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Going bankrupt

Had my own company, took a massive bad debt, I've spent 3 yrs doing 80 hrs/wk to try and put it right, can't do it any longer. House is almost in negative equity. Have decided to get out, give it back to bank, rent new house and go bankrupt. At least then I get a clean sheet otherwise I'll be an OAP before I'm clear.

I've done a budget which I'm going to submit to the OR later this week, we are 2 adults and 2 kids, any comments please?

Statement of Affairs and Personal Balance Sheet
Household Information

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details

Monthly income after tax................ 1850
Partners monthly income after tax....... 550
Benefits................................ 178
Other income............................ 0
Total monthly income.................... 2578

Monthly Expense Details

Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 825
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 50
Gas..................................... 55
Oil..................................... 0
Water rates............................. 60
Telephone (land line)................... 20
Mobile phone............................ 75
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 60
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 15
Other travel............................ 75
Childcare/nursery....................... 250
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 32
Presents (birthday, christmas etc)...... 40
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 20
Total monthly expenses.................. 2274


Assets

Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 201000


Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 190000...(0)........8
Total secured & HP debts...... 190000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
P C unsecured..................41000.....0.........0
J C unsecured..................14000.....0.........0
Total unsecured debts..........55000.....0.........-


Monthly Budget Summary

Total monthly income.................... 2,578
Expenses (including HP & secured debts). 2,274
Available for debt repayments........... 304
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 304

Personal Balance Sheet Summary
Total assets (things you own)........... 201,000
Total HP & Secured debt................. -190,000
Total Unsecured debt.................... -55,000
Net Assets.............................. -44,000

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

Comments

  • DON79
    DON79 Posts: 3,842 Forumite
    Fridgeman wrote: »
    we are 2 adults and 2 kids, any comments please?

    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 2
    Monthly Income Details
    Monthly income after tax................ 1850
    Partners monthly income after tax....... 550
    Benefits................................ 178
    Other income............................ 0
    Total monthly income.................... 2578
    Monthly Expense Details
    Mortgage................................ 0
    Secured loan repayments................. 0
    Hire Purchase (HP) repayments........... 0
    Rent.................................... 825
    Management charge (leasehold property).. 0
    Council tax............................. 150
    Electricity............................. 50
    Gas..................................... 55
    Oil..................................... 0
    Water rates............................. 60
    Telephone (land line)................... 20
    Mobile phone............................ 75 - max normally allowed is £60 for landline and mobile so this might need cut back unless essential for work.
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 20 - not allowed unless essential for work or schoolwork
    Groceries etc. ......................... 300 can increase this - I had £450 for a family of four.
    Clothing................................ 60
    Petrol/diesel........................... 40
    Road tax................................ 0 - you have to budget for this if you own a car - £15-£20
    Car Insurance........................... 0 - ditto above
    Car maintenance (including MOT)......... 0 - ditto above - £20-£25
    Car parking............................. 15
    Other travel............................ 75
    Childcare/nursery....................... 250
    Other child related expenses............ 45
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 20
    Buildings insurance..................... 0
    Contents insurance...................... 10 - make sure you have accidental damage cover
    Life assurance ......................... 0
    Other insurance......................... 32
    Presents (birthday, christmas etc)...... 40 - not normally allowed but leave it and see however it may be cut
    Haircuts................................ 40 - £10 per adult and £5 per child allowed
    Entertainment........................... 0
    Holiday................................. 40 - can increase this upto £80 at the most
    Emergency fund.......................... 20 - again not normally allowed but could leave it and see but again, may be cut
    Total monthly expenses.................. 2274

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

    Have made some notes for you, hope this helps a little.

    Donna :D
    BSC #215/No.1 Jan 09 Club
  • deedee_3
    deedee_3 Posts: 891 Forumite
    Fridgeman wrote: »
    Had my own company, took a massive bad debt, I've spent 3 yrs doing 80 hrs/wk to try and put it right, can't do it any longer. House is almost in negative equity. Have decided to get out, give it back to bank, rent new house and go bankrupt. At least then I get a clean sheet otherwise I'll be an OAP before I'm clear.

    I've done a budget which I'm going to submit to the OR later this week, we are 2 adults and 2 kids, any comments please? Am assuming it is just you going bankrupt

    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 2
    Monthly Income Details

    Monthly income after tax................ 1850
    Partners monthly income after tax....... 550 Is this your OH full wage or her contribution?
    Benefits................................ 178 Are these in your OH's name or yours?
    Other income............................ 0
    Total monthly income.................... 2578

    Monthly Expense Details

    Mortgage................................ 0
    Secured loan repayments................. 0
    Hire Purchase (HP) repayments........... 0
    Rent.................................... 825
    Management charge (leasehold property).. 0
    Council tax............................. 150
    Electricity............................. 50
    Gas..................................... 55
    Oil..................................... 0
    Water rates............................. 60
    Telephone (land line)................... 20
    Mobile phone............................ 75 Is this for 2 mobiles?
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 20 Is this essential for business use?
    Groceries etc. ......................... 300 £450/500
    Clothing................................ 60
    Petrol/diesel........................... 40 Is this really this low?
    Road tax................................ 0 why none?
    Car Insurance........................... 0ditto
    Car maintenance (including MOT)......... 0ditto
    Car parking............................. 15
    Other travel............................ 75 what is this?
    Childcare/nursery....................... 250
    Other child related expenses............ 45
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 20
    Buildings insurance..................... 0
    Contents insurance...................... 10 does this include accidental damage?
    Life assurance ......................... 0
    Other insurance......................... 32 what is this?
    Presents (birthday, christmas etc)...... 40 some allow, some don't. You could leave and see.
    Haircuts................................ 40£10 per adult £5 per child
    Entertainment........................... 0
    Holiday................................. 40 £60
    Emergency fund.......................... 20 not allowed
    Total monthly expenses.................. 2274


    Have made some comments for you. If you can just clarify a few points for us then we can help a little further.
    Namaste DeeDee x
  • It is both of us going BR otherwise the bank will sting us for any losses incurred whilst our former house is sold. Also the joint acct etc for which we are both liable.

    I have a company car from my new employers, I have to pay a small fee / mile for private use, hence I show fuel costs but no insurance, tax etc.

    The mobile costs are for the two of us, myself £50, my wife £25 / month.
    I use mine for personal and business, again the company chips in a part of the cost.

    As I work remotely from the office, I have to scan and e-mail jobsheets and other work in on a daily basis. The office also send me new work and background info photos etc by e-mail. Hopefully this will justify the broadband to be an allowable expense.

    Wife doesn't drive so Other travel is her bus fares to work.

    £32 is health insurance to pay for glasses, major dental work etc.

    Many thanks to the contributors, hopefully we can come out the other side of this and start moving forwards again and regain our lives.
  • Hiya - have you taken advice from the CAB/National Debtline or anything like that yet??
    Get free advice before embarking on bankruptcy: CCCS 0800 138 1111 National Debtline 0808 808 4000
    Business Debt Line 0800 197 6026 CAB Insolvency Service- 0845 602 9848
    "He who laughs last didn't get it!" :rotfl:BSC 134

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