Money in bank account

seh567

Hi

I have debts of £16k and after paying a DMP with CCCS and recently becoming unemployed I have been advised to file for bankruptcy. I have signed on for benefits, ie JSA, HB & CTB (not yet received any). I want to get the ball rolling for bankruptcy as soon as possible but I am worried about my bank account. When I realised I had a serious debt problem and one of my creditors was my bank (overdraft) I changed to a LLoyds tsb basic account which I have been using the last couple of months. However, I have just been laid off from work and my last wages was rather more than usual, ie 6 weeks wages, bonus + expenses so my current bank balance is unusually high at £1800. I want to withdraw it so that my account shows a nil balance at time of BR, but will the OR investigate and question what I have spent it on? I can't say its for rent or ctb because I am waiting for benefits to kick in and other living expenses would not come to this amount. I could explain £900 ie, £200 repayment to parents for loan of expenses costs, £200 Xmas present expenditure, £510 fees for bankruptcy but I would still have £900 to justify. Would the OR seriously have an interest in it as an asset given that I am now unemployed and will need it to top up my benefits because on a month to month basis I will be in deficit of approx £190 re income/expenses. I would be grateful for any advice.

BrightonLass

Hi there. I was made redundant in June this year and have just had my 1hr telephone interview with the OR. I had to give a breakdown on what my last salary payment was and what I had spent the money on to the date of the BR. I had £450 in cash left and the OR advised this was reasonable expenses and they weren't interested in it. Be careful what you spend the money on as anything that can be classed as an asset, they will have it. If you repay any monies to your parents this can be said to be favouring creditors as your parents become creditors.

tigerfeet2006

seh567 wrote: »

Hi

I have debts of £16k and after paying a DMP with CCCS and recently becoming unemployed I have been advised to file for bankruptcy. I have signed on for benefits, ie JSA, HB & CTB (not yet received any). I want to get the ball rolling for bankruptcy as soon as possible but I am worried about my bank account. When I realised I had a serious debt problem and one of my creditors was my bank (overdraft) I changed to a LLoyds tsb basic account which I have been using the last couple of months. However, I have just been laid off from work and my last wages was rather more than usual, ie 6 weeks wages, bonus + expenses so my current bank balance is unusually high at £1800 That is fine. I want to withdraw it so that my account shows a nil balance at time of BR, but will the OR investigate and question what I have spent it on?Yes he will I can't say its for rent or ctb because I am waiting for benefits to kick in and other living expenses would not come to this amount. I could explain £900 ie, £200 repayment to parents for loan of expenses costs Not a good idea this prefering one creditor over another and the OR will take a dim view, you will have to get together bits of money here and there so it isn't obvious, £200 Xmas present expenditure again the OR will have a dim view of this, £510 fees for bankruptcy This is fine. but I would still have £900 to justify. Would the OR seriously have an interest in it as an asset given that I am now unemployed and will need it to top up my benefits because on a month to month basis I will be in deficit of approx £190 re income/expenses. I would be grateful for any advice.

The OR will accept that you will have living expenses untill JSA etc. kicks in and let you keep some. DO YOU HAVE APPLIANCES THAT ARE GOING TO NEED REPLACING SOON? (oops! caps. sorry ) Or your sofa? Just make sure you keep reciepts.

If I were you I would get a Co-op Cashminder or Barclays Cash account sorted and your benefits paid into that.

seh567

My JSA will be paid into my mothers bank account for the time being. I am not in any need for new furniture. I could pay a months rent and council tax but will be in creditt when HB & CTB kicks in. Maybe I should go and do a big food shop this weekend. Would it be worth delaying BR for a couple of months for this balance to go down as it surely will as I will have a deficit between income and expenses on a monthly basis if I don't get a job quickly.

seh567

As my benefits have not yet kicked in yet I have paid £400 rent today (is overdue anyway) and will be needing food, petrol so can reduce it further by £200 over the weekend and if I take out another £500 for court fees I would be left with about £800 in the bank. IS THIS A REASONABLE AMOUNT LEFT FOR LIVING EXPENSES and is it likely the OR will exempt it as such given that I am unemployed or should I wait a further month so it reduces further?

Can you look at my SOA (when my benefit payments start) and advise if I should add more or less please.


Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 707 JSA, HB & CTB
Other income............................ 0
Total monthly income.................... 707
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 351
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 11
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 9
Entertainment........................... 20
Holiday................................. 40
Emergency fund.......................... 0[
Total monthly expenses.................. 1052

Assets
Cash.................................... 900
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................0
Total Assets............................ 1900

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2615......0.........0
credit card....................4110......0.........0
loan...........................1776......0.........0
overdraft......................3485......0.........0
loan...........................3509......0.........0
Total unsecured debts..........15495.....0........

Monthly Budget Summary
Total monthly income.................... 707
Expenses (including HP & secured debts). 1,052
Available for debt repayments........... -345
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -345
Personal Balance Sheet Summary
Total assets (things you own)........... 1,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,495
Net Assets.............................. -13,595
[

mysterio_2

seh567 wrote: »

As my benefits have not yet kicked in yet I have paid £400 rent today (is overdue anyway) and will be needing food, petrol so can reduce it further by £200 over the weekend and if I take out another £500 for court fees I would be left with about £800 in the bank. IS THIS A REASONABLE AMOUNT LEFT FOR LIVING EXPENSES and is it likely the OR will exempt it as such given that I am unemployed or should I wait a further month so it reduces further?

Can you look at my SOA (when my benefit payments start) and advise if I should add more or less please.


Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 707 JSA, HB & CTB
Other income............................ 0
Total monthly income.................... 707
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 351
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 40 seems low
Gas..................................... 40 ditto
Oil..................................... 0
Water rates............................. 16 really this low?
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 11 unless for work/schoolwork NOT allowed
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 9
Entertainment........................... 20 NOT a chance sorry
Holiday................................. 40
Emergency fund.......................... 0[
Total monthly expenses.................. 1052

Assets
Cash.................................... 900
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................0
Total Assets............................ 1900

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2615......0.........0
credit card....................4110......0.........0
loan...........................1776......0.........0
overdraft......................3485......0.........0
loan...........................3509......0.........0
Total unsecured debts..........15495.....0........

Monthly Budget Summary
Total monthly income.................... 707
Expenses (including HP & secured debts). 1,052
Available for debt repayments........... -345
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -345
Personal Balance Sheet Summary
Total assets (things you own)........... 1,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,495
Net Assets.............................. -13,595
[

just a few thoughts till someone better comes along

dalip

seh567 wrote: »

As my benefits have not yet kicked in yet I have paid £400 rent today (is overdue anyway) and will be needing food, petrol so can reduce it further by £200 over the weekend and if I take out another £500 for court fees I would be left with about £800 in the bank. IS THIS A REASONABLE AMOUNT LEFT FOR LIVING EXPENSES and is it likely the OR will exempt it as such given that I am unemployed or should I wait a further month so it reduces further?

Can you look at my SOA (when my benefit payments start) and advise if I should add more or less please.


Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 707 JSA, HB & CTB
Other income............................ 0
Total monthly income.................... 707
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 351
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 11
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 9
Entertainment........................... 20NOPE
Holiday................................. 40for a single person a bit high maybe £30
Emergency fund.......................... 0[
Total monthly expenses.................. 1052

Assets
Cash.................................... 900
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................0
Total Assets............................ 1900

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2615......0.........0
credit card....................4110......0.........0
loan...........................1776......0.........0
overdraft......................3485......0.........0
loan...........................3509......0.........0
Total unsecured debts..........15495.....0........

Monthly Budget Summary
Total monthly income.................... 707
Expenses (including HP & secured debts). 1,052
Available for debt repayments........... -345
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -345
Personal Balance Sheet Summary
Total assets (things you own)........... 1,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,495
Net Assets.............................. -13,595
[

In my opinion you are £300 over your income.........ok whilst you have savinigs but you need to look at this long term and if the judge thinks that bc will not help he will refuse you. Dx

seh567

dalip wrote: »

In my opinion you are £300 over your income.........ok whilst you have savinigs but you need to look at this long term and if the judge thinks that bc will not help he will refuse you. Dx

