new person here : quick question !

InnerPeace

Hi, I'm sorry you're in this situation with your Dad's loan, it's a really difficult place to be.

However, you are under a duty to declare ALL your debts, and that includes the one to your Dad. The choice is yours whether to include it but be aware that to knowingly fail to disclose something in your SA is strictly speaking a contempt of court, which is a criminal offence.

The examiner will ask about your borrowing history too, so again, not to declare it will be failing to co-operate with the OR and a non-disclosure. Lying about your income and outgoings also falls in the same category and preferring a creditor is misconduct.

That being said, the chances being found out that you're fiddling your expenses may be slim (depends whether your bank statements show that you clearly are, and if the OR obtains them), and the chances of any action being taken over such small sums is also slim (the repayments over a one year are not much).

How the OR will see it is that your other creditors also hoped to be repaid when they lent you money and your father is no different, it's always a risk when you lend someone money.

alastairq

Hi and welcome.

I fully appreciate the dilemma you are placed in, regarding your Dad.

Whatever path you chose, Dad will still have to continue making re-payments.
That is the downside of borrowing, and a downside of being a guarentor....[although Dad's not in this case]

An option open to you is, once your SOA has been posted...to see what expenditure you have....and for you to see where you can make your own savings....as said above.

Although Dad continues his payments, it may be possible for you to contribute at least something towards Dad's costs.....if not the full amount.

This you will have to negotiate with Dad.

However, I will point out that, BR itself normally lasts but for one year.

Your other debts will no longer need servicing....

so certainly after one year, you may be able to catch-up paymetns to your Dad???

t666

hi guys, here I am at last with a (muddled) SOA, im not sure what is allowed, what is not....

Based on just myself, I have 0 children. Obviously I havent included any debt in this... please remember I have to find the £181 for my dads payment (if possible!!!) I have use of my dads car... which is worth £800 ish, also on his insurance.

TOTAL MONTHLY INCOME AFTER TAX = 1596


RENT 417 (includes all bills)
Food/Housekeeping 400 (I live in central London)
Landline Talktalk/inc internet 30 (i have also inc 10 mobile
as dont think I can have
that !)
TV LICENSE 12
TOILETRIES 20
PRESCRIPTIONS 15 (Defo needed for meds)
CONTACT LENS 32 (defo needed/can this
count)
PUBLIC TRANSPORT 20
CAR TAX 10
CAR INSURANCE 35
CAR SERVICE/MAINT/BREAKDOWN 15
PETROL 100


TOTAL = 1106 (+ 181 dad loan ob not counted for OR)


I havent included, holidays, entertainment, presents , emerg fund, hair and clothing as I have NO IDEA whats allowed , can anyone help?
Based on this... do you think I would be made to make a salary payments thing? and am I going to scrape together the £181 for my dad!!


So sorry this seems a muddled SOA!!! My brain is about to blow up with stress

t666

oh in reply to you, InnerPeace, if the OR wonders why about the £181 payment to dad if they check my bank statements,, since the loan is in dads name my dad said the best idea is to say that he is making the payments from now on.... and the loan is now nothing to do with me. (its in his name remember) Obviously any money i can scrap together for him I would give him cash rather than an obvious payment from my bank account. (hope that makes sense too !!!)

Thanks everyone

t666

MicheH wrote: »

Within bankruptcy you can have a much easier allowance for expenses, so what you could do is shop on a very minimal budget, don't buy many clothes and not go on holiday to help your dad out with the payments. I don't think the OR needs to know about your dads loan and how you spend your essential expenses is up to you really. It will be tough for you I know.

I certainly wont be buying any clothes, hehe, or going on holiday and Im used to living on porridge lately!!

Tinytim

Hi t666,

I do feel very sorry for your predicament, but unfortunately there is no easy way out. BR exists as a last option to those who have unresolvable debt problems. As unfair as it seems, all unsecured creditors stand equally, and if you think about it, it has to be like this.

The best course of action is to be completely up front and honest with the OR, and try to hide nothing. You dad is one of your creditors as he has lent you the money. The fact that he borrowed this from elsewhere, and that the repayments you make to him are the same as the repayments he makes to the loan company is irrelevant. He is a creditor and should go on the forms as such, and you cannot formally favour him in any way, irrespective of the difficulties it may cause him.

As far as your expenditure is concerned, the OR is supposed to leave you with sufficient of your income to maintain a sustainable lifestyle without having to resort to borrowing. This includes a sufficient amount to eat a healthy balanced diet and clothe yourself, and can include such things as having your hair cut and paying for a modest holiday. If you choose to not take a holiday, or cut your own hair, then this will obviously leave you with some discretionary spending. However, it is unlikely that you will be able to find discretionary spending of £181 within what the OR may consider reasonable expenditure.

Do remember though that if you are assessed as having to pay an IPA/O, the OR will take between 50% and 70% of your surplus income, depending on the amount of surplus - the remaining 30%-50% is yours to spend as you see fit.

fiveyearplan

t666 wrote: »

hi guys, here I am at last with a (muddled) SOA, im not sure what is allowed, what is not....

Based on just myself, I have 0 children. Obviously I havent included any debt in this... please remember I have to find the £181 for my dads payment (if possible!!!) I have use of my dads car... which is worth £800 ish, also on his insurance.

TOTAL MONTHLY INCOME AFTER TAX = 1596


RENT 417 (includes all bills)
Food/Housekeeping 400 (I live in central London) 200 max
Landline Talktalk/inc internet 30 (i have also inc 10 mobile
as dont think I can have 40, include mobile in landline
that !)
TV LICENSE 12
TOILETRIES 20 comes out of housekeeping
PRESCRIPTIONS 15 (Defo needed for meds) 25
CONTACT LENS 32 (defo needed/can this this goes into prescriptions/dental/optical etc
count)
PUBLIC TRANSPORT 20
CAR TAX 10
CAR INSURANCE 35
CAR SERVICE/MAINT/BREAKDOWN 15
PETROL 100


TOTAL = 1106 (+ 181 dad loan ob not counted for OR)


I havent included, holidays, entertainment, presents , emerg fund, hair and clothing as I have NO IDEA whats allowed , can anyone help?
Based on this... do you think I would be made to make a salary payments thing? and am I going to scrape together the £181 for my dad!!


So sorry this seems a muddled SOA!!! My brain is about to blow up with stress

Fill this in. Put down £0 for entertainment and emergencies as these are not allowed. When you get to the end there is a button to click to format for MSE. Copy and paste into this thread.

http://www.makesenseofcards.com/soacalc.html

tech2_2

Is it possible to take any excess cash available from you credit cards to clear you debt with your dad? I know this is not good and the OR will not favour this but others with more experience may comment on what I have said, as it looks like you will get an IPA not matter what.........

Tech2

confused76

hi tech2 i don't think this is a good idea as this will be seen as favouring a creditor, and his dad may/will be asked to pay it back, sorry

tech2_2

It would only be favouring a creditor if payment was made post bankruptcy surley?

And if you paid the money directly to the loan account thrn how do they get it back?

Was the loan always in you dads name or did your dad take a loan to pay of your loan when u got into difficulty?