going bankrupt soon any help

ohwell

Hi guys, Wow its pretty good to see so many people helping each other out. I am hoping someone out there can help with a few questions I have.

My OH and I are going bankrupt on the 6th of jan.

We have filled in the forms, albeit sort of, and are struggling a bit. I not only work in the evening but have started my own window cleaning business to try and make up on some of the wages I have lost from my eveing job because of the change in commission and targets. We have over spent but have also used credit cards for every day living as we dont have enough to pay all bills and debts that have incurred. we have got credit cards for the 0% they offer on balance transfers so we have kept doing that and paying the minimum amount. As we didnt have enough for day to day living, due to the drop in wages etc etc, we used cc for food shopping and the odd internet purchases.
I know the majority of this debt is our own fault and the remainder is from the acute loss in wages for me for the last year and half. We didnt realise just how bad it was untill we looked on experian re our credit. we had heaps of debt and were more shocked at the fact we hadnt realised just how bad it was. Good grief!!!!!:mad:
Anyway have gone onto cccs website and put all our details, earnings, outgoings etc onto thier calculator and it came up with bankruptcy....we couldn't believe that this was the best way to get out of our debt problem. It took me a month to pluck up the courage to tell my mother. She has always paid her way and would and still wont have anything unless she has the money in her hand to pay for things. I remember her working 18 hours a day to keep her 4 children fed clothed and with a roof over our heads. she did this all on her own and without getting into any debt whatsoever.:A I felt I had failed her and thought she would be very dissapointed, as I know I was, in me. She wasn't and she certainly wasnt judgemental. For this I will be eternally grateful to her. My OH told his family and again, they were very supportive. It has been a great help to have them stand by us.

I am deviating, sorry. Anyway, the forms we have to fill in ask for wages to include commission, overtime and bonuses. I cannot guarentee any of these but because I got a bit commission over the last three months it looks like I earn that as norm, the reality is that for the next three months I probabally wont and will be 150quid down for each of those months. Do the OR's actually take commission etc into account when working out your IPA/IPO. Also the self employment part has only just started and I dont know exactly how much tax I will usually pay on these earnings as Its not been going long enough to forcast. It asks for all of this on the bankruptcy petition and Im lost for what to put down. I have worked out what it might be if I continue at the same wage, but untill I get a tax return in april and send it back I will not know what i will need to pay re tax and NI. Also will the OR look at what I am bringing in re the self employed part and say that its not worth continuing as they could get more for van and equipment.
I am positive the business will continue, even in this climate as I am getting a good response from customers and am also getting new customers each month, albeit slowly.

Any help on the above, even tho I have gone on a bit, will be very welcome.

Thanks Guys

DON79

hi ohwell, just wanted to say welcome to the forum.

The OR will only base any IPA on your current income, not your past income so do not worry, they cannot take what you do not have. when you do fill out the forms, there are two extra pages on the back that you can put down additional information. Use this space to explain to the OR about how your wages will be calculated in the months following BR and that overtime/commission etc is not guaranteed to be available. The OR cannot recommend that you do not continue to work and you are usually allowed to keep the tools of your trade (van etc).

if you are still unsure about things do try getting more advice from national debtline too.

well done for confronting things and sorting them out. next thing you can do if you haven't already is prepare your soa and post it up here so we can try help you with it and tweak it. you can do this at www.makesenseofcards.co.uk.

best of luck for the 6th Jan, I am going BR the day after you.

ohwell

Hi Don and thankyou for your kind words.

I have yet to fill in the whole of the forms and need to try and explaine on there, my situation clearly, you are quite right.

I will try and get the soa on here tomorrow morning as we are running out of time. cripes.

Im looking forward to starting afresh, but the process is slightly worrying.....

Good luck for the 7th

DON79

Don't worry, you will get it done and can get lots of good advice on here. most of the people who have gone BR have found the court experience very positive from all I have read so do not worry about the court. And the OR tends to be ok, mostly good experiences too but they will ask lots of questions about your situation, but they are just doing their job too.

p.s. it is tomorrow!

I'm off to get some sleep.

ohwell

Blimey so it is.
goodnight and thanks for your support.

fiveyearplan

I would just put down what you think your average wage is. When it comes time for your OR interview he will want to see the last 3 months wage slips so that is when you can explain that the last 3 months were not really typical of your overall earnings. He may then want to see what the next 3 months pay is before deciding about IPA.

Why don't you put your SOA on here for us to look at to make sure you are claiming everything and for the highest amounts allowed. Be sure to say how many people in household. You want to get this right so let our experienced eyes have a look.

fiveyearplan

I just replied to your other thread - it looks like this has been posted twice.

ohwell

Hi fyp thanks for your reply on my duplicated thread. I dont know, im so used to writing things a million times what with the forms and stuff. I am going to put our soa on here soon to see what you guys think.

Thanks again

ohwell

I have put this on a new thread accidently so want to attach to this thread too.

here is our SOA, hope you can make sense of it, dont know if I have copied it properly.
The Pet ins/vet bills include the food as well as ins for 2 dogs 1 cat and 2 guinea pigs. should we put the food costs onto the groceries costs or leave it under the pet costs.
Also the child related costs include pocket money, school dinners, school trips and music lessons.

Thanks for looking





Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 829
Partners monthly income after tax....... 1219
Benefits................................ 125
Other income............................ 0
Total monthly income.................... 2173
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 118
Electricity............................. 125
Gas..................................... 0
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 28
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 55
Petrol/diesel........................... 190
Road tax................................ 31
Car Insurance........................... 50
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 43
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 64
Buildings insurance..................... 0
Contents insurance...................... 22
Life assurance ......................... 0
Other insurance......................... 15
Presents (birthday, christmas etc)...... 20
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 1934

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 1000
Total Assets............................ 4500

No Secured Debt
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................641.......14........0
credit card....................658.......17........0
credit card....................6073......152.......0
overdraft......................64........5.........0
overdraft......................1024......45........0
loan...........................23049.....311.......0
loan...........................3077......70........0
credit card....................7.5.......7.5.......0
credit card....................1900......74........0
credit card....................3003......67........0
Total unsecured debts..........39496.5...762.5.....-

Monthly Budget Summary
Total monthly income.................... 2,173
Expenses (including secured debts)...... 1,934
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 762.5
Amount short for making debt repayments. -523.5
Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total Secured debt...................... -0
Total Unsecured debt.................... -39,496.5
Net Assets.............................. -34,996.5
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.