Advice for Jvic28?

Waspeze

Jvic28 wrote: »

So If I went bankrupt all my debt would get written off including any shortfall in my flat sale.

Yes (there are a few exceptions, student loans for one) .. sometimes the mortgage holder tries to get you to sign something to make you liable for a shortfall which can cause complications but as a rule the shortfall will be included.

Might be worth having a search and a read of some threads relating to shortfalls to get a better idea of the process involved. (It's not something I have first hand experience of but there are lots of posters here who have )

Jvic28

Thanks. My student loan was paid off this year so thats done and dusted.

Jvic28

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1099
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1099

Monthly Expense Details
Mortgage................................ 410
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 50
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 24
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 20
Emergency fund.......................... 10
Total monthly expenses.................. 794

Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 75000

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 80000....(410)......6.14
Total secured debts........... 80000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
CCCS...........................9950......132...... .0
Dads Capital One...............1739......54........34.27
Dad............................1602......20....... .0
Total unsecured debts..........13291.....206.......-

Monthly Budget Summary
Total monthly income.................... 1,099
Expenses (including secured debts)....... 794
Available for debt repayments........... 305
Monthly UNsecured debt repayments....... 206
Surplus(deficit if negative)............ 99

Personal Balance Sheet Summary
Total assets (things you own)........... 75,000
Total Secured debt...................... -80,000
Total Unsecured debt.................... -13,291
Net Assets.............................. -18,291

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

This is my current SOA. With my 1st baby on the way does this really look feasable. I'm really worried about having debt hanging over my head.

I wish I could at least afford to get rid of my 1 bedroom flat but it's probably in -ive equity now so I'm stuck with it. I don't know what to do?

My boyfriend has kindly agreed to apply for a 0% card to put my Dads Capital One Debt on. This should help a lot so I'm going to try and get rid of that debt before the baby comes.

MrsTinks

Actually it does look possible because you will qualify for support from the government. Being in debt whilst pregnant whilst not ideal is not impossible - heck I'm pregnant and indebt but as Martin says: Debt isn't bad - Bad debt is bad Right now you can afford your debt so it's not technically a bad debt.
Looking practically - what is the maternity package your company offers? Have you looked into this yet? You may find it's not all bad and with the extra entitlements etc you might be ok.

dalip

Hi there
A couple of things stand out. Dentist & perscriptions are free now you are expecting so IF you go bc that will have to be removed. Also entertainment will not be allowed on your SOA.

Now the major worry is you have mentioned paying off your dads capital one. Can i ask what that is, as a big no no prior to bc is showing preference to any creditor. Apart from that there is no more i can add to what waspy has already suggested.Dx

Waspeze

If I understand this correctly

Basically you live in a relatively small 1 bedroomed flat which will not be suitable when you have the baby.. therefore ideally you would sell up and move in with B/F.
As the house is in negative equity and the market is slow, you may be forced into volantary repossession which would incur a hefty shortfall on your mortgage so as well as your current debts you could also be liable for 5,10 even 15k more depending on what the property sells at?
This, combined with your other debts would leave you in a vulnerable position as you would be on maternity leave and your income would have dropped?

(just trying to get in clear in my head )

One question... would your b/f be charging you rent or would you be living rent free?
I only ask as though your outgoings would go up due to debt they may also be reduced to to rent, sharing costs etc?

P.S. I know you're just throwing ideas around.. hence the questions

Jvic28

dalip wrote: »

Hi there
A couple of things stand out. Dentist & perscriptions are free now you are expecting so IF you go bc that will have to be removed. Also entertainment will not be allowed on your SOA.

This is for my contact lenses currently. I am not saying I want to go bankrupt by any means. It's my 1st baby and I have no idea how much this is going to cost me and if my current surplus will be enough.

dalip wrote: »

Now the major worry is you have mentioned paying off your dads capital one. Can i ask what that is, as a big no no prior to bc is showing preference to any creditor. Apart from that there is no more i can add to what waspy has already suggested.Dx

I am currently in a DMP so am aware I can't show prefernce to a creditor but technically it's not my creditor. I borrowed the money from my Dad on the agreement that I would repay the card including the interest which is only fair. Hopefully this will be gone by baby time as I'm going to put this debt on a 0% card my boyfriend is getting (hopefully!)

Jvic28

Waspeze wrote: »

If I understand this correctly

Basically you live in a relatively small 1 bedroomed flat which will not be suitable when you have the baby.. therefore ideally you would sell up and move in with B/F.


One question... would your b/f be charging you rent or would you be living rent free?
I only ask as though your outgoings would go up due to debt they may also be reduced to to rent, sharing costs etc?

I already live with him. I pay the mortgage he pays the other bills. If he bought somewhere in his name the situation would be similar. Either he pays mortgage I pay bills or we split it all 1/2 each. Should be similar costs to now except mortgage should be cheaper (my credit rating is poor hence high mortgage repayments) and no service charge.

Jvic28

Waspeze wrote: »

P.S. I know you're just throwing ideas around.. hence the questions

I know...thank you. Just hearing little suggestions here and there gets me thinking about other things or new ideas. All helpful and gratefully received.

Jvic28

MrsTine wrote: »

Actually it does look possible because you will qualify for support from the government. Being in debt whilst pregnant whilst not ideal is not impossible - heck I'm pregnant and indebt but as Martin says: Debt isn't bad - Bad debt is bad Right now you can afford your debt so it's not technically a bad debt.
Looking practically - what is the maternity package your company offers? Have you looked into this yet? You may find it's not all bad and with the extra entitlements etc you might be ok.

I haven't looked into what my company offers but I should imagine it's the bare minimum they have to as I get no perks whatsoever.

What sort of benefits do you get once you have a baby? Is there anything you can start claiming when you're pregnant?