a friend in need (substantial debt)

Merry_Gentry

julzdyer wrote: »

ok, i have had a chat with the young lad and the good news is that he has already made contact with CCCS.

with the assistance of all others, i have promised to help him sort it all out (i am good friends with his father and also i am his accountant!)

anyway, i have done his SOA

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0 - does he pay nothing towards the household bills??
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60 - way too high!
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20 - unless required for work purposes, not allowed - would need to come out of his surplus
Groceries etc. ......................... 70
Clothing................................ 30
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 60
Car maintenance (including MOT)......... 30
Car parking............................. 20
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................................ 20 - I believe the allowance is £10 per person
Entertainment........................... 150 - not a chance!
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 875

Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
northern rock..................12069.....281.......0
lloyds tsb account.............1190......60........0
lloyds tsb creditcard..........3394......102.......0
accountant.....................2000......0.........0
TAX (PAYE).....................1800......0.........0
VAT ...........................5000......0.........0
credit solutions...............296.......15........0
british gas....................1151......68........0
severn trent...................392.......20........0
lloyds loan....................16293.....357.......0
Total unsecured debts..........43585.....903.......-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 875
Available for debt repayments........... 575
Monthly UNsecured debt repayments....... 903
Amount short for making debt repayments. -328
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -43,585
Net Assets.............................. -41,585
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

can you please help where necessary

finally, he is due a tax refund on CIS tax suffered of c 3k. can he receive this and pay off debts (me, dad family etc) and then go BR?

will there be any comebacks if he does this?
It would be classed as preferential treatment - the OR could reverse the transactions. He might also find himself under a BRO for up to 15 years.

thanks all

julian

He has quite a large surplus on which he would need to pay an IPA.

What did CCS recommend as possibly a DMP might be a better idea?

Merry_Gentry

Also, is his car insurance really £720 per year? :eek:

tigerfeet2006

julzdyer wrote: »

ok, i have had a chat with the young lad and the good news is that he has already made contact with CCCS.

with the assistance of all others, i have promised to help him sort it all out (i am good friends with his father and also i am his accountant!)

anyway, i have done his SOA

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60 £20/30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20 will have to come from surplus income, not allowed on SoA
Groceries etc. ......................... 70 £180
Clothing................................ 30 £40
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 60 be prepared to prove this as it is high :eek:
Car maintenance (including MOT)......... 30
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 £15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20 £10
Entertainment........................... 150 £0 not allowed
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 875

Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
northern rock..................12069.....281.......0
lloyds tsb account.............1190......60........0
lloyds tsb creditcard..........3394......102.......0
accountant.....................2000......0.........0
TAX (PAYE).....................1800......0.........0
VAT ...........................5000......0.........0
credit solutions...............296.......15........0
british gas....................1151......68........0
severn trent...................392.......20........0
lloyds loan....................16293.....357.......0
Total unsecured debts..........43585.....903.......-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 875
Available for debt repayments........... 575
Monthly UNsecured debt repayments....... 903
Amount short for making debt repayments. -328
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -43,585
Net Assets.............................. -41,585
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

can you please help where necessary

finally, he is due a tax refund on CIS tax suffered of c 3k. can he receive this and pay off debts (me, dad family etc) and then go BR?

will there be any comebacks if he does this?

thanks all

julian

Have made some comments. Does he not make any contributions to the bills? When this contract ends, what are the likely hood of another job? Will he be going on to benefits?

julzdyer

thanks all

he currently lives with parents, that is the rent charge, so should i put amount in for bills as i would imagine he doesnt contribute any more

i will take your comments on board regarding SOA and prepare another copy

i will double check his car insurance, it does seem high

julzdyer

will there be any comebacks if he does this?
It would be classed as preferential treatment - the OR could reverse the transactions. He might also find himself under a BRO for up to 15 years.

what is a BRO?

antarctica

bankruptcy restriction order

julzdyer

He has quite a large surplus on which he would need to pay an IPA.

What did CCS recommend as possibly a DMP might be a better idea?

is it worth reducing the surplus then if possible? CCCS were looking at a DMP, however wouldnt this take an age to pay off and there is no guarantee of work after this 3 month contract

sould i amend the SOA to show payment plan for VAT man?

julzdyer

antarctica wrote: »

bankruptcy restriction order

i assume that isnt good news then?

Merry_Gentry

julzdyer wrote: »

i assume that isnt good news then?

It basically means that all of the restrictions imposed by bankruptcy last for the length of the BRO - so up to 15 years.

tigerfeet2006

Bankruptcy Restriction Undertakings / Orders.

• Bankruptcy Restrictions Orders (IS)
• FAQ - Bankruptcy Restriction Orders / Undertaking ( BRO/BRU ) (IS)