Can I have your comments please?

MyCashTimeMMT

We are thinking about whether we should go BR (due to a £14k reduction in wages) on our unsecured debt in the hope we could keep our house which we are pretty confident is in negative equity although we have not had it valued but to have any equity it must be worth more than we paid for it in 2005 which I just don't think it will be.

Looking at the SOA it looks as though we have £216 towards cc bills which I am surprised at to be honest because it doesn't feel like that! I have forgotten the student loan of £54 a month, probably because I know it can't be included in BR. Then there is a pension payment of £41 and a couple of child trust funds at £10 each blah blah blah.

I have spoken to our mortgage lender and mentioned the possibility of BR and they said as long as we keep them informed at all stages and keep paying the mortgage they wouldn't have a problem with it. Anyone had any experience of going BR but keeping their house? I am going to see them next week to discuss payment options.

The SOA is based on our bills now, I know an OR won't want internet included etc etc but I just wanted to show our situation at the moment.

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 940
Partners monthly income after tax.... 1300
Benefits................................ 162
Other income............................ 0
Total monthly income.................... 2402
Monthly Expense Details
Mortgage................................ 841
Secured/HP loan repayments.............. 188
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 27
Gas..................................... 84
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 10
Mobile phone............................ 36
TV Licence.............................. 11
Satellite/Cable TV...................... 17
Internet Services....................... 7
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 114
Other insurance......................... 36
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 10
Emergency fund.......................... 10
Total monthly expenses.................. 2186

Assets
Cash.................................... 0
House value (Gross)..................... 138000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 139500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 123000...(841)......5.98
Secured Debt.................. 20000....(188)......7.7
Total secured & HP debts...... 143000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................4280......50........16.6
Barclaycard....................2527......50........0
Tesco CC.......................1801......54........16.8
Abbey..........................2987......65........0
Egg............................2812......60........0
Halifax........................1969......20........0
Next...........................293.......30........26.49
Mint...........................1326......30........18
Total unsecured debts..........17995.....359.......-

Monthly Budget Summary
Total monthly income.................... 2,402
Expenses (including HP & secured debts). 2,186
Available for debt repayments........... 216
Monthly UNsecured debt repayments....... 359
Amount short for making debt repayments. -143
Personal Balance Sheet Summary
Total assets (things you own)........... 139,500
Total HP & Secured debt................. -143,000
Total Unsecured debt.................... -17,995
Net Assets.............................. -21,495

Thanks for reading

So_Sad_Angel

Hi MMT

Just wondering if the groceries should be higher.....4 occupants would surely need more that 300....maybe someone will clarify this...say 400?. Sadly I an not too great on soa`s but make sure you include everything....you can take it away but difficult to add on later.

Hope that helps & good luck,

Angiex

gardenerswife

We went bankrupt in March - had house valued for quick sale and gave us 5k equity. A very kind family member has bought that back for us - mortgage with NR - we had a together mortgage so mortgage and unsecured loan. Once we went bankrupt they wiped off the unsecured part and have just sent us a statement showing this. We have continued to pay our mortgage without any problems from them- however we aren't on a fixed plan - but at moment with interest rates so low its manageble. Know there have been others on here who have kept house too.
For SOA think you are allowed £60 for telephone and mobile ( put them together)haircuts £10 per adult, £5 per child, your not likely to get anything for entertainment, between £50-80 for holiday however, and definately more for food. Hope that helps

nervousmother

MyCashTimeMMT wrote: »

We are thinking about whether we should go BR (due to a £14k reduction in wages) on our unsecured debt in the hope we could keep our house which we are pretty confident is in negative equity although we have not had it valued but to have any equity it must be worth more than we paid for it in 2005 which I just don't think it will be.

Looking at the SOA it looks as though we have £216 towards cc bills which I am surprised at to be honest because it doesn't feel like that! I have forgotten the student loan of £54 a month, probably because I know it can't be included in BR. Then there is a pension payment of £41 and a couple of child trust funds at £10 each blah blah blah.

I have spoken to our mortgage lender and mentioned the possibility of BR and they said as long as we keep them informed at all stages and keep paying the mortgage they wouldn't have a problem with it. Anyone had any experience of going BR but keeping their house? I am going to see them next week to discuss payment options.

The SOA is based on our bills now, I know an OR won't want internet included etc etc but I just wanted to show our situation at the moment.

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 940
Partners monthly income after tax.... 1300
Benefits................................ 162
Other income............................ 0
Total monthly income.................... 2402
Monthly Expense Details
Mortgage................................ 841
Secured/HP loan repayments.............. 188 will have to explain
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 27 50
Gas..................................... 84
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 10
Mobile phone............................ 36
TV Licence.............................. 11
Satellite/Cable TV...................... 17 not allowed
Internet Services....................... 7 allowed if needed for school
Groceries etc. ......................... 300 400
Clothing................................ 20 120
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 10
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 114 be aware the or will have interest in this
Other insurance......................... 36 what is this?
Presents (birthday, christmas etc)...... 10 not allowed in br
Haircuts................................ 10 30 for 2 adults 2 kids
Entertainment........................... 10 not allowed in br
Holiday................................. 10
Emergency fund.......................... 10
Total monthly expenses.................. 2186

Assets
Cash.................................... 0
House value (Gross)..................... 138000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 139500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 123000...(841)......5.98
Secured Debt.................. 20000....(188)......7.7
Total secured & HP debts...... 143000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................4280......50........16.6
Barclaycard....................2527......50........0
Tesco CC.......................1801......54........16.8
Abbey..........................2987......65........0
Egg............................2812......60........0
Halifax........................1969......20........0
Next...........................293.......30........26.49
Mint...........................1326......30........18
Total unsecured debts..........17995.....359.......-

Monthly Budget Summary
Total monthly income.................... 2,402
Expenses (including HP & secured debts). 2,186
Available for debt repayments........... 216
Monthly UNsecured debt repayments....... 359
Amount short for making debt repayments. -143
Personal Balance Sheet Summary
Total assets (things you own)........... 139,500
Total HP & Secured debt................. -143,000
Total Unsecured debt.................... -17,995
Net Assets.............................. -21,495

Thanks for reading

Iv added a few and gave some pointers...

tigerfeet2006

I would put up to £550/600 groceries. Activities for children £5 per child per week. School dinners £2 per day primary, £3 secondary. Holiday £80. Other than that as NM has said.

fiveyearplan

I'd put phone £60 and take out satellite, mobile and internet. Groceries £600 and add in what TF and NM have suggested.

MyCashTimeMMT

Thanks for the comments.

NM has put 'will have to explain' next to the £188 secured loan. Its not HP but a secured loan - consolidation of debt which is no surprise I guess!

I note all the comments about missing some things out and making others higher.

Does it look like a SOA of someone who should go BR? A difficult question I know.

We either bumble along, make creditors offers although with seven of them our lives will be stressful to say the least even if they are not supposed to call you and hassle you. BR is the other option .......

I guess there will be a point when I throw my hands in the air and I just know we have to do it. Its been on the cards since March but its all catching up with us now and I'm finding we have so little left and my Mum is bailing me out which is unfair.

Anyway, looks like we may have a little sun today so I should get myself and the kids out for some fresh air...

Cheers