not original at all - any advice greatfully received though - super long post sorry

w-inthepoo

Having been a serial lurker for the last 3 days and nights straight and read as much as I could until it hurt I want to run this by those in the know (no offence to cab or nat debt line and cccs - but each time I have spoken to them - 3 times each - I have been given conflicting info)
I've kind of brain dumped everything there is below, partly for the thoughts of the wise and partly for theraputic reasons. Reading it back it kind of feels that I have been a bystander in my life for a long time , and I am very ready now to take back the control that I had let slip.

Its a very long post so sorry in advance......

Situation in a nutshell

1. House well under water - Mrt = 277000 Sec Loan = 72000 in todays market its gone from 380000 to 295000, Total payments are 1253
2. Unsecured debt comes in at 32000 and includes some tax that has crawled out of the woodwork and costs about 1100
3. Then on top of this OH has upped and left with youngest son in tow and is getting 300 maintenance as calculated by CSA calc
4. I also have my son from a previous relationship
5. My net pay is 2900 pm and then all the general day to day of insurance, bills etc to contend with comes to my net net p/m is -750
6. -750 is used on the basic soa calc on making sense of cards and so includes zero firivolity and within limits as provided by the OR spreadsheet
7. Some how I have managed like this for over a year and have reduced down the -1000 it was to -750 though income maximisation.
8. Where did it all go - divorce and listening way to much to pita ex wife and poorly trying to dig my way out of it - conolidation etc etc
9. Oh and its in my name too

IVA?
I did look into this and the best I could manage on the unsecured debts was to bring my payments down to 178 per month, however that would leave me the princely surplus of 74 which over its life would be highly unsustainable given that the second the interest rates change upwards the game is up and the IVA terms breached

Leaving me to consider BR

1. Stop paying everyone
2. Accumulate deposit and rent in advance and move into rented accomodation
3. Go BR
4. Allow mortgaged property to be repossessed, put short fall in to the BR

My questions are....
Am I correct in thinking that BR outweighs an IVA in these circumstances?
If BR is the correct path then is the above a correct / standard path to take

If this is the right way forward then as far as my BR SOA goes it would look like this....
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2878
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2958

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1400
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 55
Gas..................................... 60
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 40
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 260
Clothing................................ 35
Petrol/diesel........................... 60
Road tax................................ 12
Car Insurance........................... 45
Car maintenance (including MOT)......... 18
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 75
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 16
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 75
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 25
Emergency fund.......................... 0
maintenance............................. 303
student loan............................ 75
Total monthly expenses.................. 2853


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1950
Other assets............................ 0
Total Assets............................ 1950

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,958
Expenses (including HP & secured debts). 2,853
Available for debt repayments........... 105
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 105

Personal Balance Sheet Summary
Total assets (things you own)........... 1,950
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 1,950

Notes on this

1. In as far as this goes I see a surplus of 105 however 80 of this is from CB which I gather is not in the calculation also. Is this correct?
2. I have put down 2 children as the youngest will be with me for a small portion of the time too (though have only calculated costs based on me and one child) Should this be changed?
3. Rent average rent within a 3 mile radius of son's school is 1300 property is smaller than mortgaged house. Moving any close to work would put rent up and moving any further away would get me sacked for lateness, reduces cost of getting to school significantly and could get to work in time just. Also would be renting it prior to BR, and OR guidance only refers to excessive mortgages. So is more than mortgages on property but is fixed and sustainable unlike the current interest rate of .5% Thoughts?
4. Life insurance includes critical illness cover. Couldn't find guidance on this, Any ideas?
5. My job does attract a bonus but this is in no way guaranteed
6. My work is IT related so its very susceptable to market conditions

Again sorry for the very long post but any thoughts as to the above would be much appreciated

dalip

w-inthepoo wrote: »

Having been a serial lurker for the last 3 days and nights straight and read as much as I could until it hurt I want to run this by those in the know (no offence to cab or nat debt line and cccs - but each time I have spoken to them - 3 times each - I have been given conflicting info)
I've kind of brain dumped everything there is below, partly for the thoughts of the wise and partly for theraputic reasons. Reading it back it kind of feels that I have been a bystander in my life for a long time , and I am very ready now to take back the control that I had let slip.

