Two questions....

Youthiswastedontheyoung

Hi Everyone!

I can see me becoming a regular here so sorry to nag and bug you all hehe.

My husband is worried that we may be refused bankruptcy and end up losing the £1000 it costs..... Is this possible at all? I will repost our SOA at the bottom.

The other thing (for now) is that we are waiting for a decision on a trust fund to help with fees and a couple of other things before we actually start filling in forms etc but we are going to cancel the bank loan and credit card in the mean time to make sure we have enough money for when the new baby comes (in a few weeks). How long will it take before the banks start chasing us and taking action etc?

Thank you


Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1260
Partners monthly income after tax....... 680
Benefits................................ 260
Other income............................ 0
Total monthly income.................... 2200
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 168
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 76
Electricity............................. 80
Gas..................................... 80
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 12
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 430
Clothing................................ 90
Petrol/diesel........................... 100
Road tax................................ 14
Car Insurance........................... 39
Car maintenance (including MOT)......... 12
Car parking............................. 30
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 50
Emergency fund.......................... 10
Total monthly expenses.................. 1845
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5400.....(168)......19
Total secured & HP debts...... 5400......-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Bank Loan......................21753.....380.......8
Credit Card....................4200......69........19
Family Loan....................850.......0.........0
Total unsecured debts..........26803.....449.......-
Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,845
Available for debt repayments........... 355
Monthly UNsecured debt repayments....... 449
Amount short for making debt repayments. -94
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -5,400
Total Unsecured debt.................... -26,803
Net Assets.............................. -32,203

confused76

hiya
have you taken advice from a debt charity? did they say bankruptcy is an option? i'm not sure under what circumstances a br would be refused. i believe br is an option if you are insolvent, eg you can't meet all of your payments each month.
i missed my first payments last month, the calls started as soon as they twigged a payment was missed unfortunately. if the calls bother you, you can write to them and insist that they only contact you in writing, which is what i did as they rang me at work and obviously couldn't speak in front of colleagues! if you have internet banking with any of your creditors, go online and delete your number if you can, i wish i had thought of this.
wish you all the best, keep posting questions there are loads of very helpful people on here!
confused76

Youthiswastedontheyoung

Thank you Confused

Apparently the helpful ones are only in the BR forum not the benefits one, jeez.

We have been told by CCCS that bankruptcy is an option. I don't think we can be "refused" from what I have read but my husband is worried we might be and will end up in a worse position.

So_Sad_Angel

Hi YIWOTY (sorry to shorten your name)

Good luck with the impending birth & I agree with confused....have you sought advice CCCS/CAB Nat Debtline?

Given that the shortfall to repay debt is running at -£94 on your current budget I wonder if there is any way of cutting back to avoid BR.....Entertainment £30, Emerg Fund £10, maybe cut clothing a little from £90 & grocery a little...then you are quite close to being solvent. It will be tight but still looks do-able from your SOA.

You have already (without cutbacks ) sufficient to do a DMP with a very good level of debt reduction potential.

Obviously I don`t know the big picture of your situation but I would avoid BR at all costs if its possible. Please seek advice.

Angiexx

Youthiswastedontheyoung

No problem shortening the name I wish I had thought of that it is a pain in the bum logging in!

Well we have looked at all other options and this is the best course for us. Whilst we are currently in an OK situtation to enter IVA etc our income is going to be dropping again (mine will cease basically) as we have no childcare options once my maternity runs out. So to be honest we are preempting the mess we will end up in. Pretty sensible I thought but its getting quite stressful even though we are set on BR now and both 100% sure about it.

So_Sad_Angel

Ahhhhh I see.....once your pay ceases then yes it will deepen the situation for you & I can see where the BR is an option there. Thankyou for explaining.

The only time a judge will question is where you are not technically insolvent. Will your income have ceased before you intend go BR? If so then I would amend SOA to show the situation without your income so that it shows the true position that you will be in.

Hope that makes sense.....btw welcome.

Angiexx

Youthiswastedontheyoung

It will reduce by £200 from the above either just before or just after we go ahead with the BR. We will amend the SOA depending on when we do it etc.
Even though BR is our only realistic option and the one we are 100% sure of it is still turning out to be quite stressful oh well can't blame anyone but ourselves.
On top of it all housing benefits are threatening court action over an overpayment (my fault obviously though).
Thanks Angie

So_Sad_Angel

Hi Hun,

Remember that your priority is the upcoming new arrival....BR is stressful anyway so don`t rush as you have enough going on. Offer creditors £1 if you are worried about any action....they are usually quite amenable if there are circumstances & that will give you some breathing space.

Have you spoken to Welfare Rights at local council re the housing benefit situation....can they assist or direct you to community law centre if there is one in your area?

We all blame ourselves but that blame just makes us feel worse & does`nt help with the solution. `You are where you are` with the debt.....accept that you cannot change the situation by worrying about it & that now you are determined to sort it out once & for all.

Take care, & if you need a chat then feel free to PM me.

Angiexx

Youthiswastedontheyoung

Thank you so much
I think the threatening letter and impending weekend (no contact with council) seemed to throw me off. I've been very calm about it all until this evening. Plus I didn't explain myself very well and got some harsh comments about the housing benefit overpayment on the benefits forum.

I think once the DD etc are transfered and we get the fees together I'm just going to ring the court and get it over and done with. I think I will feel a lot better about it when we know exactly what the OR will take each month and that noone can chase us and cause more stress.
It isn't like me to get upset must be the hormones

Thanks again Angie its nice to be able to thrash things out on here with people who understand. My husband is wonderful but finds going over it over and over again hard to deal with, whereas I find it theraputic