Worse case scenario...

Sammy3008

And I'm so sorry for posting again, just things keep popping into my head, and I know I must ask you all.

As we have now 'pretty' much decided to move into rental accomodation, and stop paying the mortgage etc (hopefully this will happen asap, but got to wait until at least Friday as OH just needs to clarify employment contract with his union rep and then got to find the new property ) what happens if the Judge doesn't believe my OH is worthy of BR?
Am just going to do another SOA (done below) and then hopefully we can get definate idea's from everyone.

I know I'm being silly, as I know my OH is in 'alot' of debt, but I think it just plays on my mind a little, there's always 'what if's' :rolleyes:

This SOA will differ slightly from the real one, as we will no longer be paying the mortgage, will be rent instead, and C/T, Elec, Gas, Water, phone, tv licence may be higher/lower and we'll have to pay no Building insurance just contents, so I guess a difficult one to answer and I guess he'll owe more now, because of charges added on etc, but this is how it stands now: (have excluded the DLA for son at the moment)

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 202 Child Benefit and Tax Credits
Other income............................ 0
Total monthly income.................... 1952
Monthly Expense Details
Mortgage................................ 495 This won't exist
Secured/HP loan repayments.............. 0
Rent.................................... 0 Likely to be between £625 & £650 per mth
Management charge (leasehold property).. 0
Council tax............................. 86 Possibly higher, dependant on area currently believe where in lower band here
Electricity............................. 35 Probably higher, as hopefully will be in a bigger house
Gas..................................... 58 Same as Electric
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 35
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 30 I know this comes out of surplus and probably won't have anyway
Internet Services....................... 0 Comes under Telephone at min
Groceries etc. ......................... 500 Is this about right for family of 4
Clothing................................ 20
Petrol/diesel........................... 120 This may possibly lower, as nearer OH work
Road tax................................ 14
Car Insurance........................... 35
Car maintenance (including MOT)......... 10
Car parking............................. 10
Other travel............................ 10 Bus fare for me & daughter
Childcare/nursery....................... 0
Other child related expenses............ 34 Daughter dinner money
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 0
Buildings insurance..................... 10 Won't be paying this when moved
Contents insurance...................... 10 Maybe slightly higher
Life assurance ......................... 0 Not got this at moment
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 18
Entertainment........................... 10
Holiday................................. 25
Emergency fund.......................... 5
DMP..................................... 150 Won't be running this
Total monthly expenses.................. 1808

Assets
Cash.................................... 500 Rough guess at what OH could lose
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 79000

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 76029....(495)......0
Total secured & HP debts...... 76029 This will no doubt be higher, as when OH cancel's mortgage will incur charges
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card.................... 3500. Minimum payment varies
Loan........................... 16000.....202......6.5%
Loan........................... 10000.....109.01......7.8%
Loan........................... 24000......155.pence.....
Loan........................... 9500......198.00
Loan........................... 14000
Total unsecured debts..........77000

Monthly Budget Summary
Total monthly income.................... 1,952
Expenses (including HP & secured debts). 1,808
Available for debt repayments........... 144
Monthly UNsecured debt repayments....... 202
Amount short for making debt repayments. -58
Personal Balance Sheet Summary
Total assets (things you own)........... 79,000
Total HP & Secured debt................. -76,029
Total Unsecured debt.................... -77,000
Net Assets.............................. -74,029

tigerfeet2006

You are insolvent. Your outgoings are higher than your incomings. A judge will see this and will grant the petition.

Don#t get Life Insurance until discharged or the OR will take an interest in it.

Sammy3008

tigerfeet2006 wrote: »

You are insolvent. Your outgoings are higher than your incomings. A judge will see this and will grant the petition.

Don#t get Life Insurance until discharged or the OR will take an interest in it.

Thank you 'SO' much Tigerfeet.
I was thinking is it me, am I imagining it, but you've put an end to that.
Like I say I haven't included our son's DLA on that, will my OH have to on the real one? As its paid to me, and we'll have seperate accounts by then.