Its a very long post so sorry in advance......

Situation in a nutshell

1. House well under water - Mrt = 277000 Sec Loan = 72000 in todays market its gone from 380000 to 295000, Total payments are 1253
2. Unsecured debt comes in at 32000 and includes some tax that has crawled out of the woodwork and costs about 1100
3. Then on top of this OH has upped and left with youngest son in tow and is getting 300 maintenance as calculated by CSA calc
4. I also have my son from a previous relationship
5. My net pay is 2900 pm and then all the general day to day of insurance, bills etc to contend with comes to my net net p/m is -750
6. -750 is used on the basic soa calc on making sense of cards and so includes zero firivolity and within limits as provided by the OR spreadsheet
7. Some how I have managed like this for over a year and have reduced down the -1000 it was to -750 though income maximisation.
8. Where did it all go - divorce and listening way to much to pita ex wife and poorly trying to dig my way out of it - conolidation etc etc
9. Oh and its in my name too

IVA?
I did look into this and the best I could manage on the unsecured debts was to bring my payments down to 178 per month, however that would leave me the princely surplus of 74 which over its life would be highly unsustainable given that the second the interest rates change upwards the game is up and the IVA terms breached

Leaving me to consider BR

1. Stop paying everyone
2. Accumulate deposit and rent in advance and move into rented accomodation
3. Go BR
4. Allow mortgaged property to be repossessed, put short fall in to the BR

My questions are....
Am I correct in thinking that BR outweighs an IVA in these circumstances? Only you can decide which road to take
If BR is the correct path then is the above a correct / standard path to takeif you decide this is the way to go then yes.

If this is the right way forward then as far as my BR SOA goes it would look like this....
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2878
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2958

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1400
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 55
Gas..................................... 60
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 40
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 260
Clothing................................ 35
Petrol/diesel........................... 60
Road tax................................ 12
Car Insurance........................... 45
Car maintenance (including MOT)......... 18
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 75
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 16
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 75
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 25
Emergency fund.......................... 0
maintenance............................. 303
student loan............................ 75
Total monthly expenses.................. 2853


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1950
Other assets............................ 0
Total Assets............................ 1950

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,958
Expenses (including HP & secured debts). 2,853
Available for debt repayments........... 105
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 105

Personal Balance Sheet Summary
Total assets (things you own)........... 1,950
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 1,950

Notes on this

1. In as far as this goes I see a surplus of 105 however 80 of this is from CB which I gather is not in the calculation also. Is this correct?yes. There are areas where you could increase expenditure if need be;)
2. I have put down 2 children as the youngest will be with me for a small portion of the time too (though have only calculated costs based on me and one child) Should this be changed?no leave it
3. Rent average rent within a 3 mile radius of son's school is 1300 property is smaller than mortgaged house. Moving any close to work would put rent up and moving any further away would get me sacked for lateness, reduces cost of getting to school significantly and could get to work in time just. Also would be renting it prior to BR, and OR guidance only refers to excessive mortgages. So is more than mortgages on property but is fixed and sustainable unlike the current interest rate of .5% Thoughts?this is the only area where i am concerned. £1400 a month rental is high. I am no house expert so will that to those who are
4. Life insurance includes critical illness cover. Couldn't find guidance on this, Any ideas?the OR may well be interested in this. They do sometimes let you buy it back for£50,but the actual expenditure per month may not be allowed(or cut) as that too is high
5. My job does attract a bonus but this is in no way guaranteedIF you got a bonus you would need to inform the OR if /when it hapened You may/may not get to keep it,would depend on which side of the bed the OR got out that morning;)
6. My work is IT related so its very susceptable to market conditions.

Again sorry for the very long post but any thoughts as to the above would be much appreciated

Have made a few comments,others will be along soon with their views.Dx

ps WELCOME:D

w-inthepoo

Hi Dalip many thanks for the comments and welcome.
I hear you on the soa in that some areas are light but was erring on the side of caution though any pointers would be great.

IVA and BR - the mort is interest only and back in the day when it was 5% it was costing 1400 to service so if the rates go up during the life of the IVA which they will then it won't take long to make that +74 disappear and be back in the poo again.

