DMP, IVA, BR??? Which?

hardworking_bob

You are right to be concerned about the potential implications on your job and future opportunities that BR poses. BR should always be a last resort (my opinion) but in some cases it might be the least painful and best option all round.

Why not post a SOA to see if someone can come up with ideas for you. Is it not possible to let out a room etc to rectify the shortfall in your income? That way it's poss to repay your arrears and try and reduce your debt. I feel for you and hope that you can find a way out...I know it must be hard but try to keep your chin up...there are plenty of people on this forum who will try to help you.

bikechic

aah thanks..

If I rented a room, that may bring £200 pm which could be used to start reducing debts. However, the long term problem of keeping the house doesn't get rid of the issues of maintenance on the house. My salary pays current mortgage and usual living bills only. the room rental would pay some debt, but i would still not have anything over for any clothing, a bottle of wine, visiting parents (which i can't do at the moment due to no money for fuel), money to pay for the car mot/breakdowns and so on.

I'm positive and resigned to moving - that's ok. I have realised that the house is taking up too much of my accommodation costs and know that renting will bring payments down to £400 - £450.

hardworking_bob

Could be the best thing all round. Just another thought. Is there any chance that you could speak to your parents to see if they can help? I know that this is not ideal and something that may not be enjoyable in speaking to them about this but I guess they would want to know...if I had children and they needed help - I'd want to know to try and help them.

In terms of getting the essential maintenance done...is you dad any good at DIY to fix the problems you have? I know that I'm a complete optimist but exploring every option (which I'm sure that you pretty much are doing) means that should you hand back they keys - atleast you can say that "you know what? I tried my best"....good luck BC!

bikechic

Hey Bob, yes - explored those options. Dad is poorly and lives 2 hours away so diy options not available there, nor offer of money to help either.

thanks!!:j

But good suggestions, keep them coming.

hardworking_bob

Hiya BC, why not post your SOA? There are some really helpful people on here...

bikechic

what does that mean, what do i have to do?? sorry - i'm a newbie.

bikechic

Ok, found it.. Here it is.

Not paying any of the secured or unsecured debts off at the moment.




Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1 - paid for, 2nd hand. use for work.
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 789.11 includes £100 arrears
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 60
Gas..................................... 50 - prepayment meter
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 44 includes internet ISP
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 36 - only vice.
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0 - don't seem to buy any.
Petrol/diesel........................... 40 - get some back from work as expenses, but that's included in net income.

Road tax................................ 10
Car Insurance........................... 18
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 free presc. don't go to dentist. have glasses.

Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0 - don't have any at mo.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1464.11

Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 90500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(789.11)...0
Secured Debt.................. 19000....(0)........0
Hire Purchase (HP) debt ...... 500......(0)........0
Total secured & HP debts...... 115500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
total unsecured................5000......0.........0
Total unsecured debts..........5000......0.........-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,464.11
Available for debt repayments........... -14.11
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -14.11
Personal Balance Sheet Summary
Total assets (things you own)........... 90,500
Total HP & Secured debt................. -115,500
Total Unsecured debt.................... -5,000
Net Assets.............................. -29,500

tinypawz

bikechic wrote: »

Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1 - paid for, 2nd hand. use for work.
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 789.11 includes £100 arrears
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90 do you have the single person reduction?
Electricity............................. 60
Gas..................................... 50 - prepayment meter
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 44 includes internet ISP sky do a pack for tv, landline and internet all for £37pm, no movies or sports tho.
Mobile phone............................ 45 Can you change to PAYG?
TV Licence.............................. 12
Satellite/Cable TV...................... 36 - only vice.
Internet Services....................... 0
Groceries etc. ......................... 200 - This can be halved with batch cooking, meal planning and very careful spending.
Clothing................................ 0 - don't seem to buy any.
Petrol/diesel........................... 40 - get some back from work as expenses, but that's included in net income.

Road tax................................ 10
Car Insurance........................... 18
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 free presc. don't go to dentist. have glasses.

Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0 - don't have any at mo.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1464.11

Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 90500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(789.11)...0
Secured Debt.................. 19000....(0)........0
Hire Purchase (HP) debt ...... 500......(0)........0
Total secured & HP debts...... 115500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
total unsecured................5000......0.........0
Total unsecured debts..........5000......0.........-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,464.11
Available for debt repayments........... -14.11
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -14.11
Personal Balance Sheet Summary
Total assets (things you own)........... 90,500
Total HP & Secured debt................. -115,500
Total Unsecured debt.................... -5,000
Net Assets.............................. -29,500

I've made some comments in red, by my calculations you could save £143 easily. That leaves around £130 to throw at you debts.

