Can I declare Bankruptcy?

NoddingDog

Dear All Those In The Know,

My debt stands at £26,381.21

In the last financial year I earned £19000 after tax.

My Monthly outgoings including debt repayment stands at £2160 per month.

£847.00 of that is debt repayment with interest.

Debt includes four credit cards and two loans.

I rent my home and have no other major assets apart from my car, which is a ten year old Mondeo.

I have no savings of any kind.

My question is, am I likely to be approved for Bankruptcy?

Thanks in anticipation

NoddingDog

fiveyearplan

Hi and welcome. In order to answer your question you would need to fill in an SOA. Here is the link

http://www.makesenseofcards.com/soacalc.html

When you get to the end format it for MSE and then post it on here for advice.

NoddingDog

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 160
Total monthly income.................... 2360

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 70
Council tax............................. 86
Electricity............................. 30
Gas..................................... 40
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 22
Mobile phone............................ 100
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 34
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 240
Road tax................................ 20
Car Insurance........................... 29.93
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1506.93


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................6580.44...191.7.....0
Loan...........................9988.2....221.9.....0
Credit Card....................1528.75...39........0
Credit Card....................2159.55...32.2......0
Credit Card....................4446.32...130.......0
Credit Card....................1677.95...37.5......0
Total unsecured debts..........26381.21..652.3.....-


Monthly Budget Summary
Total monthly income.................... 2,360
Expenses (including HP & secured debts). 1,506.93
Available for debt repayments........... 853.07
Monthly UNsecured debt repayments....... 652.3
Amount left after debt repayments....... 200.77

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,381.21
Net Assets.............................. -25,881.21

The following Outgoings Have to be added on - £72.00 + £6.75 + 17.45 + £12.95 = £108.85

peachyprice

Well, looking at your SoA, you're not insolvent, you have enough to meet your living costs, debt repayments, and still have £200 over per month. If you're not insolvent you cannot go bankrupt.

With careful budgeting, like hitting the £100 mobile phone on the head you should be able to manage on a DMP.

If you pop over to the DFW board there will be lots of advice to help you, but TBH in your situation bankruptcy seems far too extreme and unnecessary.

NoddingDog

Thanks Peachy,

Did you notice that at the end of the SOA I added another £108.00 in additional outgoings?

Which reduces my surplus to £92.00 per month.

What do you reckon? and thanks for looking at my case.

All the best
NoddingDog

peachyprice

You're still not insolvent with £92 left after your outgoings.

NoddingDog

Ok, but £2200 per month is an average salary, as I am part employed and part self employed. There is a great shortfall during certain months. It worked out at £6000 for the last tax year.

fiveyearplan

What worked out at £6,000 last tax year, your earnings or the shortfall? If you are self employed then you take an average of the last 3-6 months earnings. See if that changes anything.

fiveyearplan

NoddingDog wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 160 what is this income?
Total monthly income.................... 2360

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 70
Council tax............................. 86 have you looked into single person's discount?
Electricity............................. 30
Gas..................................... 40
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 22
Mobile phone............................ 100 Can you reduce this?
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 34 Can you get a phone/internet package? I pay £25 combined with TalkTalk
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 240
Road tax................................ 20
Car Insurance........................... 29.93
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1506.93


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................6580.44...191.7.....0
Loan...........................9988.2....221.9.....0
Credit Card....................1528.75...39........0
Credit Card....................2159.55...32.2......0
Credit Card....................4446.32...130.......0
Credit Card....................1677.95...37.5......0
Total unsecured debts..........26381.21..652.3.....-


Monthly Budget Summary
Total monthly income.................... 2,360
Expenses (including HP & secured debts). 1,506.93
Available for debt repayments........... 853.07
Monthly UNsecured debt repayments....... 652.3
Amount left after debt repayments....... 200.77

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,381.21
Net Assets.............................. -25,881.21

The following Outgoings Have to be added on - £72.00 + £6.75 + 17.45 + £12.95 = £108.85

I've looked at this SOA not as a BR one but as a DFW one. What are the other outgoings you have listed below? Is it possible to offer F&Fs on any of your cc's?

As Peachy says, you are not insolvent if you can meet your expenditure and minimum debt repayments. Have a look at the snowball calculator and see how quickly your debt could be repaid if you paid extra per month and made some savings elsewhere. I know it isn't easy and probably not the answers you were looking for.

philnicandamy

But....what are these outgoing for you've added at the end?

£72/£6.75/£17.45/£12.95