SOA - CCCS only advice BR - your advice needed

meerkatsmimm

Hi Everyone,

Firstly Hello - please find my SOA below to the best of my ability - it covers my partner and myself.


Monthly Income Details
Monthly income after tax...........
Partners monthly income after tax.......
Benefits............950
Other income...............1188...........
Total monthly income.................2138...

Monthly Expense Details
Mortgage................................ 1188
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 145
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 35
Mobile phone............................ 65 FOR BOTH
TV Licence.............................. 12
Satellite/Cable TV...................... 47.00
Internet Services....................... 20.00
Groceries etc. ......................... 300.00
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 30
Car Insurance........................... 42
Car maintenance (including MOT).........20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills.................
Buildings insurance..................... 25.00
Contents insurance...................... 17.00
Life assurance ......................... 33.30
Other insurance......................... 12 Medical
Presents (birthday, christmas etc)...... 30.00
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 40
Total monthly expenses..........2301.30

Cash.................................... 0
House value (Gross)..................... 199500
Shares and bonds........................ 0
Car(s).................................. 750 CAR
Other assets............................
Total Assets............................ 200250

UNSECURED DEBTS
Description.
Store cards & credit cards..............Debt..75000....Monthly...1 900
Total unsecured debts..........75000

Total monthly income.................... 2138
Expenses (including secured debts)....... 2301.30
Available for debt repayments........... 0
Monthly UNsecured debt repayments.......1900
Surplus(deficit if negative)............ -2063.30



We had our appointment with the CCCS debt counsellor and were told that our only option was BR as we would be unable to afford the £600/month DMP required to clear our debt in 10 years. Is this how a DMP works? I've read of others with DMP's with a much lower monthly over a longer time but this wasn't offered or suggested. I'm so confused as a result and don't know what to do now. We have a young child and I just want to get our finances sorted and move on with our lives for her sake.

I am currently seeking employment - but its tough to get a job locally. I'm an educated person and am considering going back to uni to do a post grad course to improve employment prospects but am not sure if there is much point if I'm going to be made BR.

Our property has had some valuations on it recently and it appears we haven't lost as much value off it as we thought - a bad thing as far as I can see given that there still remains some equity in it.

Our mortgage is 180k, but there is a 5% penalty for early repayment, so if we were to sell the property stands us about £189k before fees to agents and solicitors. A local agent valued it at £215k but couldn't tell me when it would sell if at all at that price, and another agent valued it at £199,500 but to be willing to accept offers of 5-10% less in order to get it sold - suggested a timescale of at least 4-5 months. In terms of BR how likely is it the OR will require the house?

A family member is paying our mortgage in order to keep the house - hence the additional income on the SOA.

Our debt is all credit cards and store cards, most over 4 years old and we've paid nearly £100k back to them over the past 4 years in interest just trying to keep the debts in order - we got married in 2004 and had a nice honeymoon but to be honest thats the last nice thing we had with the credit cards. Some debt comes from putting in a new kitchen and bathroom before that and the rest has been on just living.

Family have offered to give us more money to cover a repayment plan - and we are looking into whether we are entitled to more benefits also, but told by the counsellor that family contributions would have to be declared taxable income otherwise it couldn't go towards a DMP.

Any advice is greatly appreciated - especially about how we could make a DMP possible or any alternatives to bankruptcy.

DON79

Hi,

dmp's do not have to be repaid over a ten year period - what cccs maybe mean is that if it will take ten years or more, not all creditors will accept the payments if you have a large amount owed and the payments are going to be quite small to each creditor. dmp's don't always prevent further action being taken by creditors.

Re the property valuation - call the estate agent who valued just under the 200k back and ask how much you would get for a quick sale and see what the amount is. The OR always has an interest in the house as soon as you are declared BR and if you have equity, they have upto three years to realise any equity in the property after you go BR unless someone buys the beneficial interest in the property for you.

Have you looked into the possibility of an IVA if you are concerned about losing your house? call national debtline or cab or cccs to discuss this. but be careful and get proper advice because like going BR - an IVA is not for everyone either.

will have a look at your soa but bear in mind too that the soa for BR allows extra expenses which an soa for a dmp or an IVA may not allow.

Donna

DON79

meerkatsmimm wrote: »

Monthly Income Details
Monthly income after tax...........
Partners monthly income after tax.......
Benefits............950
Other income...............1188...........
Total monthly income.................2138...

Monthly Expense Details
Mortgage................................ 1188
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 145
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 35 - max £60 allowed for landline and mobile
Mobile phone............................ 65 FOR BOTH - ditto above
TV Licence.............................. 12
Satellite/Cable TV...................... 47.00 - has to be paid from surplus
Internet Services....................... 20.00 - ditto above unless essential for work or homework
Groceries etc. ......................... 300.00 - this can be increased if there are more than 2 of you - £450 approximately for a family of four.
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 30
Car Insurance........................... 42
Car maintenance (including MOT).........20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 - £5 per week per child
Medical (prescriptions, dentist etc).... 0 - £20
Pet insurance/vet bills.................
Buildings insurance..................... 25.00
Contents insurance...................... 17.00 - make sure has accidental damage cover
Life assurance ......................... 33.30 - make this £33 - the OR could have an interest in this depending on the type of policy
Other insurance......................... 12 Medical
Presents (birthday, christmas etc)...... 30.00 - not normally allowed but can leave it and see
Haircuts................................ 5 - £10 per adult and £5 per child
Entertainment........................... 0
Holiday................................. 0 - £40/£80 depending on how many it is for
Emergency fund.......................... 40 - not allowed
Total monthly expenses..........2301.30