I know that drop in grocery money seams abit steep (thats what I thought when I had to do it), but I manage to feed me, lo & 2 cats! That includes cleaning stuffs, cat litter and nappies.

You'll get loads and loads of ideas from the Old style board.

Jesthar

Hi chic, and welcome I'm a single lass loving on her own, so I've put a few thoughts below

bikechic wrote: »

Ok, found it.. Here it is.

Not paying any of the secured or unsecured debts off at the moment.




Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1 - paid for, 2nd hand. use for work.
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 789.11 includes £100 arrears - the extra £100 goes in six months, right?
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 60 Any chance you can change providers on gas and elec ? There is at least one company which charges the same rate for prepayment as it does for normal accounts (Ebico)
Gas..................................... 50 - prepayment meter
Oil..................................... 0
Water rates............................. 40 Is that rates? £40 a month is very high for metered water for one person - more than I pay a quarter!
Telephone (land line)................... 44 includes internet ISP
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 36 - only vice. - any chance you can combine this and your home phone/broadband, would cost you a lot less for a combined basic package.
Internet Services....................... 0
Groceries etc. ......................... 200 - :eek: hon, I spend £80 or less on food a month, even buying some premium and organic things and a few treats, so I could go even lower. You can definitely eat better than you are on much less money, trust me.
Clothing................................ 0 - don't seem to buy any.
Petrol/diesel........................... 40 - get some back from work as expenses, but that's included in net income.

Road tax................................ 10
Car Insurance........................... 18
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 free presc. don't go to dentist. have glasses.

Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0 - don't have any at mo.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1464.11

Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 90500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(789.11)...0
Secured Debt.................. 19000....(0)........0
Hire Purchase (HP) debt ...... 500......(0)........0
Total secured & HP debts...... 115500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
total unsecured................5000......0.........0
Total unsecured debts..........5000......0.........-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,464.11
Available for debt repayments........... -14.11
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -14.11
Personal Balance Sheet Summary
Total assets (things you own)........... 90,500
Total HP & Secured debt................. -115,500
Total Unsecured debt.................... -5,000
Net Assets.............................. -29,500

I think you're probably right about letting the house go considering the amout of repair work you say it needs. In the meantime, though, you can make some reasonable savings on your outgoings, particularly food - check out the Moneysaving Old Style boards for loads of great advice on eating well on the smallest of budgets, you'll be amazed what they can do with practically nothing!

Oh, and if you are pretty certain you are going to be moving out soo, it may not be such a good idea to look at changing contracts on anything which would require x amount of months signup commitment, as you'd probably have to buy out the whole contract in full when you left...

*hugs*

~Jes

bikechic

Hiya !

Yes, the £600 goes in 6 months.

I can't change my provider until the arrears are paid up, i've tried before. I was on prepayment meters with gas and electricity, but now reverted the electricity due to arrears almost paid up - so some progress is being made.

The £40 for water is for water consumption (i'm on consumption meter) and also to start reducing arrears. I am aware that they can't cut you off, but have to show willing as I previously had them deducted out of my salary.

TV / Sky / internet / phone. I've just combined my phone and internet after changing ISP - so have made a start some months ago on reducing my outgoings. Have also been looking at BT vision too to add to my phone/internet package but am in a package with sky which needs notice to quit.

Yes, I do actually spend very little on food, sometimes dropping to £10 per week when I need gas/electric, or some extra fuel for the car and so on. It's always the food budget that gets hacked! I do batch-cook meals and freeze them, i do sometimes 'not' eat everyday too.. (not good) but I am actively reducing most things.

I do have single - person reduction on council tax. Did last year, get my car taken away for council tax arrears, but now have another car AND paid my council tax arrears - yay!

Mobile phone is in a contract - not due to expire yet.

Thanks everyone for all your help.

My intentions now are to not pay the next mortgage, use that £800 as a deposit and rent for another rented accommodation and then hand the keys back to mortgage lender when i've moved out. The plan then is to wait for the charging order debts to eventually return back to me in the form of unsecured debts when i will then be in a better position monthly to look at DMP, IVA or BR if applicable at that time.

keep those suggestions coming - I'm feeling good about making some positive decisions and choices - thanks everyone, much appreciated!

BC