Ooh err ... what a fine mess!

DelhiBelly_2

Property interest: 5YP also mentioned that I would be deemed to have an interest in this property (not the Welsh one). I took independent legal advice on this one (because it is of critical importance to my OH apart from anything else) from an insolvency sol and he wrote to say that since my OH had always owned this in her own right, & I had not made any material contributions to the place, this would not be taken into account.
I am struggling to understand how you have not made a "material contribution" to the property when your SOA shows mortgage and secured loan totalling nearly £1700pm and your wife only earning £400pm so therefore you are paying the majority of the mortgage and secured loan. I don't know how long you have been doing this, but I would definitely get a second opinion on a potential beneficial interest

ChampagneCharlie

Hi DelhiBelly

You have misunderstood: the mortgage is on a property I own elsewhere. The property I am living in has always belonged to my OH and is mortgage free.

CC.

ChampagneCharlie

Hi everyone again, back from the world or work...

Right here goes, SOA #2, for your scrutiny:

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................ 3600
Partners monthly income after tax....... 400
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 4300

Monthly Expense Details

Mortgage................................ 1360
Secured loan repayments................. 350
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 150
Gas..................................... 10
Oil..................................... 245
Water rates............................. 58
Telephone (land line)................... 40
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 130
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 60
Car maintenance (including MOT)......... 85
Car parking............................. 10
Other travel............................ 25
Childcare/nursery....................... 50
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 20
Buildings insurance..................... 100
Contents insurance...................... 25
Life assurance ......................... 40
Other insurance......................... 20
Presents (birthday, christmas etc)...... 35
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 10
Child maintenance....................... 75 (by court order)
Total monthly expenses.................. 3204

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 301500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 332409...(1360).....0
Secured Debt.................. 20000....(350)......0<
Barclays comm loan.............98000.....-.........0
Total secured & HP debts...... 450409....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclays overdraft.............1000......0.........0
Farm account...................2158......0.........0
NatWest Mastercard.............8045......0.........0
Boarding school fees ..........27000.....0.........0
Prep school fees debt..........1780......0.........0
Barclaycard....................4148......0.........0
Cahoot Visa....................5384......0.........0
Egg Visa.......................8685......0.........0
Total unsecured debts..........58200.....0.........-

Monthly Budget Summary
Total monthly income.................... 4,300
Expenses (including HP & secured debts). 3,204
Available for debt repayments........... 1,096
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,096

[Personal Balance Sheet Summary
Total assets (things you own)........... 301,500
Total HP & Secured debt................. -450,409
Total Unsecured debt.................... -58,200
Net Assets.............................. -207,109

Can someone explain to me how the 'Available for debt repayments' figure is arrived at? (When I became redundant back in Sept 08 I stopped all credit card and mortgage payments as I had no income.)

Furthermore is this the sort of sum the OR will expect me to find per month - and for how long, the length of my BR or beyond that?

ChampagneC

Lensman_2

A quick anwer is this. Your surplus is £1096. The amount left after living expenses are taken in to account.

The OR will want 70% of this for 3 years.

affluenza

Perhaps it is a little simplistic, but it is the total income minus your stated expenses.

If you are saying that you don't have that money, do you have any idea where it is going, and I don't mean to sound petty when I say do you give yourself pocket money, is it a tenner here and there to your children, your wife borrows forty, your lunchtime round in the pub, were you buying things for the company?

Is the income other than your business absolutely guaranteed every month for the next three years.

I may have misunderstood your question - but if you are missing that grand then it is leaking somewhere.

From what I understand is that there is a sliding scale above £99 disposable income ranging from 50% to 75% and as the other post suggested it is best to err on the side of caution.

Maybe - I don't know but should your wife's income be in there at all? It is her business not yours, I don't know, maybe someone can clarify the position of spouses incomes.

Lensman_2

You need some good advice about your OH's home. If you can show the OR that it is solely hers, they will not take it.

If you are not careful the OR might see it as an available asset and require it to be sold.

JCS1

ChampagneCharlie wrote: »

Hi everyone again, back from the world or work...

