Here Is Our Soa...ready For Bankruptcy ANY ADVICE

philnicandamy

robpw2 wrote: »

i was helping and i do not believe that you need to spend £500 a month on grocerys , Not with the amount of cheap products out there ,

if you dont like my advice thats up to you but i could show you how to live exremely well of £250-300 a month for a family of five its all about plannning and not buying things you dont need .

but you seem to forget....this is BR & Living with it NOT DFW

chelseabun_3

Rob, your comments are quite correct - for people who are trying to live as frugally as possible. However on this board we are trying to help people establish an achievable level of outgoings following BR, and cutting things to the bone may mean they end up in the financial soup again, which the OR would not look kindly on.

The folks who post here for advice HAVE to be able to maintain a realistic level of expenditure for a prolonged period of time, and have absolutely no financial cushion to fall back on if things go pear shaped. So although I totally agree that a family of five can survive on far less that £500 per month, they can't do that indefinitely. The housekeeping budget for a BR has to cover everything not included elsewhere on the SOA including emergencies, not just groceries. If the fridge breaks down while you're a BR, the money for a replacement has to come out of housekeeping.

So, I'm really not having a go at you, I think DFW's a great board and very useful, but we have different aims here.

LOONEY_HOUSE

THANK YOU ALL FOR YOUR SOUND ADVICE
WE ARE TRYING TO DO OUR SOA CORRECTLY,ANY ADVICE ON AMOUNTS FOR CLOTHING,FOOD ETC ETC,WHAT ELSE CAN WE ADD AND FOR HOW MUCH
MANYTHANKS.#
LOONEY HOUSE

LOONEY_HOUSE

chelseabun wrote: »

Rob, your comments are quite correct - for people who are trying to live as frugally as possible. However on this board we are trying to help people establish an achievable level of outgoings following BR, and cutting things to the bone may mean they end up in the financial soup again, which the OR would not look kindly on.

The folks who post here for advice HAVE to be able to maintain a realistic level of expenditure for a prolonged period of time, and have absolutely no financial cushion to fall back on if things go pear shaped. So although I totally agree that a family of five can survive on far less that £500 per month, they can't do that indefinitely. The housekeeping budget for a BR has to cover everything not included elsewhere on the SOA including emergencies, not just groceries. If the fridge breaks down while you're a BR, the money for a replacement has to come out of housekeeping.

So, I'm really not having a go at you, I think DFW's a great board and very useful, but we have different aims here.[THANKS FOR THIS,YOUR RIGHT WE NEED TO UP EVERYTHING ANY IDEAS AND WHAT IS DWF]

anniecave

I think they mean debt-free-wanabee -
the point being made is that if you are preparing figures for bankruptcy the the figures can be a bit higher in terms of what you might need
If you are trying to cut down everything to absolute minimum in the short term to pay off debt (DFW) then you could spend actually less

You both need to work out what of your expenditure relates to your jobs. Eg your car/petrol costs may be mainly to do with your work. You will need to know how many miles you do for business and how many personal, as these figues are important. I'm not sure how you split out insurance costs for example, maybe it's just in proportion to your mileage? Your petrol costs would be fairly easy to figure out from mileage. You'd also be apportioning car maintenance etc costs. Also I'm not sure how depreciation is treated on a business or personal car?
This business expenditure can then be deducted off your income (and properly budgeted for) before looking at any other expenditure.

And I would personally keep paying the buildings insurance on your old house. Are you trying to sell this or is a mortgage company repossessing or what?

LOONEY_HOUSE

hi there
we have walked away therefore will be getting repossesded
looney house

LOONEY_HOUSE

what would be a good figure to put down per month for a family of 5 and 1 dog for food please'
also do they ask to see receipts of your food shopping etc

deedee_3

deedee wrote: »

Clothes £100, medical £20, holiday £50

You need to round your figures to the nearest £.

rent 725
water meter 45
gas/electric 90
phone 25
internet for kids 20 Won't be allowed on your SOA. Will have to come out of surplus unless needed for work.
btvision 20 ditto
car ins 45 due to area
van ins 47 due to area
buildings ins 19.34 for mortgaged house stop paying this.
contents 29.54
tv licence 11.29
food 500 try £600
public liability 11.66 you need to deduct any business expenses before putting down your wage.
ni 23.00
breakdown 12
petrol 500 for both due to live further away from schools and my work.
mobile phones 60 for 2
football,cubs,swimming 80 £5 per child per week
car maintence 50.
tools 25
adding the above up looks like we got left approx 717,
IS THERE ANYTHING ELSE WE NEED TO ADD OR MARK UP OR DOWN PLEASE HELP.

