Can people clarify this for me?

Sammy3008

SOA Added below.

Ok, I have just spoken to the Debt Management Company we are with, went through our expenditure again with them, i.e, groceries, insurance, excluding repayments of debts, and they are saying we wouldn't be accepted to go BR, as we have enough surplus income

Will the OR take into account what our outgoings are 'without paying the debts and paying the debt management as we are currently doing, or do they take into consideration what we 'would' be paying out if we were paying our creditors?

Again thanks.

philnicandamy

They'll usually take into account what you spend without any debt repayment

Sammy3008

philnicandamy wrote: »

They'll usually take into account what you spend without any debt repayment

Well maybe BR wouldn't work for us then, as without payments being made to our creditors, and just on DH income, there is around £560 surplus.

If we were having to repay the creditors, there would be £-70 so no surplus at all, thats including benefits we get.

Looks like we're stuck in this mess then for a while, as to repay our creditors what we were paying it would be an etc £818.00 a month on top of £996.58 we currently pay out, however this excludes groceries etc

MicheH

I'm not very clued up on this but that's a big surplus I guess. Could you not try a different route. BR is major major

philnicandamy

It IS a large surplus & the OR would take a percentage of this IF you decided on bankruptcy..although I have seen people in the past go BR with similar surplus....have you had some professional advice??

this is a rough idea of what the OR would take from your surplus...and that would be for a total of 3yrs....or until your surplus ever dropped below £99 a month after living expenses



can you not post up an SOA here & we'll see if we can help?

Sammy3008

philnicandamy wrote: »

It IS a large surplus & the OR would take a percentage of this IF you decided on bankruptcy..although I have seen people in the past go BR with similar surplus....have you had some professional advice??

this is a rough idea of what the OR would take from your surplus...and that would be for a total of 3yrs....or until your surplus dropped below £99



can you not post up an SOA here & we'll see if we can help?

Just going to do another one now
Have had advice on here, and over the phone, could really do with someone to come out and sit with us to work out finances etc.

MicheH

Sammy3008 wrote: »

Well maybe BR wouldn't work for us then, as without payments being made to our creditors, and just on DH income, there is around £560 surplus.

If we were having to repay the creditors, there would be £-70 so no surplus at all, thats including benefits we get.

Am I reading correct that the £560 surplus is without adding benefits? Would your surplus be higher adding in benefits?

You would lose a high proportion of your surplus to the OR for 36 months I think

MicheH

Phil you're good at this, i'm still learning!

Sammy3008

MicheH wrote: »

Am I reading correct that the £560 surplus is without adding benefits? Would your surplus be higher adding in benefits?

You would lose a high proportion of your surplus to the OR for 36 months I think

I didn't think benefits were included?

Here's our SOA:

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 1662
Partners monthly income after tax....... 0
Benefits................................ 723 DLA for son, Child Benefit, Tax Credits.
Other income............................ 0
Total monthly income.................... 2385

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 86
Electricity............................. 35
Gas..................................... 58
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 27
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 10
Groceries etc. ......................... 450
Clothing................................ 40
Petrol/diesel........................... 130
Road tax................................ 0
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 5
Other travel............................ 9
Childcare/nursery....................... 0
Other child related expenses............ 35
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 10
Emergency fund.......................... 5
DMP..................................... 150
School Trips............................ 5
Total monthly expenses.................. 1263

Assets
Cash.................................... 1000
House value (Gross)..................... 69000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 73500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79028....(0)........0
Total secured & HP debts...... 79028.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3800......50........0
Unsecured Loan.................23800.....156.......6.49
Unsecured Loan.................13500.....202.......0
Loan...........................9500......198.......0
Loan...........................14000.....110.......0
Loan...........................10000.....102.......0
Overdraft......................2560......0.........0
Total unsecured debts..........77160.....818.......-

Monthly Budget Summary
Total monthly income.................... 2,385
Expenses (including HP & secured debts). 1,263
Available for debt repayments........... 1,122
Monthly UNsecured debt repayments....... 818
Amount left after debt repayments....... 304

Personal Balance Sheet Summary
Total assets (things you own)........... 73,500
Total HP & Secured debt................. -79,028
Total Unsecured debt.................... -77,160
Net Assets.............................. -82,688

Also forgot to add a debt on there, that we have well until our 12 weeks in October are up which is £1752.00 for estate agent, plus any shortfall we will end up with on this house.

dalip

Sammy3008 wrote: »

I didn't think benefits were included?