The rental does seem high, but I can see no guidance on it in the OR pages other than it is variable and whilst it is marginally higher than the average it creates savings in travel to school and helps me keep my job. I mean if I moved 12 miles away from school I could rent for 1000 - 1100 but then that would lead to serious other complications and I am keen not to put children through that

Presumably the OR would have sight of rent agreements etc so everything could be shown to be what it is?

Thanks again

dalip

w-inthepoo wrote: »

Hi Dalip many thanks for the comments and welcome.
I hear you on the soa in that some areas are light but was erring on the side of caution though any pointers would be great.will go through your i&e when i have finshed answerig this post

IVA and BR - the mort is interest only and back in the day when it was 5% it was costing 1400 to service so if the rates go up during the life of the IVA which they will then it won't take long to make that +74 disappear and be back in the poo again.i do actally agree. A lot of peope take out IVA's,without realistically looking at the drawbacks. Desperation does that:o

The rental does seem high, but I can see no guidance on it in the OR pages other than it is variable and whilst it is marginally higher than the average it creates savings in travel to school and helps me keep my job. I mean if I moved 12 miles away from school I could rent for 1000 - 1100 but then that would lead to serious other complications and I am keen not to put children through that

Presumably the OR would have sight of rent agreements etc so everything could be shown to be what it is?

Thanks again

Basically the OR would have a knowledge of what rental price's are for your area and NEEDS. If he/she thinks the property is more than you actually need(single person living in a 4 bedroom house)then he could cut back on the amount he allows for your rent iyour i&e. He can not tell you where to live.It would be up to you to argue the point if it was ever questioned.Dx

dalip

w-inthepoo wrote: »

Having been a serial lurker for the last 3 days and nights straight and read as much as I could until it hurt I want to run this by those in the know (no offence to cab or nat debt line and cccs - but each time I have spoken to them - 3 times each - I have been given conflicting info)
I've kind of brain dumped everything there is below, partly for the thoughts of the wise and partly for theraputic reasons. Reading it back it kind of feels that I have been a bystander in my life for a long time , and I am very ready now to take back the control that I had let slip.

Its a very long post so sorry in advance......

Situation in a nutshell

1. House well under water - Mrt = 277000 Sec Loan = 72000 in todays market its gone from 380000 to 295000, Total payments are 1253
2. Unsecured debt comes in at 32000 and includes some tax that has crawled out of the woodwork and costs about 1100
3. Then on top of this OH has upped and left with youngest son in tow and is getting 300 maintenance as calculated by CSA calc
4. I also have my son from a previous relationship
5. My net pay is 2900 pm and then all the general day to day of insurance, bills etc to contend with comes to my net net p/m is -750
6. -750 is used on the basic soa calc on making sense of cards and so includes zero firivolity and within limits as provided by the OR spreadsheet
7. Some how I have managed like this for over a year and have reduced down the -1000 it was to -750 though income maximisation.
8. Where did it all go - divorce and listening way to much to pita ex wife and poorly trying to dig my way out of it - conolidation etc etc
9. Oh and its in my name too

IVA?
I did look into this and the best I could manage on the unsecured debts was to bring my payments down to 178 per month, however that would leave me the princely surplus of 74 which over its life would be highly unsustainable given that the second the interest rates change upwards the game is up and the IVA terms breached

Leaving me to consider BR

1. Stop paying everyone
2. Accumulate deposit and rent in advance and move into rented accomodation
3. Go BR
4. Allow mortgaged property to be repossessed, put short fall in to the BR

My questions are....
Am I correct in thinking that BR outweighs an IVA in these circumstances?
If BR is the correct path then is the above a correct / standard path to take

If this is the right way forward then as far as my BR SOA goes it would look like this....
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2878
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2958

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1400
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 55
Gas..................................... 60
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 40
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 260if need be up to £300 and mention your other child
Clothing................................ 35this could be increased to £60
Petrol/diesel........................... 60ditto=£80
Road tax................................ 12
Car Insurance........................... 45
Car maintenance (including MOT)......... 18
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 75
Other child related expenses............ 10 £20 allowed £5 per child per wk for after schol activities
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 16£20
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 75
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10some OR'scdo not allow but leave it and see
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 25£30-£35
Emergency fund.......................... 0
maintenance............................. 303
student loan............................ 75
Total monthly expenses.................. 2853


