Is bankruptcy the best option?

dav_blackpool

Hi all,

I've been up and down over the past year or so with conflicting advice and wondering what to do.

Basically, I've racked up debts of approx £8k officially, with another 3k to family - although thats aside at the mo.

I had advice from CCCS and NDL but they said I didn't have enough spare income to be eligible for a DMP and was boderline for a DRO - I was previously paying nearly £200pm in petrol just to get to and from work, but have since got a new job in my home town massively cutting down on fuel costs.

I'm looking at bankruptcy as this was one of the options suggested, but I keep thinking that is seems silly for such a small amount of debt?

The phone is constantly ringing and 2 or 3 letters a day come through threatening court action etc. so far I've had no court action and no CCJ's etc... I just feel like I'm never going to get out of this situation and BR is the best option.

Please wil you take a look at my SOA and see if its viable? I think I will get an IPA/IPO from it, but not sure of what I'm 'supposed' to spend on each section.

Thanks

David

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 952
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 952

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 240
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 18
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 5.5
Satellite/Cable TV...................... 15
Internet Services....................... 7.5
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 100
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 767


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 300

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Cap 1..........................500.......25........0
Abbey..........................500.......25........0
Talk Talk......................130.......6.5.......0
RBS............................130.......6.5.......0
Lloyds TSB.....................174.......8.7.......0
Provident......................335.......16.75.....0
HSBC...........................400.......20........0
Tiscali........................180.......9.........0
Kays...........................90........30........0
Littewoods.....................1200......50........0
T-Mobile.......................50........2.5.......0
Tesco Mobile...................150.......7.5.......0
Barclays.......................160.......8.........0
Black Horse....................1400......10........0
Welcome Finance................1500......50........62
Orange.........................850.......42.5......0
AOL............................150.......7.5.......0
Total unsecured debts..........7899......325.45....-


Monthly Budget Summary
Total monthly income.................... 952
Expenses (including HP & secured debts). 767
Available for debt repayments........... 185
Monthly UNsecured debt repayments....... 325.45
Amount short for making debt repayments. -140.45

Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,899
Net Assets.............................. -7,599

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

ps: the minimum monthly payments are 5% of what I owe, as most are heavily in arreas and I don't actually pay anything at the moment.

THe only ones I pay are Cabot as its nearly clear and Welcome Finance as they always come to my house, call work 5 times a day when I don't pay .

Thanks x

tigerfeet2006

Please can you redo your SoA with your OH contribution to the joint household bolls and the full amount of the household bills not just your half.

Hippocampus

I's put Cabot to the bottom of the list. I'd even consider whether or not to ask them to prove you owe them anything at all. I know you say you've nearly paid it off, but your money would be better off elsewhere.

As for Welcome, I wonder if you realise how serious missing any payments to them affects your balance. What with them ramping up the interest, and charging you a fortune every time they phone, and call at the house. Personally, I would challenge all of those unfair charges. Mind you, Welcome are is serious trouble. Their future is far from certain.

Concentrate on the debts that matter.