Don't know where to start

MS_Dolphin

Hi,

I'm a little bit overwhelmed by all the information and don't really know where to start. I'm quite happy to keep reading all the posts and information here, but would like to ask a couple of quick questions please.

If I decided bankruptcy was best option, how long would it take from filling in forms to getting into court and basically to the point where I can go back home and close the doors to all the screaming?

Also, I have lots of debt, but my wife doesn't have any - she doesn't have any money either, but not £1 of credit.

Will this affect her? The house is solely in my name. We do have a joint bank accout that basically only has her wages going into it and no overdraft facility.

Thanks,

Dolphin

LOUISE22_2

Hello if your mrs doesnt have any debt and only you are going BK they cant really touch her. They will want to know how much she contributes to household though/mortgage/bills etc. Also if you have paid anything of hers off in the past - that will be looked at x

lxpeanut

MS_Dolphin wrote: »

If I decided bankruptcy was best option, how long would it take from filling in forms to getting into court and basically to the point where I can go back home and close the doors to all the screaming?

Where do you live?

I ask because it varies from area to area. The forms are given in when you arrive for your court date so there is no delay there but some areas have huge waiting lists. I've had to wait 2 months for a court date in Liverpool but in other places people just turn up in the morning and don't have to wait. From what I've heard Liverpool generally do the OR interview the same day whereas other areas you may have to wait two weeks after your court date. But once you have your bankruptcy number (which you get at court) you can pass that on to your creditors although it depends on who they are whether they then go away and leave you alone.

MS_Dolphin

Thanks for the replies.

lxpeanut

I live in Yorkshire. If anyone knows how long it takes in Yorkshire it would help.

LOUISE22

I've never paid off any debts for my wife as she's never had any, but she doesn't contribute a great deal (money wise that is) because she has her own commitments.

None of the debt is my wife's and while she is sympathetic, she works hard for a low wage and doesn't want to have to pay towards my debts - which I agree with.

maxmycardagain

Let's start at the very beginning


A very good place to start


When you read you begin with A-B-C



When you sing you begin with do-re-mi

maxmycardagain

I dont know the whole background to your debts/incomes,etc but your missus has equal shares in your house under common law, use that fact when Bi is mentioned

chelseabun_3

Hi Dolphin, and welcome!

Lots of issues here - your wife will not be expected to contribute to paying your debts at all. They will ask what her contribution to the household budget is, that's all.

Re the house, are you in equity, or negative equity? Either way, despite the house being in your name only, your wife would be seen to have a beneficial interest in it if she lives there! She would probably be offered the opportunity to buy the BI, which would be half the amount of equity. If it's in negative equity then she could buy the BI for £1 plus costs of approx £250 - but this is at the OR's discretion.

Have you spoken to the debt charities? They should be your first port of call for advice and info - details in the first sticky on this board.

You could also put your SOA up here, for folks to comment and advise on! Take care, CBx;)

MS_Dolphin

Thanks to all again.

The house has equity - I guess about £10k after a mortgage and secured loan.

If I were to sell this and put the equity to unsecured debt - all credit cards, I'd still owe about £25k.

I haven't spoken to anyone yet as if you look at my credit rating its actually excellent. I haven't missed any payment ever, but I'm living on credit cards now and my outgoings are about £1,000 more than I've got coming in especially as the credit card payments are taking a lot of the cash.

I'm self employed, so have no guaranteed income, but because of the crunch, its not looking good.

viv17

Please phone CCCS helpline they saved my life as my debt was making me ill. They helped me through my bankrupsy and give me other debt advice a year before. Also when the OR found out that the CCCS helped me they seemed pleased, I had taken good advice. Bankrupt and Happy....X

MS_Dolphin

I've had a go at the SOA.

I think it is pretty accurate, so here goes:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 865
Partners monthly income after tax....... 200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1065

Monthly Expense Details
Mortgage................................ 505
Secured loan repayments................. 207
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 67
Gas..................................... 0
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 15
Mobile phone............................ 47
TV Licence.............................. 12
Satellite/Cable TV...................... 57
Internet Services....................... 32
Groceries etc. ......................... 120
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 22
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 6
Contents insurance...................... 5
Life assurance ......................... 55
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1799

Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 200
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 146700

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 106500...(505)......5.69
Secured Debt.................. 29500....(207)......7.8
Total secured debts........... 136000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card 1..................3500......55........6.9
credit card 2..................5125......25........0
credit card 3..................8500......207.......8.9
credit card 6..................1450......37........13
credit card 5..................5420......25........0
credit card 4..................5760......25........0
Total unsecured debts..........29755.....374.......-

Monthly Budget Summary
Total monthly income.................... 1,065
Expenses (including secured debts)....... 1,799
Available for debt repayments........... -734
Monthly UNsecured debt repayments....... 374
Surplus(deficit if negative)............ -1,108

Personal Balance Sheet Summary
Total assets (things you own)........... 146,700
Total Secured debt...................... -136,000
Total Unsecured debt.................... -29,755
Net Assets.............................. -19,055

My partners income is what she can afford to contribute after paying her own commitments.

The £100 for entertainment is largely spent when I look after my son twice a week.

Other child expenses is maintenance - I pay 15% of my take home pay - a minimum of £150 if I earn less than this.

The secured loan will have a larger redemption figure but that is the current outstanding balance.

I know I can reduce the satellite payment, but can't stop it altogether because of tie in periods. Same for the mobile which I use for work anyway.

My income figure is what I've calculated as net last month. I took more cash than this, but have allowed for tax and NI.

The earliest of the 0% balances ends Jan.

Your comments would be welcome. I know I can cut down such as the satellite, but bills are pretty fixed.


Comments would be welcome.

chelseabun_3

Hi Dolphin,

Monthly Income Details
Monthly income after tax................ 865
Partners monthly income after tax....... 200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1065

Monthly Expense Details
Mortgage................................ 505
Secured loan repayments................. 207
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 67
Gas..................................... 0
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 15 50 - include internet in this
Mobile phone............................ 47 20 - Generally only allowed 20
TV Licence.............................. 12
Satellite/Cable TV...................... 57 0 - not allowed in SOA
Internet Services....................... 32 0 - include in landline
Groceries etc. ......................... 120 How many people is this for? Seems a bit low
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 22
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 25 What's this for?
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 6
Contents insurance...................... 5
Life assurance ......................... 55 Can you reduce this?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 0 - not allowed
Haircuts................................ 0
Entertainment........................... 100 0 - not allowed
Holiday................................. 0
Emergency fund.......................... 20 0 - generally not allowed
Total monthly expenses.................. 1799

You've got a very big deficit, and tbh, even with the reductions I've put in, it doesn't look as if you could go BR without losing your house, as the outgoings exceed your income so much. The OR won't let you go BR with a large monthly deficit, as it implies you wouldn't be able to afford to live even after BR. Losing the mortgage and secured loan payments would make it balance, however you still need to live somewhere, so rent payment would need to be included. Can your OH increase her contribution at all?

You really need advice from one of the debt charities, as they will be able to advise the best options for you. Sorry I can't be more help! CBx