Hi Dalip, not sure what you are saying. Are you saying I should have no more than £600 in the bank at time of BR. Cash in bank at this moment in time is my last paid salary + bonus + expenses not savings. I have thought long and hard about BR and didn't want to go down this route. Since Oct last year I have failed to find long term employment and have signed on benefits 3 times after finding a job then being laid off. When I first went to CCCS for advice they suggested BR but I managed to persuade them to put me on a DMP with financial assistance from my parents because I had just started a job and wanted to be responsible and pay my debts. I started a job with a small company who said there was lots of work for me in the Southern area and I thought my luck had now changed but from day one I realised there was not enough work for me to maintain the wage they were paying me. They were obviously not good business people and reluctanly had to lay me off at the end of October. Even though I am still paying a DMP (reduced now to £25 because of circumstances) I am still getting harrassed, am stressed and worried all the time and some of my creditors are refusing to stop interest and charges so the debt is increasing. When I called CCCS about my change of circumstances after the review their advice was to file for BR. I don't see what choice I have and I need to put this behind me so I can concentrate on finding a job and getting on with my life. Since April my total earnings including benefits is approx £6k so I don't know of any other way I can fund my debts and will be really upset if the OR decides to take this cash in the bank as an asset since its part of my very limited earnings this year

kerrypn

Hi

I think Dalip was saying that your outgoings exceed your income even after the bankruptcy-so you will end up in debt again-hence the judge may not see Bankruptcy as a solution for you. You need to cut down your outgoings on the SOA to resolve this.

I will take a look and post back....

kerrypn

seh567 wrote: »

As my benefits have not yet kicked in yet I have paid £400 rent today (is overdue anyway) and will be needing food, petrol so can reduce it further by £200 over the weekend and if I take out another £500 for court fees I would be left with about £800 in the bank. IS THIS A REASONABLE AMOUNT LEFT FOR LIVING EXPENSES and is it likely the OR will exempt it as such given that I am unemployed or should I wait a further month so it reduces further?

Can you look at my SOA (when my benefit payments start) and advise if I should add more or less please.


Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 707 JSA, HB & CTB
Other income............................ 0
Total monthly income.................... 707
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 351 fine
Management charge (leasehold property).. 0
Council tax............................. 77 fine
Electricity............................. 40 fine
Gas..................................... 40 fine
Oil..................................... 0
Water rates............................. 16 fine
Telephone (land line)................... 12 You may need to cancel this or the mobile
Mobile phone............................ 20 as above
TV Licence.............................. 12 fine
Satellite/Cable TV...................... 0
Internet Services....................... 11 Also this may have to go
Groceries etc. ......................... 200 You can save money on your food shopping I think-I feed a family of 4 on this
Clothing................................ 40 Take this to 0
Petrol/diesel........................... 60 fine
Road tax................................ 15 as above
Car Insurance........................... 25 as above
Car maintenance (including MOT)......... 25 as above
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4 fine
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 Take this to 0
Haircuts................................ 9
Entertainment........................... 20 This to 0
Holiday................................. 40 This to 0
Emergency fund.......................... 0[
Total monthly expenses.................. 1052

Assets
Cash.................................... 900
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................0
Total Assets............................ 1900

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2615......0.........0
credit card....................4110......0.........0
loan...........................1776......0.........0
overdraft......................3485......0.........0
loan...........................3509......0.........0
Total unsecured debts..........15495.....0........

Monthly Budget Summary
Total monthly income.................... 707
Expenses (including HP & secured debts). 1,052
Available for debt repayments........... -345
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -345
Personal Balance Sheet Summary
Total assets (things you own)........... 1,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,495
Net Assets.............................. -13,595
[

If you take the values I have suggested to 0 that should bring your total outgoings to £801. Explain in your SOA that you are actively seeking work and need the money in your account to make up the current £100 per month shortfall between benefit and outgoing.

Explain that this is only short term and you intend to find work asap.

Hope this helps

seh567

Thanks Kerrypn

I bumped up some of these items because after reading some other advice on these forums it said expenses for BR was more generous than a DMP SOA. I don't spend £200 on food nor do I spend quite as much on gas/electricity, I do need the internet for jobseeking but my mum is paying for this at the moment. I don't spend that much on clothing and I don't spend on holidays so from your advice I should be able to get it down.

Do I have a realistic chance of persuading the OR that I can keep the monies to assist the monthly shortfall whilst I find a job?

I am insolvent and really would not know what to do if I won't be accepted for BR. Would I just have to ignore all attempts to pay my debts and force the creditors to take me to court and possible force BR?