SOA - IVA or bankruptcy?? Help??

kezxx22

Hi there peeps

OK here goes...

Barclay loan - £400 per month (approx £19,500 owed)
Egg loan - £123 per month (approx £1, 500 owed)
Next account - £45 per month (approx £500 owed)
Argos card - £10 per month (approx £400 owed)
Egg card - £60 per month (approx £1100 owed)
Barclaycard - £50 per month (approx £1500 owed)

Total debt approx - £23,000

Monthly payments - £688 per month
Rent - £400 per month
Council Tax - £80 per month
Elec etc - £90 per month

TOTAL OUTGOINGS -£1258

Income £800 - £950 per month
Tax credits - £400 per month (-childcare payments)
Child benefit - £120 per month

TOTAL INCOME - approx £1400

I am going to struggle paying this so do you think I should do an IVA or bankruptcy? I am a supply teacher so hard to work out my income but dont get paid in the hols!

Any help would be great x

Sunnylooloo

Hi

have you spoken to one of the debt charities
http://www.citizensadvice.org.uk/index/getadvice.htm
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/

to get some advice. No one can really say to you an IVA or BR that has to be down to you, and you need to receive the best advice.

you could post your SOA so we could have a look and give some advice on where you can save some money http://www.makesenseofcards.co.uk/soacalc.html

I take it you are not behind in any of you payments as it stands?

LL

Fribourg

Declaring yourself bankrupt will cost you 600+ and should be paid cash to to court, so not an easy thing to do if you don't have the cash

winner12

Hi as previously said you need some good advice but please dont pay for it there are charities as stated above there are more options open to you and they will help find the right one that suits you too i was a little blinkered in the beginning and sometimes i still need advice but i dont let them get to me so much now and this forum is great for support
Good Luck

kezxx22

Thanks guys.

No I am not behind with any of my payments...yet! But soon to be in my own with my children (moving out due to relationship breakdown) so am going to struggle & am stressed enough with all this going on.

:mad:

Sunnylooloo

Hi

as I said have a chat to one of the charities, you may find it easier if you can to get an appointment with CAB and sit down face to face and they will tell you the pros and cons of everything. I also found the National Debtline really good - might take some time to get through but hang in there.

As I said we really can't acutally say to you which way to go..... and you also could think about a Debt Management Plan. All these options will be discussed with you.

The main thing is try not to worry to much (easier said than done i know) there is help out there and there will be a solution for you.

If you go over to the Bankruptcy board you will find a "sticky" which gives you a lot of info about BR

https://forums.moneysavingexpert.com/discussion/1056083


LL

LL

brokeinbristol

£600 BR fees can be saved easily as you won't be paying your debts anymore. If BR is the way you decide, stop paying all of your creditors and use the money to save up for BR

kezxx22

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 900
Partners monthly income after tax....... 0
Benefits................................ 1130
Other income............................ 40
Total monthly income.................... 2070
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 10
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 8
Groceries etc. ......................... 80
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 7
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600
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................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1370

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
loan...........................19850.....400.......0
loan...........................1500......123.......0
card...........................1100......35........0
next...........................550.......40........0
argos..........................500.......10........0
card...........................1500......35........0
Total unsecured debts..........25000.....643.......-

Monthly Budget Summary
Total monthly income.................... 2,070
Expenses (including HP & secured debts). 1,370
Available for debt repayments........... 700
Monthly UNsecured debt repayments....... 643
Amount left after debt repayments....... 57
Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -25,000
Net Assets.............................. -24,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

brokeinbristol

kezxx22 wrote: »

Thanks guys.

No I am not behind with any of my payments...yet! But soon to be in my own with my children (moving out due to relationship breakdown) so am going to struggle & am stressed enough with all this going on.

:mad:

If you do choose BR (not sure if the same down the IVA route) in order for the banks and the court to take you seriously you need to stop making payments to your creditors. Read up on the pros & cons of both BR & IVA & do what's right for you. personally BR was the best thing I ever did, the biggest weight lifted off of my shoulders you would not believe. I'm by no means saying it's easy, but a real fresh start, so glad I didn't go down the IVA route myself (but that's just me).

Sunnylooloo

Kez

thanks for posting the SOA so we can see. I'm a bit unsure how to comment -as if your SOA is up so we can help you save money or if you want advice for what you would be allowed to claim from if you did decide to go down the BR route?

At the moment nothing seems to jump out that you are over spending on - your grocery bill is very low. I have also noticed you have no contents insurance?

If you do want comments regarding what you would be allowed for BR I would post over there to get some comments.

As I have said do not make any rash decisions until you have spoken to one of the debt charities

victoria270385

hi,

£600 childcare what is that for? i dont have kids so i have no idea what childminders cost etc. What are the benefits you get? again i have no idea what benefits people get. If you partner is moving out would you get any help from him for the kids or are they not his?