considering going Bankrupt, but have questions

WLITC

Okay, I'm considering bankrupt and have a couple of questions.

Firstly, situation is this. I'm earning around £14k. My take home pay is around £1025. I owe about £33k. Did the debt wizard thingy on the CCCS site quickly today and my priority expenditure comes out as £841, creditor payments each month are £879 and I have surplus of £184 remaining.

I did the SOA/budget fairly quickly so it might need tweaking, but assuming it is as stand then I understand that as I have a surplus of more than £99 a month then I will have to pay about 50% of this to the OR for 3 years. Correct?

Assuming thats correct and I pay say £92 a month for 3 years, who actually gets this money? Does it get spread between by creditors and and if I'm continuing to pay them for 3 year then does that mean my debts wont be satisified on my credit file for at least 3 years? I thought I read that debts should appears as satisfied no later than the date you come out bankrupcy (i.e 12 months) and then they would be removed six years after the satisfied date?

As mentioned, the CCCS plan suggests my priority commitments are £841.

breaksdown as :-

£412 Rent (I live in central london)
£43 mobile, internet and telephone
£5 satellite
£10 repairs and maintenance
£116 public transport (monthly travelcard)
£148 food, toiletires
£35 meals at work
£7 prescriptions
£10 dentist
£10 hairdresser
£20 footwear/clothes
£5 magazines
£10 sports & hobbies
£10 sundries/emergencies

Would I be likely to encounteer any resistance from the OR over these amounts? For items such as food, medicines, hairdresser, mobile, internet, etc I have just used the default amounts suggested by CCCS. Might be a daft question, but I live in Central London, are the OR's known to be tougher in London and force down the 'priority'expenditure?

Also what happens if my pay increases? At the moment I earn just under £14k. What happens if some months I do some overtime (not likely to happen often) or if down the line I get a different job or a pay increase earning quite a bit more, e.g £20k? Also if the change in salary (whether temp through overtime, change of job or pay rise) happened before I was discharged from BR would that hugely complicate thngs?

dojoman

welshladinthecity wrote: »

Okay, I'm considering bankrupt and have a couple of questions.

Firstly, situation is this. I'm earning around £14k. My take home pay is around £1025. I owe about £36.5k, but £3k is a student loan and I know that can't be included, so BR would be for the remaining £33.5k. Did the debt wizard thingy on the CCCS site quickly today and my priority expenditure comes out as £841, creditor payments each month are £879 and I have surplus of £184 remaining.

I did the SOA/budget fairly quickly so it might need tweaking, but assuming it is as stand then I understand that as I have a surplus of more than £99 a month then I will have to pay about 50% of this to the OR for 3 years. Correct?

Assuming thats correct and I pay say £92 a month for 3 years, who actually gets this money? Does it get spread between by creditors and and if I'm continuing to pay them for 3 year then does that mean my debts wont be satisified on my credit file for at least 3 years? I thought I read that debts should appears as satisfied no later than the date you come out bankrupcy (i.e 12 months) and then they would be removed six years after the satisfied date?

As mentioned, the CCCS plan suggests my priority commitments are £841.

breaksdown as :-

£412 Rent (I live in central london)
£43 mobile, internet and telephone
£5 satellite Not allowed
£10 repairs and maintenance
£116 public transport (monthly travelcard)
£148 food, toiletires £200
£35 meals at work
£7 prescriptions
£10 dentist
£10 hairdresser
£20 footwear/clothes £40
£5 magazines Not allowed in BR
£10 sports & hobbies Ditto
£10 sundries/emergencies Ditto

Would I be likely to encounteer any resistance from the OR over these amounts? For items such as food, medicines, hairdresser, mobile, internet, etc I have just used the default amounts suggested by CCCS. Might be a daft question, but I live in Central London, are the OR's known to be tougher in London and force down the 'priority'expenditure?

Also what happens if my pay increases? At the moment I earn just under £14k. What happens if some months I do some overtime (not likely to happen often) or if down the line I get a different job or a pay increase earning quite a bit more, e.g £20k? Also if the change in salary (whether temp through overtime, change of job or pay rise) happened before I was discharged from BR would that hugely complicate thngs?

If you get an IPA, and you have a change in circumstance whether for the good or bad you have to notify the OR. If you do another SOA, using the link below and repost it, I am sure someone will be able to help you.

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

debtinfo

welshladinthecity wrote: »

Okay, I'm considering bankrupt and have a couple of questions.

Firstly, situation is this. I'm earning around £14k. My take home pay is around £1025. I owe about £36.5k, but £3k is a student loan and I know that can't be included, so BR would be for the remaining £33.5k. Did the debt wizard thingy on the CCCS site quickly today and my priority expenditure comes out as £841, creditor payments each month are £879 and I have surplus of £184 remaining.

I did the SOA/budget fairly quickly so it might need tweaking, but assuming it is as stand then I understand that as I have a surplus of more than £99 a month then I will have to pay about 50% of this to the OR for 3 years. Correct? correct

Assuming thats correct and I pay say £92 a month for 3 years, who actually gets this money? Does it get spread between by creditors and and if I'm continuing to pay them for 3 year then does that mean my debts wont be satisified on my credit file for at least 3 years? I thought I read that debts should appears as satisfied no later than the date you come out bankrupcy (i.e 12 months) and then they would be removed six years after the satisfied date? That is correct about the date that they are marked as satisfied on the credit file. It has nothing to do with the bankruptcy just their own scoring system. The OR can continue to realise exisiting assets for as long as it takes the to finish the job. The money pays the bankruptcy fees first and then gets split prorata between creditors

As mentioned, the CCCS plan suggests my priority commitments are £841.

