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Please help with SOA

Hello, would really appreciate some advice please.

I have my court date booked for next week. I have recently completed the 7.1 outgoings section on the form. However, I just have a few questions.

The income shown on my most recent payslip is £994 take home, however, I was advised by CAB to stop my pension as this would be seen as a kind of savings, and inappropriate when claiming bankruptcy. So I will be putting an income of £1069 as the pension each month equated to £75.

So my income = £1069

6.6 It states whether you receive any benefits, and how much do you receive. Now my partner completed forms for tax credits (child tax and working tax bsaed on both our circumstances as we recently had a baby). She has just finished maternity leave and will not be returning to work, and we have also recently been issued housing benefit because I am on a low income. The benefits equate to (including child benefit) £732.37. This makes a total income of £1801.37.

The section 6.7 "How much do other members of your household contribute.." we have left blank, as already mentioned my partner is not returning to work at this current time. However, all the benefits are paid into her account only and she does pay the council tax £130, Gas/Electric £80 and landline/internet £28 per month. She also contributes to housekeeping on average £150 per month. Of course though, all of those payments are from benefits she receives in her account as she does not receive an income now. Her contributions equate to £388.

Now following a recent trip to CAB they have advised her to include her student overdraft and debts, and glasses in the section titled "other essential payments..", however, she has posted on here and being advised this is not a good idea.

What our concerns are, if we do not include her outgoings in some of the essential payments, it will show a surplus from the total income (that includes the benefits that are paid into her account). This will be a false surplus as the figure will not take into account all other payments that she has to make.

This is my current Outgoings that we agreed with CAB (It is only me going bankrupt)

Rent £600
Housekeeping £433
Gas, Elec £80
Water £37.60
Telephone charges £65 (mine and my partner's mobile contracts combined - mine 45, partner 20)
Travelling to and from work £200 (includes tax, insurance, maintenance, petrol).
Clothing £40
Maintenance payments fines £0
Council tax £130
Other essential payments £165

(made up of:)
TV Licence £13
Partner's overdraft £40
Perscriptions £14
Partner's debts £50
Dentist/glasses £20 (my partner wears glasses)
Internet/landline £28

Total income £1069
Benefits £732.37
Total income £1801.37
After outgoings £50.77 remaining (this includes my partner's payments). If we don't include her payments in the essential items box then the surplus shown will be £151.77.

Total debts equate to £26,631.25

It is only myself going bankrupt as we do not hold any joint accounts/credit cards etc and I accrued the debt before we met.

I hope you can offer any further advice regarding what is the best way of completing the Present Income and Outgoings section.

The other way I was considering to show income and outgoings so we can avoid including any of her outgoings on the form, is if we state half the benefits as they are based on being a couple, therefore, should they be split and we just include a figure to show her contributions in the contributions box?

Please help, as I am getting very concerned and I am running out of time!
«1

Comments

  • dojoman
    dojoman Posts: 12,027 Forumite
    Repost using this link and we may be able to help you.

    http://www.makesenseofcards.com/soacalc.html
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • colin8
    colin8 Posts: 16 Forumite
    In reply to your last message I have completed an SOA, plesae see below:

    Statement of Affairs

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

    Number of cars owned.................... 2 (one is my partner's car, each worth only £500)

    Monthly Income Details
    Monthly income after tax................ 1069
    Partners monthly income after tax....... 0
    Benefits................................ 732.37
    Other income............................ 0
    Total monthly income.................... 1801.37

    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 600
    Management charge (leasehold property).. 0
    Council tax............................. 130
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 37.6
    Telephone (land line)................... 28 (this includes internet)
    Mobile phone............................ 65 (this includes my partner's £20 contract and my own contract at £45)
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 433
    Clothing................................ 40
    Petrol/diesel........................... 130
    Road tax................................ 15.83
    Car Insurance........................... 20.83
    Car maintenance (including MOT)......... 37.5
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 23
    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
    (Unnamed monthly expense)............... 0
    Total monthly expenses.................. 1663.76

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

    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly...APR
    cc 1...........................2561.02...1.........0
    Loan-negative equit.....14393.9...100.......0 (shortfall after selling house)
    Loan 2 .......................2082.63...1.........0
    cc 5...........................1235.82....5.........0
    cc 4...........................325.96.....5.68......0
    Bank overdraft 3...........884.44.....1..........0
    cc 3...........................2134.19....1.........0
    cc 2...........................741.22.....12........0
    Bank overdraft 2...........1843.98...1.........0
    Bank overdraft...............428.09....1.........0
    Total unsecured debts...26631.25..128.68....