Right here goes, SOA #2, for your scrutiny:

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................ 3600
Partners monthly income after tax....... 400
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 4300

Monthly Expense Details

Mortgage................................ 1360
Secured loan repayments................. 350
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 150
Gas..................................... 10
Oil..................................... 245
Water rates............................. 58
Telephone (land line)................... 40
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 20 you may need to prove essential for work/school
Groceries etc. ......................... 130 For 2 adults and 2 children? Increase to £500?
Clothing................................ 0 £75-100 for 2 adults and 2 children
Petrol/diesel........................... 0 nothing here?
Road tax................................ 0 or here?
Car Insurance........................... 60
Car maintenance (including MOT)......... 85
Car parking............................. 10
Other travel............................ 25 may have to explain what this is if OR allows you to keep car
Childcare/nursery....................... 50
Other child related expenses............ 10 Increase, one child activitiy per week is allowable
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 20
Buildings insurance..................... 100 Seems high, may need to give proof of this.
Contents insurance...................... 25
Life assurance ......................... 40 Will be classed as an asset and will be dealt with by the OR. 3 options: a) keep paying and when something happens money goes to OR, b) let policy lapse, c) buy OR's interest for £50. Assuming no surrender value
Other insurance......................... 20
Presents (birthday, christmas etc)...... 35 Not allowed
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 50 increase to £100 to cover emergency fund and presents
Emergency fund.......................... 10 Not allowed
Child maintenance....................... 75 (by court order)
Total monthly expenses.................. 3204

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 301500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 332409...(1360).....0
Secured Debt.................. 20000....(350)......0<
Barclays comm loan.............98000.....-.........0
Total secured & HP debts...... 450409....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclays overdraft.............1000......0.........0
Farm account...................2158......0.........0
NatWest Mastercard.............8045......0.........0
Boarding school fees ..........27000.....0.........0
Prep school fees debt..........1780......0.........0
Barclaycard....................4148......0.........0
Cahoot Visa....................5384......0.........0
Egg Visa.......................8685......0.........0
Total unsecured debts..........58200.....0.........-

Monthly Budget Summary
Total monthly income.................... 4,300
Expenses (including HP & secured debts). 3,204
Available for debt repayments........... 1,096 Income less expenses
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,096

[Personal Balance Sheet Summary
Total assets (things you own)........... 301,500
Total HP & Secured debt................. -450,409
Total Unsecured debt.................... -58,200
Net Assets.............................. -207,109

Can someone explain to me how the 'Available for debt repayments' figure is arrived at? (When I became redundant back in Sept 08 I stopped all credit card and mortgage payments as I had no income.)

Furthermore is this the sort of sum the OR will expect me to find per month - and for how long, the length of my BR or beyond that?

ChampagneC

Also, regarding the house that you own, as this is not the family home (i.e. the one you live in) this will usually vest in the OR straightaway to deal with. Only the family home has nothing done with it for the first 12 months.

ChampagneCharlie

Hi Lensman & Affluenza

Regarding my OH's home, you might recall this was what I got specialist legal advice about and was told, in writing, that it is safe. This is naturally of the greatest concern to me & the OH and is imperative that we have this right - hence the specialist advice.

About the disposable income side, I am confused. In addition to the £1096 it says here is surplus income, when I go BR, then presumably my property, worth about £300k (perhaps even less now), will be repossessed. That will therefore mean I won't have to pay the mortgage (and all the other things) - which will free up even more income n'est ce pas? Am I being hyper-thick?


But there will be pipeline expenses to take into account after repossession, like removal expenses, finding a new home for my mum that will accept her dogs etc, etc. what about those?

CC

ChampagneCharlie

Hi JCS 1

Thanks for the resume of my SOA.

Coupla points:

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................ 3600
Partners monthly income after tax....... 400
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 4300