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1950
Other assets............................ 0
Total Assets............................ 1950

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,958
Expenses (including HP & secured debts). 2,853
Available for debt repayments........... 105
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 105

Personal Balance Sheet Summary
Total assets (things you own)........... 1,950
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 1,950

Notes on this

1. In as far as this goes I see a surplus of 105 however 80 of this is from CB which I gather is not in the calculation also. Is this correct?
2. I have put down 2 children as the youngest will be with me for a small portion of the time too (though have only calculated costs based on me and one child) Should this be changed?
3. Rent average rent within a 3 mile radius of son's school is 1300 property is smaller than mortgaged house. Moving any close to work would put rent up and moving any further away would get me sacked for lateness, reduces cost of getting to school significantly and could get to work in time just. Also would be renting it prior to BR, and OR guidance only refers to excessive mortgages. So is more than mortgages on property but is fixed and sustainable unlike the current interest rate of .5% Thoughts?
4. Life insurance includes critical illness cover. Couldn't find guidance on this, Any ideas?
5. My job does attract a bonus but this is in no way guaranteed
6. My work is IT related so its very susceptable to market conditions

Again sorry for the very long post but any thoughts as to the above would be much appreciated

Ok only made a few small suggestions but gives you an idea of what you could put down if you needed to.;)Dx

w-inthepoo

Hi D
Thanks for that - but if he can not tell you where to live then surely making any changes to the i&e would be punitive. Looking at your comments on the SOA you have pushed up the total by £99 which on balance should be fair?

Also any thoughts on the car?

Thanks again. This is truly great board - someone here can learn more in a couple of days here then a lifetime elsewhere. Seriously it should be compulsory reading for anyone entering the work place.

Thanks
W

dreamcatcher73

w-inthepoo wrote: »

Hi D
Thanks for that - but if he can not tell you where to live then surely making any changes to the i&e would be punitive. Looking at your comments on the SOA you have pushed up the total by £99 which on balance should be fair?

Also any thoughts on the car?

Thanks again. This is truly great board - someone here can learn more in a couple of days here then a lifetime elsewhere. Seriously it should be compulsory reading for anyone entering the work place.

Thanks
W

Cars are a truly tricky situation and really depends on your OR.. If you need a car for work, you will be allowed one, whether they allow you to keep yours is a totally different issue. They may take it off you then give you some money to buy another one..they may make yours exempt or they may give you the chance to buy the car back off them for less than its value..

After having written all that, I realised I didn't look to see of the car is on HP?

Ah, no it's not, so as above..

w-inthepoo

nope not on hp. And is not 100% work related though I could drive it in and out of London everyday and spend about £1m quid on diesel, servicing, congestion charging, parking etc

dreamcatcher73

w-inthepoo wrote: »

nope not on hp. And is not 100% work related though I could drive it in and out of London everyday and spend about £1m quid on diesel, servicing, congestion charging, parking etc

Then I don't know is the simple answer! It will depend on your OR. Do you need it to take children somewhere before heading off to the train station? Do you need to drive to the train station? If you can justify needing a car for work, then you will be allowed to have one, if not, then it's fairly certain you will lose it

w-inthepoo

blind-as-a-bat wrote: »

You missed dalips point, the OR cant force you to move.......directly......but.....they can justify allowing you the required amount for renting for your needs in your area.

if you choose to rent higher, then that would have to be funded from your surplus.

(Not seen that happen, but in theory they can)

Hi BasaB

Good point, so then I should follow Dalip's advice on the needs part of the SOA, though in either way what would happen if there were no surplus or if it were a sub £99 surplus.

Thanks again
W

dreamcatcher73

w-inthepoo wrote: »

Hi BasaB

Good point, so then I should follow Dalip's advice on the needs part of the SOA, though in either way what would happen if there were no surplus or if it were a sub £99 surplus.

Thanks again
W

A £99 or less surplus means no IPA