Our SOA don't think I have any tears left!!

deedub762

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 492
Partners monthly income after tax....... 1500
Benefits................................ 152.5
Other income............................ 0
Total monthly income.................... 2144.5

Monthly Expense Details
Mortgage................................ 637.1
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 84
Gas..................................... 0
Oil..................................... 0
Water rates............................. 28.21
Telephone (land line)................... 18.5
Mobile phone............................ 60
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 350
Clothing................................ 50
Petrol/diesel........................... 180
Road tax................................ 2
Car Insurance........................... 24.73
Car maintenance (including MOT)......... 50
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 16.38
Buildings insurance..................... 18.89
Contents insurance...................... 0
Life assurance ......................... 40.56
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Partners TAX............................ 200
Total monthly expenses.................. 2029.49

Assets
Cash.................................... 1500
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 500
Total Assets............................ 169000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 125830...(637.1)....3.9
Total secured & HP debts...... 125830

Unsecured Debts
Description....................Debt......Monthly...APR
Carpet Loan....................500.......18........0
Total unsecured debts..........500.......18........-

Monthly Budget Summary
Total monthly income.................... 2,144.5
Expenses (including HP & secured debts). 2,029.49
Available for debt repayments........... 115.01
Monthly UNsecured debt repayments....... 18
Amount left after debt repayments....... 97.01

Personal Balance Sheet Summary
Total assets (things you own)........... 169,000
Total HP & Secured debt................. -125,830
Total Unsecured debt.................... -500
Net Assets.............................. 42,670


Dear All,

I'm totally and utterly new to this and only stumbled onto this forum when investigating IVA's so please excuse me if I haven't made much sense.
A bit about our situation. I am currently on Maternity Leave and shall only be recieving statutory mat pay from the 18th Jan hence the low income for myself. I shall be returning to work at the end of April but as yet I'm unsure of my hours.

I'm finding it very hard to write this but I have recently found out that my husband has £12000 debt to the inland revenue which he has been lying to me about. With this years tax return it will take it up to £14k. We have been paying it off for the past year at £200 a month (silly me for thinking it was just to pay last years tax return!) I only found out the truth when I did a credit check on him (with his permission I might add) and found that he has a CCJ granted 2 years ago.

Anyway I own a house as above which my husband isn't named on either the deeds or the mortgage (was getting around to it but now am thanking God I didn't!) I really really wanted to move as things are too cramped around here and we do want to expand our family when time and finances allow. Having said that we weren't looking at property any more expensive than our house (hoping to find somewhere that needs a bit of work). The car is also in my name.

My Dad suggested 2 routes for my husband. No 1 Bankrupcy (which seems very exterme to me), with the view that our assets are legally mine and therefore can't be touched. No 2 IVA however I have just read that its costs approx £7500 over the period of the agreement and is really for debts over £20k. I'm not sure if we would be able to get a mortgage if my husband has either of those on his record, I doubt it with bankrupcy.

Any advice would be gratefully received. I have never had any debts (bar a car loan, paid off in time) and I just absolutely gutted about this, mostly because of the lying but also because I now have to face that we might not be able to move and will be stuck with a baby on a busy road with no parking and not enough room for us to grow as a family. I have worked so hard to get myself in this position and I'm so angry that I'm having to pay for my husbands life prior to meeting me. Oh wait have found a few more tears in me

Any advice would be gratefully recieved, maybe its time to cash in on that life insurance policy of his:A??!!!

Thankyou for reading this
D

ps NB partners income after tax is before tax but his tax payments are in monthly expenses column as he is self employed.

planning_ahead_2

Hi

I am very new to this DFW stuff myself, so can't really offer any advice - other than to say if you love your DH don't be too hard on him. I know from experience how easy it is to get into debt and also how hard it is to talk about it to anyone (especially the one you love funny enough). Now it's in the open hopefully you can work together and your relationship will grow stronger as a result.

Someone with far more knowledge than me will be along shortly to offer guidance.

Good luck with everything.

dib-dab

Monthly Expense Details
Mortgage................................ 637.1 Is this interest only or repayment? I know it may feel like a step backwards but you could think about going interest only whilst you focus on the other debts. However this is effectively just shifting the debt so you might not feel OK about this.
Council tax............................. 122
Electricity............................. 84 This sounds high - is it for gas and electricity combined? Have a look around and make sure you are getting the cheapest deal.
Gas..................................... 0 No gas? Or is it included in electricity?
Water rates............................. 28.21
Telephone (land line)................... 18.5 Can you get cheaper? Make sure you are getting one with free UK calls.
Mobile phone............................ 60 You might be able to cut these - assume this is for 2 phones? There are cheaper contracts than £30 so have a look at whether you could save here.
TV Licence.............................. 12.12
Internet Services....................... 5
Groceries etc. ......................... 350 Sounds pretty high - read the advice on here about meal planning and buying more budget groceries.
Clothing................................ 50 Do you really need to spend this?
Petrol/diesel........................... 180 Expensive - is all of this travelling essential?
Road tax................................ 2 Very low - is this correct?
Car Insurance........................... 24.73
Car maintenance (including MOT)......... 50
Car parking............................. 20 Where is this for? Can it be cut? eg parking further away in a free area and walking?
Pet insurance/vet bills................. 16.38
Buildings insurance..................... 18.89
Life assurance ......................... 40.56 Are you getting the best deal?
Presents (birthday, christmas etc)...... 50 Can you cut this?
Haircuts................................ 20
Entertainment........................... 40
Partners TAX............................ 200
Total monthly expenses.................. 2029.49


So sorry to hear that you have had this confession from your husband. But at least you know now and he has not his it any longer. I am not trying to excuse him but if you read posts on here from some of the people who have been in your husband's position and the fear they have had of telling a loved one then it may help you understand. But it sounds like you are standing by him which is great as this is obviously a huge shock and disappointment to you especially when you have been so careful yourself with planning for your future. Your husband is lucky to have someone so understanding who has come on here for help and is willing to support him, a massive decision for you I am sure.

