Not sure about CAB advice

So_confused_2

Hi all, this is my first post and I left the CAB feeling ok but looking on the internet now I am very confused.

The advisor looked at my total unsecured debt of £33k and advised that I was unlikely to be able to get an IVA and should go for bankruptcy. I'm not currently working but am interviewing for jobs, I may get a salary of around £25k pa.

He advised that my car which is worth about £2,500 probably won't be taken as part of a bankruptcy order. He also advised that once the bankruptcy is filed I won't have to make any further payments. I'm sure this is wrong, don't you have to continue paying towards the debts from any spare income until you're discharged?

I have the feeling I've been quite wrongly advised.

Any advice you could give would be most appreciated.

Thanks x

nervousmother

Nothing is sure about cars. If you need it for work and if you get a nice OR you may be allowed to keep it. but be aware, mine was worth 1800, needed for work and i had to find £500 in order to keep it.

As for not making any payments, well you wont have to pay anything to your creditors direct but you may end up paying into a income payments agreement/order. This is only done if you have more than £99 surplus per month after allowed expenditure.. best thing to do is post your statement of affairs for us to have a look at..

nervousmother

TO add:
You wont have to pay an ipa/ipo if your only income is benefits, but once you got a job you may have to pay into one.

So_confused_2

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1500 (haven't got a job but hoping for around this amount)
Partners monthly income after tax....... 0
Benefits................................
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 292 (shared ownership)
Secured/HP loan repayments.............. 0
Rent.................................... 276
Management charge (leasehold property).. 0
Council tax............................. 86
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 15
Mobile phone............................ 50
TV Licence.............................. 13
Satellite/Cable TV...................... 18
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 180
Road tax................................ 13
Car Insurance........................... 41
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............
Medical (prescriptions, dentist etc).... 35
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 12
Other insurance......................... 22
Presents (birthday, christmas etc)...... 20
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
School Dinners.......................... 0
Child Maintenance....................... 0
Total monthly expenses.................. 1483

nervousmother

So_confused wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1500 (haven't got a job but hoping for around this amount)
Partners monthly income after tax....... 0
Benefits................................
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 292 (shared ownership)
Secured/HP loan repayments.............. 0
Rent.................................... 276
Management charge (leasehold property).. 0
Council tax............................. 86
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 15
Mobile phone............................ 50 seems too high.. put in 25
TV Licence.............................. 13
Satellite/Cable TV...................... 18 not allowed remove
Internet Services....................... 10 only allowed if needed for work
Groceries etc. ......................... 200
Clothing................................ 30 40
Petrol/diesel........................... 180
Road tax................................ 13
Car Insurance........................... 41
Car maintenance (including MOT)......... 30 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............
Medical (prescriptions, dentist etc).... 35 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 12
Other insurance......................... 22 what is this
Presents (birthday, christmas etc)...... 20 not allowed in br remove
Haircuts................................ 25 10
Entertainment........................... 0
Holiday................................. 20 30
Emergency fund.......................... 0
School Dinners.......................... 0
Child Maintenance....................... 0
Total monthly expenses.................. 1483

Not all OR's allow holidays, bit hit and miss but put in 30.. The or may have interest in your life insurance too

nervousmother

Is there any equity in your property?

The OR may question your high petrol costs too.

So_confused_2

My property is in negative equity, does that mean it won't be sold?

alibongo54

I cant comment on whether they would or not sell it as have no knowledge in that area, but at anytime a property is sold and there is a shortfall (negative Equity) all parties to the mortgage remain liable for this debt, it just becomes unsecured.

alibongo54

Have your thought about contacting CCCS to see what they say?
0800 138 1111

fiveyearplan

alibongo54 wrote: »

I cant comment on whether they would or not sell it as have no knowledge in that area, but at anytime a property is sold and there is a shortfall (negative Equity) all parties to the mortgage remain liable for this debt, it just becomes unsecured.

If there is a shortfall in the sale of the property it would go into the BR's bankruptcy providing they don't have a joint mortgage.

snowbear21

So_confused wrote: »

My property is in negative equity, does that mean it won't be sold?

First: I volunteered for CAB for awhile and heard more incorrect and bad advice being given than good. For the real lowdown, see a solicitor. They usually give the first meeting free.

Second: they frequently tell you they won't take the house. They lie. They wait until just before the thing's due to be discharged - and THEN they take your house.

Like I said - SEE A SOLICITOR.