Looks like we will have to go bankrut - so I have a few very basic questions!

In_a_Mess_3

So, have been to the CAB and looks like the only realistic option to us is to go bankrupt.

So, my questions are as I say very basic, I understand the fairly complicated bits but it's what we will/will not be able to keep, and the justifying the debts bits that bothers me.

Firstly, what do they take? and do they come to the house to check what you say is correct? we don't have a great deal of luxury items, we do have a flat screen tv with surround system, but have had that for 2 1/2 years, we have a camera and a cam-corder, again not brand new, a wii - again we got that over 2 years ago, all got when things were a bit better. Will they want any of that?

I have just taken a contract out on a mobile phone, but that was because I had a pay as you go phone and was spending around £25 pm on it, so decided to go back onto contract, for ease, and we got a free xbox 360 with it which we will use for the youngests christmas present, which I thought was a good idea, you know not spending any more a month and a fab present too boot! again I got this before I realised just how bad it was, will going bankrupt affect this? I don't think that the monthly amount is over much, and I need a reliable phone as need to be contactable by the school as my eldest son has special needs.

And then we get to my car, which is in some ways the crux of the problem, I bought it in November 2006, and got a loan of £10k on it, and it has been a total pain and cost us a fortune, literally, it is due for mot next month and we can't afford it, if we can't get it mended I can't work, which isn't necessarily a bad thing as am signed off this week due to stress. I asked the loan company to rearrange the loan to a personal loan but they have refused so I can't even sell it, will it be taken as part of the bankruptcy? I am kind of hoping it will !!

And then onto the justifying debts bit, how do you justify them? most of it is just general living, food, etc etc, we never go out, we don't have a lavish lifestyle, expensive holidays or anything, it's just gone. I did however in a moment of madness buy an engine for my eldests birthday/christmas present, which cost £125, will that get me in trouble? I didn't buy it knowing I would not be able to pay for it, I had my head firmly buried in the sand at that point I think!

Anyway, I think that's probably enough for now, well done if you managed to wade through this!!

Thanks in advance for any advice you can give me.

Holes_in_my_pocket

They wont come and take anything what is the value of the car the car loan will be added to your bankruptcy . The car will be probably reprocessed by the loan compamy

In_a_Mess_3

The total on the car loan is £5,500
The car is worth, not a lot really, around £2000, but as it needs a lot of work, probably less.

Holes_in_my_pocket

Best thing to do 1st is put your statement of affairs on here and you will get some good advice you can do your SOA on this link and paste it on here.

http://makesenseofcards.com/soacalc.html

philnicandamy

In_a_Mess wrote: »

So, have been to the CAB and looks like the only realistic option to us is to go bankrupt.

So, my questions are as I say very basic, I understand the fairly complicated bits but it's what we will/will not be able to keep, and the justifying the debts bits that bothers me.

Firstly, what do they take? and do they come to the house to check what you say is correct? nobody will call.. we don't have a great deal of luxury items, we do have a flat screen tv with surround system, but have had that for 2 1/2 years, we have a camera and a cam-corder, again not brand new, a wii - again we got that over 2 years ago, all got when things were a bit better. Will they want any of that? nope...only interested in high value items things the OR could sell on at auction worth £1000 or more

I have just taken a contract out on a mobile phone, but that was because I had a pay as you go phone and was spending around £25 pm on it, so decided to go back onto contract, for ease, and we got a free xbox 360 with it which we will use for the youngests christmas present, which I thought was a good idea, you know not spending any more a month and a fab present too boot! again I got this before I realised just how bad it was, will going bankrupt affect this? I don't think that the monthly amount is over much, and I need a reliable phone as need to be contactable by the school as my eldest son has special needs. the OR will allow for mobile phone payments in your bankruptcy as long as its not too high a month.

And then we get to my car, which is in some ways the crux of the problem, I bought it in November 2006, and got a loan of £10k on it, and it has been a total pain and cost us a fortune, literally, it is due for mot next month and we can't afford it, if we can't get it mended I can't work, which isn't necessarily a bad thing as am signed off this week due to stress. I asked the loan company to rearrange the loan to a personal loan but they have refused so I can't even sell it, will it be taken as part of the bankruptcy? I am kind of hoping it will !!

