and having had phone calls /sent letters trying to explain my situation and work out a suitable arrangement(some more agreeable and helpful than others) i'm not sure what to do next.

my tenancy agreement has a clause about iva or br in the forfieture section which is a concern that is putting me off applying for br.
has any one had similar problems with tenancy

sorry to go on.
questions are my tenancy agreement queries, if i pay some creditors who are agreeable to arrangments will that be a problem for OR, and those that aren't will be pursuing me for payments.
i will add to this i'm sure but for now its all that springs to mind.

thanks again for any advice offered.

Comments

  • Hi FR and welcome:j

    I had a BR clause in my TA but i asked (begged) the OR not to inform my LL, and as the rent was upto date, he thankfully didn't. I've not heard anything from my LL and its been well over a year.
    Its risky, and causes many sleepless nights of worry after going BR, that they will find out.
    The choice is yours, tell the LL that you've gone BR and hope hes sympathetic, or hide it and hope the OR doesn't inform him.

    Its best to either pay no money at all to any creditors, or pay a token payment of, say £1 to all the creditors.
    If you pay more to some creditors then the Or doesn't look kindly on this.

    Hope that helps
    The first time we said hello, was the first time we said goodbye. As the angels took your tiny hand and flew you to the sky-you forever left us breathless. RIP my beautiful granddaughter :(
  • fiveyearplan
    fiveyearplan Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Hi and welcome Facing Reality. I have a couple of comments on your SOA. Your utilities look very cheap. You say you are on a budget plan, does that mean you just pay that much per month and then at the end of the year make up the difference? If so, read your meters and get a correct amount or you could find yourself owing hundreds (or doubtfully getting some refund). the amount for food/housekeeping looks to low for 1 + 2 part time. I don't really know how you would calculate that but 200 is normal for 1 person. Also you need to put down phone, do you pay for subscriptions. ANyway thats a great start on your SOA if you put in the amendments then others can add their thoughts too.

    :j :j


  • hi and thanks.
    the utilities have been set at that rate for a couple of years and i always read meters to insure that the costs are accurate.i am in credit by over £100 which will be used over winter. i contacted suppliers to determine if payments should increase as wholesale cost's are higher but they felt that my usage would be covered by the amounts i'm paying. i will ask again in november to look at it again.
    i did not add phone as didn't think it was allowed but sky,broadband and phone is 30 and mobile is 30.
  • Hi FR and welcome:j

    I had a BR clause in my TA but i asked (begged) the OR not to inform my LL, and as the rent was upto date, he thankfully didn't. I've not heard anything from my LL and its been well over a year.
    Its risky, and causes many sleepless nights of worry after going BR, that they will find out.
    The choice is yours, tell the LL that you've gone BR and hope hes sympathetic, or hide it and hope the OR doesn't inform him.

    Its best to either pay no money at all to any creditors, or pay a token payment of, say £1 to all the creditors.
    If you pay more to some creditors then the Or doesn't look kindly on this.

    Hope that helps

    hi and thanks.
    the payments i am making to creditors are for £1 and as yet not all creditors have agreed.
    tenancy is through a letting agents and i'm not sure if they would be the problem as owner of property seems ok and at the end of the day i'm paying the rent on time which is all they are worried about.
  • hi
    Another question i have is regarding tax code changes.
    when i spoke to one of the debt organisations they mentioned something about tax code changes after br. would the result of any change mean paying less or more income tax as that would have a knock on affect to income levels.
  • peachyprice
    peachyprice Posts: 22,346 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It makes not difference to your income level, all it means is that you'll be given a nil tax code and any money you would have paid in tax will no longer be deducted but you will have to put this to one side and pay it to a collection agent to give to the OR. A direct debit is usually set up. Until the end of the tax year, so 5 April 09, or unless you change job.
    Accept your past without regret, handle your present with confidence and face your future without fear
  • It makes not difference to your income level, all it means is that you'll be given a nil tax code and any money you would have paid in tax will no longer be deducted but you will have to put this to one side and pay it to a collection agent to give to the OR. A direct debit is usually set up. Until the end of the tax year, so 5 April 09, or unless you change job.

    thanks for clarifying that
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