the harsh reality that is my SOA

dollparts

This is my first crack at my SOA. I have to firm up a few of the creditor figures but the variance will not be too dramatic. I'm having palpitations just looking at it in black and white. Any thoughts on what I could do to it would be greatly appreciated.

Have added notes against a few of the entries to clarify anything that may appear unusually high etc.

Thanks in advance.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 886.41
Partners monthly income after tax....... 0
Benefits................................ 689.16
Other income............................ 0
Total monthly income.................... 1575.57
Monthly Expense Details
Mortgage................................ 867
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 75.9
Council tax............................. 97
Electricity............................. 65
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 11.95
Satellite/Cable TV...................... 21.5
Internet Services....................... 15
Groceries etc. ......................... 303 DAUGHTER ON SPECIALIST DIET DUE TO MEDICAL CONDITIONS
Clothing................................ 15
Petrol/diesel........................... 80
Road tax................................ 18
Car Insurance........................... 122.65 BUSINESS CLASS FOR SELF EMPLOYED HIKED UP FROM LAST YEAR DUE TO LAST CAR BEING STOLEN
Car maintenance (including MOT)......... 21
Car parking............................. 6
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 57.5 SCHOOL MEALS AND HOSPITAL VISITS
Medical (prescriptions, dentist etc).... 12
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 46.39 AGAIN HIKED UP DUE TO CLAIM FOR BREAK IN
Life assurance ......................... 13.64
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 30
Total monthly expenses.................. 1980.53

Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0 CAR ALSO FOR BUSINESS USE
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 148500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 170000...(867)......6
Total secured & HP debts...... 170000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................3843......76........18
credit card....................1735......106.......19
catalogue......................580.......50........29.9
catalogue......................200.......5.........29.8
catalogue......................205.......12........29.9
catalogue......................983.......40........29.9
catalogue......................3132......180.......0
Total unsecured debts..........10678.....469.......-

Monthly Budget Summary
Total monthly income.................... 1,575.57
Expenses (including HP & secured debts). 1,980.53
Available for debt repayments........... -404.96
Monthly UNsecured debt repayments....... 469
Amount short for making debt repayments. -873.96
Personal Balance Sheet Summary
Total assets (things you own)........... 148,500
Total HP & Secured debt................. -170,000
Total Unsecured debt.................... -10,678
Net Assets.............................. -32,178

Bob_the_Saver

£35 per month on a mobile? Satellite/Cable TV £21.50, maybe these are good places to start, how soon can you end these?

dollparts

Bob_the_Saver wrote: »

£35 per month on a mobile? Satellite/Cable TV £21.50, maybe these are good places to start, how soon can you end these?

Im locked into my mobile contract for 18m as of beginning of this month. My reasoning was to change from bt to sky and only pay £5 for landline as I make a lot of calls when I'm out during the day

Am also going to look into reducing sky package. Am closing our account as it is in exhb name so thought I could squeeze a cheaper deal out of them with broadband thrown in as well which will reduce the £15 I am currently paying. (by opening account as new customer)

debtinfo

If you want to break contracts when you go bankrupt you can do so as the shortfall will fall into the bankruptcy

tigerfeet2006

Dollparts are you self employed?

fiveyearplan

dollparts wrote: »

This is my first crack at my SOA. I have to firm up a few of the creditor figures but the variance will not be too dramatic. I'm having palpitations just looking at it in black and white. Any thoughts on what I could do to it would be greatly appreciated.

Have added notes against a few of the entries to clarify anything that may appear unusually high etc.

Thanks in advance.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 886.41
Partners monthly income after tax....... 0
Benefits................................ 689.16 List CHB separately.
Other income............................ 0
Total monthly income.................... 1575.57
Monthly Expense Details
Mortgage................................ 867 did you realise this totals your whole monthly income before benefits?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 75.9
Council tax............................. 97
Electricity............................. 65
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 11.95 12
Satellite/Cable TV...................... 21.5 will have to come out of surplus
Internet Services....................... 15
Groceries etc. ......................... 303 DAUGHTER ON SPECIALIST DIET DUE TO MEDICAL CONDITIONS This amount is fine - in fact could be upped to £400
Clothing................................ 15
Petrol/diesel........................... 80
Road tax................................ 18
Car Insurance........................... 122.65 BUSINESS CLASS FOR SELF EMPLOYED HIKED UP FROM LAST YEAR DUE TO LAST CAR BEING STOLEN
Car maintenance (including MOT)......... 21
Car parking............................. 6
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 57.5 SCHOOL MEALS AND HOSPITAL VISITS
Medical (prescriptions, dentist etc).... 12
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 46.39 AGAIN HIKED UP DUE TO CLAIM FOR BREAK IN
Life assurance ......................... 13.64 This may be of interest to the OR
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12 not allowed but leave in and see
Haircuts................................ 10 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 30 not allowed but leave in and see
Total monthly expenses.................. 1980.53

Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0 CAR ALSO FOR BUSINESS USE
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 148500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 170000...(867)......6
Total secured & HP debts...... 170000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................3843......76........18
credit card....................1735......106.......19
catalogue......................580.......50........29.9
catalogue......................200.......5.........29.8
catalogue......................205.......12........29.9
catalogue......................983.......40........29.9
catalogue......................3132......180.......0
Total unsecured debts..........10678.....469.......-

Monthly Budget Summary
Total monthly income.................... 1,575.57
Expenses (including HP & secured debts). 1,980.53
Available for debt repayments........... -404.96
Monthly UNsecured debt repayments....... 469
Amount short for making debt repayments. -873.96
Personal Balance Sheet Summary
Total assets (things you own)........... 148,500
Total HP & Secured debt................. -170,000
Total Unsecured debt.................... -10,678
Net Assets.............................. -32,178

Do you have any equity in your house? What are rents like in your area? It seems you are paying over 100% of your salary/wages to your mortgage and management charge, if you rented you would probably get some housing benefit.

peachyprice

I think before you go BR you're going to have to address the £400 shortfall in your I&E. What will you do once BR and have no access to credit to make up the difference?

It is possible that you could be refused BR on the grounds that it wouldn't help you because you'd still be in a negative situation, with no partner to help with the additional costs.

dollparts

Thanks for your comments and replies. I think I should explain a little more to clear things up a bit which may make advising me less headache for you guys. (and I am very grateful )

Firstly, the mortgage is in joint names with soon to be exhb. He hasn't worked since April which is why my debts have spiralled so quickly.

I am self employed. My income has dipped approx £650 per month since the end of May which has obviously made a massive difference. Am hoping to increase this in the very near future.

The life assurance is only for the conditions of the mortgage. Will surrender policy after repo/BR.

Property is on the market for 145K.

Exhb is not paying in anything towards any joint liabilities-mortgage, service charge, ao any maintenance. We have agreed on a maintenance figure of £92.50 per month as part of divorce settlement but this can only begin when he is back in work. Apparently I can't touch his jsa because he has dd for two nights per week.

Have been advised (benefits calculator) that I will be entitled to LHA but not until I have a TA.

Hope this makes sense and thanks again.

Tinytim

Hi Dollparts,

Could you clarify the situation with the car insurance please. If you are self-employed, your net income should be your net profit i.e. your earnings minus your business expenses. Therefore, some of the car insurance (and other expenses) should have already been deducted, as they are business expenses.

In making savings, you might want to look at the school dinners side of things and swap them for sandwiches, especially as your little un need a special diet

dollparts

Tinytim wrote: »

Hi Dollparts,

Could you clarify the situation with the car insurance please. If you are self-employed, your net income should be your net profit i.e. your earnings minus your business expenses. Therefore, some of the car insurance (and other expenses) should have already been deducted, as they are business expenses.

In making savings, you might want to look at the school dinners side of things and swap them for sandwiches, especially as your little un need a special diet

Tim, yes, that is an error I need to fix. I have calculated all other business expenses and deducted them to reach net income but have left that one out. I will get on to insurance company and ask them what % of premium is related to business use, or failing that ask them to quote me for sdp and knock the difference off my net figure. would that be ok?

Re school meals, I will consider the packed lunch idea but tbh her diet is so limited I doubt she would last a fortnight without wanting school meals. I fought so hard to get the LEA to cater to her needs, I will look a fool for then not taking up the provision. But hey, I'd rather look silly to them than have to justify it to an OR.

dollparts

peachyprice wrote: »

I think before you go BR you're going to have to address the £400 shortfall in your I&E. What will you do once BR and have no access to credit to make up the difference?

It is possible that you could be refused BR on the grounds that it wouldn't help you because you'd still be in a negative situation, with no partner to help with the additional costs.

Peachy, sorry for the hand-holding but could you make any suggestions for reducing my outgoings at all?

Plus, I have another query. Just supposing my home is sold prior to going BR, this would in effect make a difference to outgoings as I will only owe the shortfall as opposed to the whole amount outstanding.

Does anyone know what type of rates/lengths of term banks impose on customers with shortfalls? It may be useful as I will need to adjust soa if a sale goes through and I will owe less ergo less money out each month. This would improve the I/E and better my chances of BR being successful?