Here's our SOA:

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 1662
Partners monthly income after tax....... 0
Benefits................................ 723 DLA for son, Child Benefit, Tax Credits.
Other income............................ 0
Total monthly income.................... 2385

Monthly Expense Details
Mortgage................................ 0?
Secured/HP loan repayments.............. 0
Rent.................................... 0?
Management charge (leasehold property).. 0
Council tax............................. 86
Electricity............................. 35£60
Gas..................................... 58
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 27£40
Mobile phone............................ 15£20
TV Licence.............................. 12
Satellite/Cable TV...................... 30not allowed
Internet Services....................... 10would need to prove it is needed for work or it would be dissallowed
Groceries etc. ......................... 450£550-£600
Clothing................................ 40£120
Petrol/diesel........................... 130
Road tax................................ 0
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 5
Other travel............................ 9
Childcare/nursery....................... 0
Other child related expenses............ 35
Medical (prescriptions, dentist etc).... 14£20(£30 if either of you wears specs)
Pet insurance/vet bills................. 0
Buildings insurance..................... 10£20
Contents insurance...................... 10£20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20not normally allowed
Haircuts................................ 15£30(£10 per adult,£5 per child)
Entertainment........................... 10WHAT!!!!!!!:rotfl:as a bc you re not allowed this
Holiday................................. 10£50
Emergency fund.......................... 5
DMP..................................... 1500
School Trips............................ 5
Total monthly expenses.................. 1263

Assets
Cash.................................... 1000
House value (Gross)..................... 69000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 73500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79028....(0)........0
Total secured & HP debts...... 79028.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3800......50........0
Unsecured Loan.................23800.....156.......6.49
Unsecured Loan.................13500.....202.......0
Loan...........................9500......198.......0
Loan...........................14000.....110.......0
Loan...........................10000.....102.......0
Overdraft......................2560......0.........0
Total unsecured debts..........77160.....818.......-

Monthly Budget Summary
Total monthly income.................... 2,385
Expenses (including HP & secured debts). 1,263
Available for debt repayments........... 1,122
Monthly UNsecured debt repayments....... 818
Amount left after debt repayments....... 304

Personal Balance Sheet Summary
Total assets (things you own)........... 73,500
Total HP & Secured debt................. -79,028
Total Unsecured debt.................... -77,160
Net Assets.............................. -82,688

Also forgot to add a debt on there, that we have well until our 12 weeks in October are up which is £1752.00 for estate agent, plus any shortfall we will end up with on this house.

Ok i have done the allowances as if you were going bc. You are allowed £5 per chid per wk for after school activities. I have also done the alterations as if just one was going bc if both of you were togo it would be different. As in same amounts(some could even be upped) but sperated out.Dx

Sammy3008

dalip wrote: »

Ok i have done the allowances as if you were going bc. You are allowed £5 per chid per wk for after school activities. I have also done the alterations as if just one was going bc if both of you were togo it would be different. As in same amounts(some could even be upped) but sperated out.Dx

With what you have added for groceries etc, even with us not spending this amount, could we still put thats what we spend? Would the OR not question DH about it?

So could we officially go BR, with what we'd have going out/coming in?
Obviously the benefits we get, have made it look a lot, but not sure whether you include this when filling in the form or not?

I will re-do my SOA shortly, with the figures you have used, and see what that comes out at. Thanks.