    Monthly Budget Summary[/b]
    Total monthly income.................... 1,801.37
    Expenses (including HP & secured debts). 1,663.76
    Available for debt repayments........... 137.61
    Monthly UNsecured debt repayments....... 128.68
    Amount left after debt repayments....... 8.93

    Personal Balance Sheet Summary
    Total assets (things you own)........... 500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -26,631.25
    Net Assets.............................. -26,131.25


    As you will see in most cases, I am currently only paying a token payment of a £1 which I set up for the majority of my creditors. Of course, it is unlikely that I will be able to continue to pay £1 per month for very much longer.

    Any advice appreciated about my SOA, and please refer to my first post regarding my concerns about not showing my partner's expenses in some cases, as the outgoings (7.1) on the form is set out differently to the form we have completed above, ie. does not refer to current repayments.
  • dojoman
    dojoman Posts: 12,027 Forumite
    colin8 wrote: »
    In reply to your last message I have completed an SOA, plesae see below:

    Statement of Affairs

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

    Number of cars owned.................... 2 (one is my partner's car, each worth only £500)

    Monthly Income Details
    Monthly income after tax................ 1069
    Partners monthly income after tax....... 0
    Benefits................................ 732.37
    Other income............................ 0
    Total monthly income.................... 1801.37

    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 600
    Management charge (leasehold property).. 0
    Council tax............................. 130
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 37.6
    Telephone (land line)................... 28 (this includes internet)
    Mobile phone............................ 65 (this includes my partner's £20 contract and my own contract at £45) PUT YOUR OWN MOBILE COSTS WITH THE LL, USUALLY A TOTAL OF £60 IS ALLOWED (YOU CANNOT INCLUDE YOUR PARTNERS)
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 433
    Clothing................................ 40
    Petrol/diesel........................... 130
    Road tax................................ 15.83
    Car Insurance........................... 20.83
    Car maintenance (including MOT)......... 37.5
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 23
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 HAVE YOU NO CONTENTS INS..
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 0 (PUT £60 DOWN)
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    Total monthly expenses.................. 1663.76

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

    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly...APR
    cc 1...........................2561.02...1.........0
    Loan-negative equit.....14393.9...100.......0 (shortfall after selling house)
    Loan 2 .......................2082.63...1.........0
    cc 5...........................1235.82....5.........0
    cc 4...........................325.96.....5.68......0
    Bank overdraft 3...........884.44.....1..........0
    cc 3...........................2134.19....1.........0
    cc 2...........................741.22.....12........0
    Bank overdraft 2...........1843.98...1.........0
    Bank overdraft...............428.09....1.........0
    Total unsecured debts...26631.25..128.68....

    Monthly Budget Summary[/b]
    Total monthly income.................... 1,801.37
    Expenses (including HP & secured debts). 1,663.76
    Available for debt repayments........... 137.61
    Monthly UNsecured debt repayments....... 128.68
    Amount left after debt repayments....... 8.93

    Personal Balance Sheet Summary
    Total assets (things you own)........... 500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -26,631.25
    Net Assets.............................. -26,131.25


    As you will see in most cases, I am currently only paying a token payment of a £1 which I set up for the majority of my creditors. Of course, it is unlikely that I will be able to continue to pay £1 per month for very much longer.

    Any advice appreciated about my SOA, and please refer to my first post regarding my concerns about not showing my partner's expenses in some cases, as the outgoings (7.1) on the form is set out differently to the form we have completed above, ie. does not refer to current repayments.



    Hope this helps, also round off all your figures to the nearest pound, do not put any pence figures down.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • confused76
    confused76 Posts: 12,680 Forumite
    Part of the Furniture Combo Breaker
    hi there
    i'm just wondering about the CAB advice to stop pension contributions, i was allowed to continue paying 3% into mine?
    i believe, as long as the contributions aren't excessive, then it is ok to continue paying into a pension?
    hopefully someone with more experience will see this and comment
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    quite right confused
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • confused76
    confused76 Posts: 12,680 Forumite
    Part of the Furniture Combo Breaker
    thanks debtinfo i was hoping you'd see this :)
  • colin8
    colin8 Posts: 16 Forumite
    edited 30 May 2010 at 9:08PM
    Dojoman; Thank you for your advice. At the present time we don't have contents insurance. I sold my house in February to help alleviate some of my debts and currently renting. I haven't as yet managed to sort out contents insurance at the new property, as I had cancelled the previous direct debit as I couldn't afford to pay this. Would it be a problem for me now to take out contents insurance a few days prior to going bankrupt?