Monthly Expense Details

Mortgage................................ 1360
Secured loan repayments................. 350
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 150
Gas..................................... 10
Oil..................................... 245
Water rates............................. 58
Telephone (land line)................... 40
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 20 you may need to prove essential for work/school Yes for my elder child
Groceries etc. ......................... 130 For 2 adults and 2 children? Increase to £500? My mistake, have reset to £500.
Clothing................................ 0 £75-100 for 2 adults and 2 children
Petrol/diesel........................... 0 nothing here? My mistake - I lost the info of my first SOA and rushed recalc' ing another. I'll post draft 3 later tonight
Road tax................................ 0 or here? Ditto
Car Insurance........................... 60
Car maintenance (including MOT)......... 85
Car parking............................. 10
Other travel............................ 25 may have to explain what this is if OR allows you to keep car put in to see if I could ...!
Childcare/nursery....................... 50
Other child related expenses............ 10 Increase, one child activitiy per week is allowable OK - see #3 to follow
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 20
Buildings insurance..................... 100 Seems high, may need to give proof of this.
Contents insurance...................... 25
Life assurance ......................... 40 Will be classed as an asset and will be dealt with by the OR. 3 options: a) keep paying and when something happens money goes to OR, b) let policy lapse, c) buy OR's interest for £50. Assuming no surrender value Correct. Will let lapse
Other insurance......................... 20
Presents (birthday, christmas etc)...... 35 Not allowed
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 50 increase to £100 to cover emergency fund and presents
Emergency fund.......................... 10 Not allowed
Child maintenance....................... 75 (by court order)
Total monthly expenses.................. 3204

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 301500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 332409...(1360).....0
Secured Debt.................. 20000....(350)......0<
Barclays comm loan.............98000.....-.........0
Total secured & HP debts...... 450409....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclays overdraft.............1000......0.........0
Farm account...................2158......0.........0
NatWest Mastercard.............8045......0.........0
Boarding school fees ..........27000.....0.........0
Prep school fees debt..........1780......0.........0
Barclaycard....................4148......0........ .0
Cahoot Visa....................5384......0.........0
Egg Visa.......................8685......0.........0
Total unsecured debts..........58200.....0.........-

Monthly Budget Summary
Total monthly income.................... 4,300
Expenses (including HP & secured debts). 3,204
Available for debt repayments........... 1,096 Income less expenses
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,096

[Personal Balance Sheet Summary
Total assets (things you own)........... 301,500
Total HP & Secured debt................. -450,409
Total Unsecured debt.................... -58,200
Net Assets.............................. -207,109

What about the expenses I will incur when I lose my Shropshire property - see my last on this?

CC

ChampagneCharlie

Something fishy is going on here ... the figs have re-calc'd very much more in my favour. Maybe because I re-jigged them following JCS 1's advice (altho JCS I have to say that you and 5YP don't always agree on what's allowed and what isn't - I suppose its subjective and I can expect the same with an OR?)

Anyway - does this look more like it to everyone?:

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................ 3600
Partners monthly income after tax....... 400
Benefits................................ 0
Other income............................ 300 (NB. this will cease as soon as BR)
Total monthly income.................... 4300
Monthly Expense Details
Mortgage................................ 1360
Secured loan repayments................. 350
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 150
Gas..................................... 10
Oil..................................... 245
Water rates............................. 58
Telephone (land line)................... 40
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 500
Clothing................................ 85
Petrol/diesel........................... 500
Road tax................................ 14
Car Insurance........................... 60
Car maintenance (including MOT)......... 70
Car parking............................. 10
Other travel............................ 25
Childcare/nursery....................... 50
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 20
Buildings insurance..................... 100
Contents insurance...................... 25
Life assurance ......................... 40
Other insurance......................... 20
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 100
Emergency fund.......................... 10
Child maintenance....................... 75
Total monthly expenses.................. 4188

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 301500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 332409...(1360).....0
Secured Debt.................. 20000....(350)......0<
Barclays comm loan.............98000.....-.........0
Total secured & HP debts...... 450409....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclays overdraft.............1000......0.........0
Farm account...................2158......0.........0
NatWest Mastercard.............8045......0.........0
Boarding school fees ..........27000.....0.........0
Prep school fees debt..........1780......0.........0
Barclaycard....................4148......0.........0
Cahoot Visa....................5384......0.........0
Egg Visa.......................8685......0.........0
Total unsecured debts..........58200.....0.........-

Monthly Budget Summary
Total monthly income.................... 4,300
Expenses (including HP & secured debts). 4,188
Available for debt repayments........... 112
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 112
Personal Balance Sheet Summary
Total assets (things you own)........... 301,500
Total HP & Secured debt................. -450,409
Total Unsecured debt.................... -58,200
Net Assets.............................. -207,109