Thank you also for the advice on the Life Insurance thing. Once my OH has been discharged, within 12 mths, could we set a Life Insurance up then? Can the OR still touch OH after he has been discharged?

Also on that SOA I did, I added the DMP that my OH is currently paying into, and he'll I imagine cancel that soon, is that the right thing to do?

One of the loans he's also got, was taken out last November, on a buy now pay in 12 mths time, is that still ok to be added onto BR?

tigerfeet2006

Sammy3008 wrote: »

Thank you 'SO' much Tigerfeet.
I was thinking is it me, am I imagining it, but you've put an end to that.
Like I say I haven't included our son's DLA on that, will my OH have to on the real one? As its paid to me, and we'll have seperate accounts by then. Bear with me as I want to find something on this. Edited to say can't find what I was looking for. Will try and find it tomorrow.

Thank you also for the advice on the Life Insurance thing. Once my OH has been discharged, within 12 mths, could we set a Life Insurance up then? Can the OR still touch OH after he has been discharged? Yep, it will be fine to take it out after AD and no the OR can't touch it after AD.

Also on that SOA I did, I added the DMP that my OH is currently paying into, and he'll I imagine cancel that soon, is that the right thing to do? If he is going BR then stop paying this asap and save it towards the BR fees. Three and half months and you will have the dosh (£510) Also if you are going to be moving into rented then stop paying the mortgage and save the money for the deposit and rent and moving costs for the rented place.

One of the loans he's also got, was taken out last November, on a buy now pay in 12 mths time, is that still ok to be added onto BR?

Yes it is. It will be added even if he doesn't list it. It is a debt and he can't carry on paying as he will be breaking the terms of his BR agreement.

Sammy3008

Again thank you!!

Did forget to add on to SOA, hubby will also have a shortfall to add on to the SOA, when who-ever trys to sell it, and also Estate agent fees I was told we could add on aswell....

However this is where I'm still hitting a stumbling block, as I can't find the Contract that Frank Innes gave us, so not sure what the rule is here.

tigerfeet2006

Everything to do with the house can go into the BR if it is in your DH's name. If anything is in your name or joint it will fall to you to pay.

Sammy3008

tigerfeet2006 wrote: »

Everything to do with the house can go into the BR if it is in your DH's name. If anything is in your name or joint it will fall to you to pay.

The only thing that's in both names is an overdraft facility that was on our old account with HSBC.

But what I'm going to do, is contact them, when the time comes, and set up a payment facility to them from my account.

Sammy3008

Just been onto DH mortgage/unsecured loan with NR.

Don't know how to change SOA on here now, so will add it here:

DH had to go onto Interest only beginning of this year, as struggling to pay debts etc, so his Mortgage payment up until March 2010 is £403.60
The Unsecured Loan he pays £155.22 so altogether until next March he's paying £558.82.
Come next March it will go back upto £650.74.

Outstanding balance for Mortgage and Loan with NR is £98474.47 as of today.

Will the OR go on what DH has been paying on the mortgage (interest only) or the repayment what he'll be paying come next March, then plus any arrears etc that will be added on, when cancel the DD.

Sorry if I've confused anyone, and happy to do another SOA if needs be.

**Edit** Thinking about it, the above doesn't really make much difference does it? As we won't be living here, and possibly DH will have incurred 'lots' of charges by the time BR

Sammy3008

How long to give it, from changing Bank account (to the Co-Op one) and going BR?

Sammy3008

A couple of other things.

On my DH SOA, I have included things like House Insurance, buildings insurance, car insurance monthly, but we've always tried to pay these annually, so will these still count?

Also added things like Hair-cuts etc, but monthly is not always the case, should I still include this?

philnicandamy

Sammy3008 wrote: »

A couple of other things.

On my DH SOA, I have included things like House Insurance, buildings insurance, car insurance monthly, but we've always tried to pay these annually, so will these still count? Yes

Also added things like Hair-cuts etc, but monthly is not always the case, should I still include this? Yes

Just a thought