    Confused 76 / Debtinfo ; The pension is a local government work's pension (optional) as I work at a college, therefore, it is a pension where you pay a percentage and the government pay a percentage. The monthly amount equated to £75 and CAB advised to cancel the pension at this current time as they may see this as a savings and feel inappropriate? I started my job in January 2010 and so had only paid into this from that date.
  • confused76
    confused76 Posts: 12,680 Forumite
    Part of the Furniture Combo Breaker
    mine is a works one where the employer match too. is £75 a standard contribution (eg you're not paying extra?) you're paying slightly more than me but i dropped down from 5 to 3% because i couldn't afford 5% post br

    i think if you can afford it post br then you are well within your rights to continue with it. debtinfo do you agree?
  • miss_spooky
    miss_spooky Posts: 742 Forumite
    Part of the Furniture Combo Breaker
    colin8 wrote: »
    In reply to your last message I have completed an SOA, plesae see below:

    Statement of Affairs

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

    Number of cars owned.................... 2 (one is my partner's car, each worth only £500)

    Monthly Income Details
    Monthly income after tax................ 1069
    Partners monthly income after tax....... 0
    Benefits................................ 732.37
    Other income............................ 0
    Total monthly income.................... 1801.37

    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 600
    Management charge (leasehold property).. 0
    Council tax............................. 130
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 37.6
    Telephone (land line)................... 28 (this includes internet)
    Mobile phone............................ 65 (this includes my partner's £20 contract and my own contract at £45)
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 433 450
    Clothing................................ 40 60
    Petrol/diesel........................... 130
    Road tax................................ 15.83
    Car Insurance........................... 20.83
    Car maintenance (including MOT)......... 37.5
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 23
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 20 I'd put this in as you need to cater for it after BR.
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10 20
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    Total monthly expenses.................. 1663.76

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

    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly...APR
    cc 1...........................2561.02...1.........0
    Loan-negative equit.....14393.9...100.......0 (shortfall after selling house)
    Loan 2 .......................2082.63...1.........0
    cc 5...........................1235.82....5.........0
    cc 4...........................325.96.....5.68......0
    Bank overdraft 3...........884.44.....1..........0
    cc 3...........................2134.19....1.........0
    cc 2...........................741.22.....12........0
    Bank overdraft 2...........1843.98...1.........0
    Bank overdraft...............428.09....1.........0
    Total unsecured debts...26631.25..128.68....

    Monthly Budget Summary[/b]
    Total monthly income.................... 1,801.37
    Expenses (including HP & secured debts). 1,663.76
    Available for debt repayments........... 137.61
    Monthly UNsecured debt repayments....... 128.68
    Amount left after debt repayments....... 8.93

    Personal Balance Sheet Summary
    Total assets (things you own)........... 500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -26,631.25
    Net Assets.............................. -26,131.25


    As you will see in most cases, I am currently only paying a token payment of a £1 which I set up for the majority of my creditors. Of course, it is unlikely that I will be able to continue to pay £1 per month for very much longer.

    Any advice appreciated about my SOA, and please refer to my first post regarding my concerns about not showing my partner's expenses in some cases, as the outgoings (7.1) on the form is set out differently to the form we have completed above, ie. does not refer to current repayments.

    HI Colin8,

    As Dojoman has said, round up your figures to the nearest £.

    With regards to your income I think you can do one of two things. The easiest is probably this:

    I would calculate what your partners outgoings & debt repayments are then deduct this from the total benefits. So if her total outgoings for her own expenses is £300.00pm, then only put down £432 down for benefits.

    The second is to put your full household outgoings including her debt repayments with a note at the back explaining what you have done. As you partner has no income of her own, you are effectivly paying for her, so allowances will be accepted for this.

    Hope this helps.

    Decide which you would prefer to do, then repost SOA for a final tidy up. You don't have to add the debts in.
    BSC 289
    A life lived in fear is a life not living!
    Proud to have dealt with my debts.
  • dojoman
    dojoman Posts: 12,027 Forumite
    Hi colin8, yes I would get contents insurance (inc accidental damage) asap. If you go on the gocompare website there is a box to tick about being BR, the beauty of this is that the quotes that you are given have already taken in to account that you are BR. (I know you are not yet, but if you go with BR friendly company now, you will not have to change your insurance once you are BR) There are a lot of companies out there who will not touch BR people.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
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