I don't know anything about bankruptcy and that side of things but there will be plenty of people on here who can advise you.

Good luck with everything and please don't cry any more, you will feel a whole lot better when you start putting plans in place to deal with this.

SteveV2

You say your partner earns £1500 after tax yet pays £7000 a year in tax? Seems alot that. More than a 3rd unless I have my wires crossed.

deedub762

Hi,
Thankyou for the responces.
The mortgage is repayement which I have only been on since sept but would ideally like to stay on so I feel like I'm getting somewhere with payments.
The Elec is incl gas and was found on here in the summer as being the best deal, not sure if its still valid though.
We estimate our phone bills to ensure no nasty suprises but my contract is £25 and DH is £10, we dont use landline (only have it for internet) however we have had to pay monre a month due to a slight bill that was run up but I think this is under review soon so will look into that. Also estimate clothing (although don't think we spend anywhere near this) hair cuts, parking (walking more, tried bus but was more expensive than parking!!) presents to try to plug the holes in the money buckey.
The life insurance was set up a few months back by a broker so should be the best deal but now I'm wondering if its worth the money, will be annoyed if neither of us has died before 65!!
The groceries are estimated and I have a spread sheet which I complete every month so hopefully I can reduce in a few months time when I know the actual cost of life witha baby. I do shop online now where I can so I plan our meals and don't get tempted by offers.
CAr tax is only £25 a year as low emission car. My husband is a self employed courier so drives to and from base and goes half on petrol for this with his boss, again like shopping I have overbudgeted so we don't risk going into OD but hope to cut back soon, I have a car that does very high miles to gallon.
Most of my budgeting is overestimated but would rather that than have no money left in pot, however we still dont seem to have much left every month. I am going to start a money diary to track every penny.
Thankyou for your advice again its very appreciated, and I do love him very much, still hurts that he couldn't tell me (I asked him so many times about his TAX and he lied to my face saying they had made a mistake) anyway we do have to move on I can see he is upset about it and nothing is going to change our situation Im just desperate to find a way to resolve it while still continuing our life plans with the move. Am I being silly should I just resolve to stay put?
D

deedub762

SteveV2 wrote: »

You say your partner earns £1500 after tax yet pays £7000 a year in tax? Seems alot that. More than a 3rd unless I have my wires crossed.

This years TAX bill works out at £2080 but he owes from past years £12000 (think its past 6 years which he has neglected to pay!) Its £1500 before tax but didn't realise that when out in the calculator but I have inputted the £200 per month we pay to tax in the outgoings column.
Thanks
D

talana

Take a deep breath.........
While I'm certainly not trying to belittle the shock you feel over this, a bit of perspective is also helpful.

An outstanding debt of £12000 needs dealing with,but it's certainly doable. If you browse this board you'll see people with much worse debt problems than that. And the good news is you have no other debts to speak of!
Forget bankruptcy, forget IVAs and focus on a plan to pay this back.
- You or your husband needs to contact the Inland Revenue in the first instance, ask for full details of the debt and see if you can negotiate a repayment schedule.
- You have £1500 cash in the bank which can go toward the repayment.
- Your car is worth £7000 you say. You may have to bite the bullet, sell it and replace with a cheap little runaround for now (say £2000). That's another £5000 toward the repayment.
- And that's before looking at your monthly outgoings.

theoretica

The £200 a month towards tax is only slightly higher than what he owes each year- are you sure that this is covering this year as well as the arrears and is not just the arrears?

deedub762

theoretica wrote: »

The £200 a month towards tax is only slightly higher than what he owes each year- are you sure that this is covering this year as well as the arrears and is not just the arrears?

It was set up last March to pay that years tax so isnt covering the arrears at all. We need to find a way to start paying it off but not sure if we can do IVA it doesnt sound worth it.

deedub762

talana wrote: »

Take a deep breath.........
While I'm certainly not trying to belittle the shock you feel over this, a bit of perspective is also helpful.

An outstanding debt of £12000 needs dealing with,but it's certainly doable. If you browse this board you'll see people with much worse debt problems than that. And the good news is you have no other debts to speak of!
Forget bankruptcy, forget IVAs and focus on a plan to pay this back.
- You or your husband needs to contact the Inland Revenue in the first instance, ask for full details of the debt and see if you can negotiate a repayment schedule.
- You have £1500 cash in the bank which can go toward the repayment.
- Your car is worth £7000 you say. You may have to bite the bullet, sell it and replace with a cheap little runaround for now (say £2000). That's another £5000 toward the repayment.
- And that's before looking at your monthly outgoings.

Thankyou, I know compared to some its not much but it truely !!!!!!s up my plans for a bigger house (same size mortgage though) as DH wont be able to get a mortgage with me with the CCJ and we wont be able to get a mortgage in the current climate with just my earnings.
Im trying hard to focus on moving forward as much as possible but with the post baby blues and brain its a bit hard:eek:

savingmummy

I would use the 9k assets if i was in this situation.
If you really want to sort it it has to be done.
I would stop the clothing a mth for now, reduce groceries, hair etc and really cut back for the time being.
Good luck x