breaksdown as :-

£412 Rent (I live in central london)
£43 mobile, internet and telephone
£5 satellite
£10 repairs and maintenance
£116 public transport (monthly travelcard)
£148 food, toiletires
£35 meals at work
£7 prescriptions
£10 dentist
£10 hairdresser
£20 footwear/clothes
£5 magazines
£10 sports & hobbies
£10 sundries/emergencies

Would I be likely to encounteer any resistance from the OR over these amounts? For items such as food, medicines, hairdresser, mobile, internet, etc I have just used the default amounts suggested by CCCS. Might be a daft question, but I live in Central London, are the OR's known to be tougher in London and force down the 'priority'expenditure? I will leave SOA comments to someone else apart from to say just put down what you actually spent, dont just go with what you think the limits are, as long as you can give a reasonable justification you have a chance of having it accepted. If anything the OR will allow higher expenses for london due to the higher cost of living

Also what happens if my pay increases? At the moment I earn just under £14k. What happens if some months I do some overtime (not likely to happen often) or if down the line I get a different job or a pay increase earning quite a bit more, e.g £20k? Also if the change in salary (whether temp through overtime, change of job or pay rise) happened before I was discharged from BR would that hugely complicate thngs? The OR can adjust the IPA up or down according to how your income and expenses change

Hope that helps

confused76

hi have a go at completing the soa link dojoman posted above, there may be things you haven't thought of. if you format it for mse and paste here we can take a look

WLITC

debtinfo wrote: »

That is correct about the date that they are marked as satisfied on the credit file. It has nothing to do with the bankruptcy just their own scoring system. The OR can continue to realise exisiting assets for as long as it takes the to finish the job. The money pays the bankruptcy fees first and then gets split prorata between creditors

Debtinfo, I'm confused. So if I have enough over for an IPA for 3 years would my credit file still be clear of BR in 6-7 years? or because the debts won't be settled for 3 years they would be on my file for 9 years (3 years to settle and then 6 years after settled date)?

Dojoman, this is my SOA. Again, I'm not sure of the numbers for things like entertainment, birthdays, etc. There seems to be conflicting reports as to what I can and can't include. How does this look? BTW, haven't included my student loan of £3k. should I? at the moment I'm defered and not paying anything monthly as I ain't been earning enough to repay.


Statement of Affairs and Personal Balance SheetMonthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 412
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 9
Mobile phone............................ 15
TV Licence.............................. 6
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 116
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 25
Emergency fund.......................... 10
Total monthly expenses.................. 878
Created using the SOA calculator at www.makesenseofcards.com.

debtinfo

hi welsh,

The credit agencies are just a little club that has nothing to do with the legalities of debt. They will mark the debt as "satisfied" before your discharge. Its just how they choose to tag people to decide who to lend to.

The bankruptcy deals with the legalities of debt and the OR will go on realising assets to the extent that the law allows. The claim by the creditor is fixed at the date of the bankruptcy. For example if you have a set of shares that takes 5 years to realise the OR will wait that long realise them and pay out to creditors that were fixed at the date of the order.

The credit ref agencies and the bankruptcy have nothing to do with each other

WLITC

debtinfo wrote: »

hi welsh,

The credit agencies are just a little club that has nothing to do with the legalities of debt. They will mark the debt as "satisfied" before your discharge. Its just how they choose to tag people to decide who to lend to.

The bankruptcy deals with the legalities of debt and the OR will go on realising assets to the extent that the law allows. The claim by the creditor is fixed at the date of the bankruptcy. For example if you have a set of shares that takes 5 years to realise the OR will wait that long realise them and pay out to creditors that were fixed at the date of the order.

The credit ref agencies and the bankruptcy have nothing to do with each other

Thanks Debtinfo! Just thought of another couple of questions., some of the forms/SOA ask about other adults in the house. I live in a shared house with 4 others adults (not related or in a relationships with any of them). Do I have declare them when asked about number of adults I live with? Also, some of the bills I have to pay towards but they aren't in my name, like the phone. Will I have to provide the OR with old reciepts/bills/evidence for for things like the phone, TV license, mobile, etc? Also, I rent from a private landlord, will I need to get him to a letter to confirm the amount of my rent is?

WLITC

Hey, can anyone answer the questions in the above post about evidence of rent and bills like telephone, etc? What else will the OR need in terms of evidence? Bank statements/credit card bills .. how far back? I haven't had a paper bank and creditcard statements in over a year, will they accept ones printed from my online account or will I need to ask the bank/cc for proper copies?

Also, can I just clarify, if the OR gives me a IPA for 3 years and my job changes after I've been discharged, do I have to advise the OR for them to adjust the amount or will the amount only be changed/adjusted if my circumstances/incomes changes before I'm discharged?

dojoman

welshladinthecity wrote: »

Thanks Debtinfo! Just thought of another couple of questions., some of the forms/SOA ask about other adults in the house. I live in a shared house with 4 others adults (not related or in a relationships with any of them). Do I have declare them when asked about number of adults I live with? Also, some of the bills I have to pay towards but they aren't in my name, like the phone. Will I have to provide the OR with old reciepts/bills/evidence for for things like the phone, TV license, mobile, etc? Sorry don`t know the answer to this.Also, I rent from a private landlord, will I need to get him to a letter to confirm the amount of my rent is? I didn`t, the OR contacted them directly. I had already told my LL that I was going BR just in cast this is what happened.

Hope this helps a little?

debtinfo

Just say it is a shared tennancy, The OR may write to the to the landlord for a copy of the tennancy

The OR may ask for bills but only usually for unreasonable bills or if they suspect anything is up

You only need to give them whatever statements you have

If you're in an IPA you need to keep the OR updated until it is complete

RAS

Council tax? or are you lodging?

utility costs?