Bankruptcy SOA and Questions

debitfreeme

Hi All,

I have over 30K worth of debit on overdrafts and credit cards and at the situation were creditors are chasing me often for payment with only around £50 left monthly after many budget plans. I can't see an end to the debit with my wife unable to work at the moment and possibly not for a few years yet with two children to bring up. I'm going to take some advise but are doing some research on going the bankruptcy route and have a few questions if some kind people can spend a few moments on their experience.

When looking at the forms it states assets, do you need to put my sons xbox360 and laptop he uses for school into this?

Some of our debit is in my wife’s name e.g. catalogues for school clothes etc. Do we both have to go bankrupt for this to be included? What happens with the joint bank account also?

I have included an SOA (first attempt) and would like some comments on what would be accepted and maybe decreased or increased? We have a 14 week old baby so sleep suits are always on the monthly shopping list at the moment.


Thanks you all for your time
Richard

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1759
Partners monthly income after tax....... 0
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 1936
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 25
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 550
Clothing................................ 70
Petrol/diesel........................... 100
Road tax................................ 16
Car Insurance........................... 50
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 0
Total monthly expenses.................. 1936

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Northern Rock Loan.............0.........0.........0
Natwest Overdraft..............0.........0.........0
Sainsbury Credit Card..........0.........0.........0
HSBC Loan......................0.........0.........0
HSBC Credit....................0.........0.........0
HSBC Overdraft.................0.........0.........0
Alliance and Leiceste..........0.........0.........0
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,936
Expenses (including HP & secured debts). 1,936
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 0
Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 2,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

fiveyearplan

debitfreeme wrote: »

Hi All,

I have over 30K worth of debit on overdrafts and credit cards and at the situation were creditors are chasing me often for payment with only around £50 left monthly after many budget plans. I can't see an end to the debit with my wife unable to work at the moment and possibly not for a few years yet with two children to bring up. I'm going to take some advise but are doing some research on going the bankruptcy route and have a few questions if some kind people can spend a few moments on their experience.

When looking at the forms it states assets, do you need to put my sons xbox360 and laptop he uses for school into this? No personal stuff like that needs to go on the forms. I didn't put any assets on my forms.

Some of our debit is in my wife’s name e.g. catalogues for school clothes etc. Do we both have to go bankrupt for this to be included? What happens with the joint bank account also? Wife's debt won't get included in your BR and all joint debt will fall to her if she doesn't declare BR herself.

I have included an SOA (first attempt) and would like some comments on what would be accepted and maybe decreased or increased? We have a 14 week old baby so sleep suits are always on the monthly shopping list at the moment.


Thanks you all for your time
Richard

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1759
Partners monthly income after tax....... 0
Benefits................................ 177 Is child benefit included here? If so, list it separately.
Other income............................ 0
Total monthly income.................... 1936
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 25
Mobile phone............................ 0 do you not have a mobile?
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 550
Clothing................................ 70
Petrol/diesel........................... 100
Road tax................................ 16
Car Insurance........................... 50
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40 not all ORs allow this but you could up your phone bill.
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 0
Total monthly expenses.................. 1936

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Northern Rock Loan.............0.........0.........0
Natwest Overdraft..............0.........0.........0
Sainsbury Credit Card..........0.........0.........0
HSBC Loan......................0.........0.........0
HSBC Credit....................0.........0.........0
HSBC Overdraft.................0.........0.........0
Alliance and Leiceste..........0.........0.........0
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,936
Expenses (including HP & secured debts). 1,936
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 0
Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 2,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

Hi and welcome debtfreeme. You've made a good start on your SOA and I've made a few comments in red above.

tigerfeet2006

If you have a joint account because you are linked the bank will close it. If there is no OD on it atm then the bank will usually remove your name if you ask. You will both need to go into the bank to do this.

If you need a bank account of your own then you can open a Co-op Cashminder or Barclays Cash account.

Your housekeeping is a bit high, £500 is the usual allowed. But if you want to leave it and see whether the OR will cut it then you can. You never know s/he may be generous.

Don't forget to join Freecycle https://www.freecycle.org and join your local groups. You can pick up all sorts of things for free.

debitfreeme

Thanks for the replies, making me feel a lot better today knowing I'm starting to do something about my debit.

The child benefit was included in the benefits section, so will amend tonight. I'll have a tweak with the figures to bring the houskeeping down. Looking at previous posts am I right in thinking unless you have £100+ surplus you might avoid an IPA (though 3 years is better than the current situation!)?

Do you setup a new bank account with Barcleys or Co-Op in advance and move all our direct debits/wages? Do the card with these accounts allow you to pay at stores e.g. Tesco?

Thanks
Richard

Zandytobedebtfree

You could also up your Holiday to £60-£80, as this is the ball park figure for a family of 4!!

fiveyearplan

debitfreeme wrote: »

Thanks for the replies, making me feel a lot better today knowing I'm starting to do something about my debit.

The child benefit was included in the benefits section, so will amend tonight. I'll have a tweak with the figures to bring the houskeeping down. Looking at previous posts am I right in thinking unless you have £100+ surplus you might avoid an IPA (though 3 years is better than the current situation!)? Its £99 and under - no IPA

Do you setup a new bank account with Barcleys or Co-Op in advance and move all our direct debits/wages? Yes, you can do this before BR. Do the card with these accounts allow you to pay at stores e.g. Tesco? Coop comes with electron card and Barclays comes with either cash card or connect card.

Thanks
Richard

You can open your bank account before BR but I wouldn't leave any money in any account on your BR day until you've spoken to your OR.

debitfreeme

I've just done some tweaking and they are below. This was ok until my wife reminded me that the £140 for my daugther from a previous relationship isn't included! Where should I put child maintenance payments, this isn't an offical agreement, just a working out on the CSA website? Some more tweaking tomorrow with the £140 killing the budget.

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.................... 1
Monthly Income Details
Monthly income after tax................ 1759
Partners monthly income after tax....... 0
Benefits................................ 41.59
Other income............................ 135.68
Total monthly income.................... 1936.27
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 80
Petrol/diesel........................... 100
Road tax................................ 16
Car Insurance........................... 50
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 26
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1912

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Northern Rock Loan.............0.........0.........0
Natwest Overdraft..............0.........0.........0
Sainsbury Credit Card..........0.........0.........0
HSBC Loan......................0.........0.........0
HSBC Credit....................0.........0.........0
HSBC Overdraft.................0.........0.........0
Alliance and Leiceste..........0.........0.........0
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,936.27
Expenses (including HP & secured debts). 1,912
Available for debt repayments........... 24.27
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 24.27
Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 2,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.