And then onto the justifying debts bit, how do you justify them? most of it is just general living, food, etc etc, we never go out, we don't have a lavish lifestyle, expensive holidays or anything, it's just gone. I did however in a moment of madness buy an engine for my eldests birthday/christmas present, which cost £125, will that get me in trouble? I didn't buy it knowing I would not be able to pay for it, I had my head firmly buried in the sand at that point I think! when you come to filling in the forms theres a great guide in the forum to help you..

Anyway, I think that's probably enough for now, well done if you managed to wade through this!!

Thanks in advance for any advice you can give me.

you need to contact one of the free debtlines in my sig below before you decide on what to do....IF they suggest bankruptcy then come back post away & we'll help all we can

In_a_Mess_3

phil and holes in my pocket, thanks! I will do the soa later when hubby is home to make sure that I don't miss anything!

The cab have suggested that bankruptcy is the way to go, and I have to say having read and read and read about it that I am inclined to agree with them, we are 'lucky' as we are renting so not house to worry about, so it's just the other bits!!

Will be interested to get your views from the soa though, be back later!

tigerfeet2006

In_a_Mess wrote: »

So here it is in all its glory!!

It is a lot worse than it has been as I haven't included my wages, which were £720 take home, but as I won't be able to get my job from next month due to the car issues I haven't included them, and even with them the eagle eyed amongst you will have noticed that we would still be short by £200 every month. We have been using the cards to mop up the shortfall but can't anymore as they are all maxed to the limit.

The car maintenance figure is high as it has cost us so far this year a £1000 and would be another £500 next month if we could afford it. And I have put it as worth £2000 but I doubt it would be that as it won't have an MOT from next month.

Right, I would suggest you don't pay the HP on the car and buy a run around.

Anyway, what do you think? :eek:


Statement of Affairs and Personal Balance Sheet

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................ 1696
Partners monthly income after tax....... 0
Benefits................................ 123
Other income............................ 0
Total monthly income.................... 1819

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 210
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 80
Gas..................................... 80
Oil..................................... 0
Water rates............................. 77 This is high. Does it include arrears?
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 17 £12
Satellite/Cable TV...................... 17 not allowed on SoA must come out of surplus.
Internet Services....................... 17 ditto unless essential for work/study
Groceries etc. ......................... 440 £600
Clothing................................ 40 £120
Petrol/diesel........................... 50 this is low, are you sure it is correct?
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 100 £40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 76 £5 per week per child activities. £2 per day primary and £3 per day secondary school lunches.
Medical (prescriptions, dentist etc).... 10 £20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 16
Life assurance ......................... 80 the OR will probably have an interest in this
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40 not allowed by most OR's
Haircuts................................ 10 £10 per adult £5 per child
Entertainment........................... 0
Holiday................................. 0 £80
Emergency fund.......................... 0
Total monthly expenses.................. 2130


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5500.....(210)......10
Total secured & HP debts...... 5500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Black Horse....................3800......120.......10
Barclays.......................3000......60........0
Egg............................10400.....290.......26.9
Next...........................250.......30........29.9
Lloyds tsb overdraft...........600.......0.........0
RBOS Overdraft.................5000......0.........0
RBOS Card......................2000......60........18.9
Barclaycard....................4500......100.......18.9
Total unsecured debts..........29550.....660.......-


Monthly Budget Summary
Total monthly income.................... 1,819
Expenses (including HP & secured debts). 2,130
Available for debt repayments........... -311
Monthly UNsecured debt repayments....... 660
Amount short for making debt repayments. -971

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -5,500
Total Unsecured debt.................... -29,550
Net Assets.............................. -33,050

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

This is the sort of figures the OR will be looking at. Are you both going BR?

How far away is work? Your petrol is low. Don't pay the HP on the car and get a run around. As it is on HP anyway the HP co. will most likely want it back.

Any arrears with utilities will be included in the BR.