A few questions pre bankruptcy

desperatetobedebtfree

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1162
Other income............................ 0
Total monthly income.................... 1162
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 40
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 3
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 0
Total monthly expenses.................. 1145

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 700

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,162
Expenses (including HP & secured debts). 1,145
Available for debt repayments........... 17
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 17
Personal Balance Sheet Summary
Total assets (things you own)........... 700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 700
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

tigerfeet2006

desperatetobedebtfree wrote: »

Thanks tigerfeet..no idea what you mean about buying interest back for policy but like the sound of it anyway! If you have an insurance policy that pays out money then the OR will take an interest and if a few years down the line you claim then the OR can take the money. So you can buy the interest for £50 so this won't happen. But ask the debt charities if this is such a policy that the OR will take an interest in.

Holidays...i really didnt think i would be allowed to budget for that! Yep!!

Shall i now include an amount for travel? Eg taxi/bus to supermarket? Yep! sorry my brain is closing down now, think I need my bed, it's been a long day.

The car could be brought by a third party easily but how likely is it that he will allow? Ideally I need it to drop son at childcare and then onto college..dont even think it would be doable time wise without it but am sure the OR wont care about that will he!

Useually no the OR won't care about that. He will be quite happy for someone to make an offer on the car though as it will make his job easier. Then all you do is make sure you have enough play in your SoA to cover it's running.

Put £20 down for child activities and the rest as travel.

desperatetobedebtfree

Thanks tigerfeet and everyone else that has helped me. I have more questions but am thinking sleep be needed first! Hoping to not be lying awake worrying as can see the end is in sight!

tigerfeet2006

Sweet dreams and sleep well.

You can't change the past, so there is no point worrying about. But you can change the future, to a worry free, debt free one.

Merry_Gentry

And we'll be in here in the morning Nite nite

salamjanab

Hi, if I stop paying for mortgage (and my house gets repossessed) - will it show me as bankrupt?
What are the disadvantages and consequences if I default on mortgage and my house gets repossessed (other than losing my house)?
What are the disadvantages and consequences if I become bankrupt? Anything I should consider before stopping mortgage payments?

Merry_Gentry

salamjanab wrote: »

Hi, if I stop paying for mortgage (and my house gets repossessed) - will it show me as bankrupt?
What are the disadvantages and consequences if I default on mortgage and my house gets repossessed (other than losing my house)?
What are the disadvantages and consequences if I become bankrupt? Anything I should consider before stopping mortgage payments?

Hi Salamjanab

You really need to start a new thread in order to get answers to your question.

For information, please read the stickies at the front of the forum - this will give you plenty of information regarding the consequences of bankruptcy.

peachyprice

desperatetobedebtfree wrote: »

The car could be brought by a third party easily but how likely is it that he will allow? Ideally I need it to drop son at childcare and then onto college..dont even think it would be doable time wise without it but am sure the OR wont care about that will he!

I think if your need the car to get to college the OR usually allows it, I'm sure we've had someone before in your situation, with a child to get to care and then on to college, and they were allowed to keep the car.

So i'd leave it on your SoA and see what happens, as you say you have someone who could buy it off the OR if necessary, which wouldn't be the whole £675.

786

Why on earth would you consider going bankrupt for £10K?

If you must go down this route, why not get a DRO (debt relief order) - debts up to £15k written off.

Alternatively, if you never want to get into debt again, don't pay and do not admit owing the debt for 6 years and it will be barred by the Statute of Limitations.

If you have no money or assets, there is nothing they can do - except threaten you with not allowing you take on yet more usurous debt.

fiveyearplan

786 wrote: »

Why on earth would you consider going bankrupt for £10K?



Alternatively, if you never want to get into debt again, don't pay and do not admit owing the debt for 6 years and it will be barred by the Statute of Limitations.

If you have no money or assets, there is nothing they can do - except threaten you with not allowing you take on yet more usurous debt.

The OP isn't eligible for DRO. Some people would rather file bankruptcy and draw a line under their debt issues than live with the stress of 'hiding' from creditors for 6 years.