MANYTHANKS

Is your income minus all claimable business expenses. I am pretty certain that you take these off your income first to find your household income so I think some of the things that are on your SOA will fall under that but one of the folks who know more than I do will advise on it soon I am sure.

These are my comments earlier in your thread. As mentioned by Anniecave you do need to work out your business expenses properly and deduct them to find your true wage and then redo this.

fiveyearplan

LOONEY_HOUSE wrote: »

we have now moved out as advised by a company Do you want to keep your home? Can you afford the mortgage, are you in negative equity? (no names mentioned)we were paying a fee of 700 to help us but has been a huge let down so we have decided to apply for bankruptcy ourselves.
my children do cubs,football,simming etc do they allow this
now we have moved out here is what we pay now so will we have an ipa or ipo.
any advise needed!desperate now as missed payment on my ccj on 25th


Also, I know you are a hairdresser but where do you work ie in a salon, mobile, from home etc?
rent 725
water meter 45
gas/electric 90
phone 25
internet for kids 20 either add to phone or deduct as business expense
btvision 20 could be a business expense if you work from home - to entertain clients while they are having their hair done.
car ins 45 due to area One car could be business expense if you need it for work - what does your OH do for a living?
van ins 47 due to area
buildings ins 19.34 for mortgaged house what would you really like to do with your mortgaged property?
contents 29.54
tv licence 11.29 12.00
food 500 I think its £461 for 2 adults, 2 children so its probably higher than £500 for family of 5.
public liability 11.66 business expense - deduct from income
ni 23.00 business expense - deduct from income
breakdown 12 could be business expense
petrol 500 for both due to live further away from schools and my work.
mobile phones 60 for 2 again business expense
football,cubs,swimming 80 this is too high
car maintence 50. could be business expense
tools 25 same
adding the above up looks like we got left approx 717,
IS THERE ANYTHING ELSE WE NEED TO ADD OR MARK UP OR DOWN PLEASE HELP.

MANYTHANKS

[

Its very important to know your working situation, I understand you are a self employed hairdresser but where do you work, what does your OH do?

Alot of your expenses above should be deducted before income as they are business expenses and you could not have your income if you didn't have that expense etc. Do you have to rent a space for hairdressing?

What would you like to do with your home? If you want to stay in rented accommodation the shortfall of your mortgage will definintely go into your BR if you and OH are both going BR, if only one of you is going BR and it is a joint mortgage, the shortfall would go to OH.

Council tax arrears will go into your BR IFAND ONLY IF you have had a final demand for them, then if it is for this current year I think they write the whole amount off as the final demand will have the full amount in it.

Good luck and keep asking away - if you're unsure of any of the questions I've asked - just say.

LOONEY_HOUSE

hi all
what a great xmas pressie we are now officially BANKRUPT,we did our soa ourselves in the end ,i don't know why we were so worried our court was really helpful and the judge was lovely.we got a call from official receiver while we were there and they said they would contact us with in 2-3 weeks and i cant wait for that now!
our bank accounts still running online so i take it they not frozen yet and i put a phone contract in it too and am still using it so will this be frozen we we speak to official reciever again in 2-3 weeks#
also judge said why did we move out our house so i take it i may be able to speak to our mortgage company as they still think we living there(god what a sitution)the or said i can to speak to the examiner on thursday about this as i believe we are in negative equity so now hoping we could go back to our home!i know i was silly to move out but with 3 kiddies ,xmas busy working i could not cope with all the letters and phonecalls with threats of baillifs

anyway these were the figures we put down on our soa in the end,as i decided with alittle help from our head teacher i should be at home with my kids as they all behind at school and she wrote a letter ready stating this so here goes;;;

hubby wage 2080
wife wage 230
child ben 176
total2486 per month
the above amounts are take home


outgoings
rent 725
house keeping 400
gas & electric 90
water 45
telephone(2 mobiles and landline)100
petrol 480(2 cars needed as wont get paid)
clothes 50
council tax 128
life ins 29
van ins 47
car ins 45
pet ins 19
tv licence 12
breakdown 12
pet wormer,flea treatment and vets 20
dentist ,prescriptions 20
hubby tools 20
pocket money 24
hobbies 60
contents ins 28
ni contribution (for 2)24
car tax 30
car/van maintenence 50
public liability 13

total 2459
leaves us with 27

what do you think
when will accounts stop working on internet etc

manythanks and happy crimbo to you all!
also this is for 2 adults and 3 kids