Cash.................................... 0
House value (Gross)..................... 199500
Shares and bonds........................ 0
Car(s).................................. 750 CAR
Other assets............................
Total Assets............................ 200250

UNSECURED DEBTS
Description.
Store cards & credit cards..............Debt..75000....Monthly...1 900
Total unsecured debts..........75000

Total monthly income.................... 2138
Expenses (including secured debts)....... 2301.30
Available for debt repayments........... 0
Monthly UNsecured debt repayments.......1900
Surplus(deficit if negative)............ -2063.30

The car should be safe however unless it is essential for work or mobility reasons, the OR may be interested in taking it as an asset.

Hope this helps a little

Donna

meerkatsmimm

Hi,

Thanks for that.

No - the counsellor was very clear - said that if we were unable to pay off the debt in full within 10 years then a dmp was not for us at all - is this right?

With regards the house - the guy who valued at £199k said that if it were to go to auction - for a quick sale then it would be about £165k.

Got my first default letter today - and only missed the payment about 6 days ago!

Thanks--

T-T_4

meerkatsmimm wrote: »

No - the counsellor was very clear - said that if we were unable to pay off the debt in full within 10 years then a dmp was not for us at all - is this right?

Hi....
the DMP i am on at the moment would last for another 60 years or so...(3 years already )... but from experience i know that the reviews every 6 months to a year always want more money from you.....the DMP has allowed me to breathe again for a short while then its back to square 1, ( i know i cannot do this forever ) maybe that's how your particular counsellor works, as in expecting you to increase payments each review? i contacted my local council and went through them having tried the CAB 1st.

meerkatsmimm

Hi,

can I ask if family were able to put together a lump sum to go back to the creditors with for a full & final offer, what would be an acceptable sum?

meerkatsmimm

meerkatsmimm

meerkatsmimm want to let those struggling with debt...we are 3 yrs on, not any better off in all honesty, but still living in our own home (albeit with £6500 arrears) and £10K's of unsecured debt, but we are surviving and getting on with things so there is hope/light at the end of the tunnel for those who are feeling like there is no way out right now :-)

sundays

From the information you have provided you are clearly insolvent , and that is the reason for being declared BR. However you have equity and a car and both could be comprimised if you went BR. The car in particular if your not working.

You are in my opinion in a difficult position but because of your family helping it could be easier than previously thought , you could go bankrupt and keep the house if there is someone prepared to buy out the equity ie could be cheaper for family to do that , then the home is no longer at risk as it get reverted back to you, i say this as your talking of lump sums for full and final. Similar would apply to the car if the OR decided they had a intrest in it.
Recently a non worker on here lost their car, becuase they were not working , and the OR did not conisder it a necessesaity , they were like many a victim of the times. However they could have had a family member offer the OR money to keep it, so there were options.

BR is not a major problem for many only for those that have a jobs with restrictions on them.

lastly:
If you have been on mean tested benefits for over three months you may be able to get help towards the mortage intrest costs only, have you explored that yet.

meerkatsmimm

sundays wrote: »

From the information you have provided you are clearly insolvent , and that is the reason for being declared BR. However you have equity and a car and both could be comprimised if you went BR. The car in particular if your not working.

You are in my opinion in a difficult position but because of your family helping it could be easier than previously thought , you could go bankrupt and keep the house if there is someone prepared to buy out the equity ie could be cheaper for family to do that , then the home is no longer at risk as it get reverted back to you, i say this as your talking of lump sums for full and final. Similar would apply to the car if the OR decided they had a intrest in it.
Recently a non worker on here lost their car, becuase they were not working , and the OR did not conisder it a necessesaity , they were like many a victim of the times. However they could have had a family member offer the OR money to keep it, so there were options.

BR is not a major problem for many only for those that have a jobs with restrictions on them.

lastly:
If you have been on mean tested benefits for over three months you may be able to get help towards the mortage intrest costs only, have you explored that yet.

hi,
thanks for your response. we no longer own the car. we have another family member iminent and are managing to maintain our essential payments, utilities, mortgage interest etc. we no longer pay unsecured debt payments, and have not acknowledged them for at least 18 months.
we did not declare BR. We have defaults but all are over 18 months old and one CCJ, again 18 months old.

i bumped my thread up to let new subscribers know that nothing is as dire as it seems and to take hope from the fact that 3 yrs down the line we are still in our own home, keeping our heads above water on the essentials and even a few treats courtesy of this website.

take heart and dont let debt ruin your life...mr meerkat had a heart attack and i was suicidal before we realised this.

meerkatsmimm

sundays

how confusing, id agree it doesnt ness mean owing huge amounts of money means BR, but i played the same game as you for 6 years then went BR and am still in my own home and will continue to be so.