Bankruptcy advice please?

FezzyFox

Ok, long story short, i moved from essex to slough out of my parents home and in with my partner. I changed jobs but didnt pass my probationary period and hence, lost the job at the end of february

ive been unable to find another job and i am not being chased for money as of yet, but next month it will all begin

I currently owe £9,300 to natwest for a loan, £400 Overdraft (steps down £100 each month) and £300 to o2 who have cut my phone off.

The loan was taken out to consolidate my partners debts and she was paying my back comfortably until halifax slammed her with a huuuge debt she hadnt paid. so im lumbered with the loan, my partner hasnt got a penny to her name but is scraping by.

Ive been advised to declare myself bankrupt, but im worried as to how this will affect my partner ?

She has the tenancy agreement, and i have none of my own assets in our flat, everything is hers and i moved into it. all i have is my car (which cost £200, a rover )


How will the courts see this ? Id rather go for bankruptcy, i am only 19 and dont want to be paying a debt management company for the rest of my life. but the only issue i have is, i cant afford to pay for bankruptcy. i have 51p credit left in my bank account but next month, all my bills will go out and leave me deep, deep in debt.

any help and advice would be greatly appreciated, i am actually really scared about this

Oh, also. If i go bankrupt and it all goes through OK and i start working again in the future, how will this affect me?

miss_spooky

Hi & welcome,

Relax and don’t panic. First rule of thumb! Get a cuppa & have a good read.

Your first port of call will be to have a look thru this sticky.

http://forums.moneysavingexpert.com/...html?t=1056083

It's at the front of the board. You will also need to get advice from one of the FREE debt charities –

National Debtline - http://www.nationaldebtline.co.uk/ - if you ring them they will go through everything for you then you can come back here for help thru your br journey. Be prepared to hold as they are busy.
CCCS - http://www.cccs.co.uk/ - you can do an online debt remedy and request a ring back. They will go through most stuff but may make an appt for a later date.
CAB - http://www.citizensadvice.org.uk/ - a drop in where you'll first see an advisor who will make an appt with a money advisor. Most CAB are booking approx 8 week ahead as really busy. I'd say NDL is the best bet for a quicker answer.

You could post up a Statement of Affairs so we can get an idea - you will have to go thru this with charities anyway.

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

When completed, press the MSE button to format it for here. A new window will open, copy & past into yr thread.

I've also added some notes for you.

Good luck.

FezzyFox wrote: »

Ok, long story short, i moved from essex to slough out of my parents home and in with my partner. I changed jobs but didnt pass my probationary period and hence, lost the job at the end of february

ive been unable to find another job and i am not being chased for money as of yet, but next month it will all begin

I currently owe £9,300 to natwest for a loan, £400 Overdraft (steps down £100 each month) and £300 to o2 who have cut my phone off.

The loan was taken out to consolidate my partners debts and she was paying my back comfortably until halifax slammed her with a huuuge debt she hadnt paid. so im lumbered with the loan, my partner hasnt got a penny to her name but is scraping by.

Ive been advised to declare myself bankrupt, but im worried as to how this will affect my partner ? BR is a personal thing and will nto affect her in anyway. The only affect will be if you have any joint debts - they will then fall to the non br person to repay.

She has the tenancy agreement, and i have none of my own assets in our flat, everything is hers and i moved into it. all i have is my car (which cost £200, a rover ) As it's not a joint tenancy I think it will be fine - hopefully someone will be able to clarify that later for you.

How will the courts see this ? Id rather go for bankruptcy, i am only 19 and dont want to be paying a debt management company for the rest of my life. but the only issue i have is, i cant afford to pay for bankruptcy. i have 51p credit left in my bank account but next month, all my bills will go out and leave me deep, deep in debt. As your debt is under £15K you could do a debt relief order (DRO), have a look at the stickies at the top of the forum. The criteria is a little stricter so it will need looking into, but it only costs £90.00

any help and advice would be greatly appreciated, i am actually really scared about this

Oh, also. If i go bankrupt and it all goes through OK and i start working again in the future, how will this affect me? With BR & DRO after your essential living costs have been taken intio consideration, you are allowed a surplus of £99 for BR & £50 for DRO. Any extra money after the £99 for BR is paid to the Official Receiver (OR) at a % starting from 50% upto 70%. With a DRO it can be revoked if your surplus is over £50 so could be a stumbling block if you are looking for work. BUT the essential living costs for DRO are more flexible than that of BR.

If you speak to National debt line or go onto their website, you can download the fact sheets for both then compare.

But don't be affraid to ask away here...

FezzyFox

Thanks for the advice there Spooky

Heres the breakdown...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 240
Partners monthly income after tax....... 0
Benefits................................ 20
Other income............................ 0
Total monthly income.................... 260

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 91
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 426


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................9300......258.......0
o2 Contract....................330.......330.......0
Total unsecured debts..........9630......588.......-


Monthly Budget Summary
Total monthly income.................... 260
Expenses (including HP & secured debts). 426
Available for debt repayments........... -166
Monthly UNsecured debt repayments....... 588
Amount short for making debt repayments. -754

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,630
Net Assets.............................. -9,430

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Simon11

£45 for phone contracts? Im guessing one for each?

Why not go for a cheaper contract? I'm on Sim Only £10 a month with Virgin with unlimited text and 200 call times. Its plenty!

miss_spooky

FezzyFox wrote: »

Thanks for the advice there Spooky

Heres the breakdown...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 240
Partners monthly income after tax....... 0
Benefits................................ 20
Other income............................ 0
Total monthly income.................... 260

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0 Is this included in rent?
Electricity............................. 0 Ditto
Gas..................................... 0 Ditto
Oil..................................... 0
Water rates............................. 0 Ditto
Telephone (land line)................... 0 Ditto
Mobile phone............................ 45 To high - esp as you have no groceries
TV Licence.............................. 0 Ditto above
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0 :eek:
Clothing................................ 0 20
Petrol/diesel........................... 80
Road tax................................ 0 Need to put something here
Car Insurance........................... 91
Car maintenance (including MOT)......... 0 Need to put something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 426


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................9300......258.......0
o2 Contract....................330.......330.......0
Total unsecured debts..........9630......588.......-


Monthly Budget Summary
Total monthly income.................... 260
Expenses (including HP & secured debts). 426
Available for debt repayments........... -166
Monthly UNsecured debt repayments....... 588
Amount short for making debt repayments. -754

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,630
Net Assets.............................. -9,430

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi ya,

I've added some notes so I'll comment - You will have to put your partners contribution to the household (NOT full salary). Then show the utilities in full as her contribution should then show as breaking even on your SOA. The reason being is that at the mo you do not have enough to live on AFTER BR and a judge could refuse the BR until your circumstances change giving you a surplus so that you can show that you are breaking even. If you are still insolvent AFTER BR then it will most certainly be a no go.

You have put nothing down for car mtce, tax,mot etc this will have to be budgeted for.

As mentioned in a earlier post the mobile is too high. The OR will probably put it in your BR.

It will take a few go's to get it right, but don't worry this is the worst bit.

We'll help you get it right.