Facing Bankruptcy

DotandDot

Hi Everyone
My first post was in the dfw section but i have been reading the forum with interest for a while now. I have completed the debt remedy form on the cccs website and it is suggesting Bankruptcy. I then contacted cccs by phone and spoke to an advisor who is sending me some forms to fill in prior to them ringing me next week with a telephone appointment.
I know our situation is very serious, at the moment we are up to date with all of our bills and the mortgage but i know this cant continue.
I am self employed (Sole trader) and work is getting harder to find on a weekly basis.
My wife has a good job, civil servant so not sure if this will affect her job,
I am a bit unsure of the best way to go, IVA or BR
Do we both apply as i dont see the point of going through all of this stress for one of us to still have debts.
We we lose our house etc
I understand we will have to open a new bank account and our credit rating will suffer, will this affect my business account and credit rate?

I have enclosed our soa

Your thoughts as ever are appreciated

Absolutley stressed out now and dredding the phone call next week

DotandDot


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 1500
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2780

Monthly Expense Details
Mortgage................................ 979
Secured/HP loan repayments.............. 25
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 50
Gas..................................... 55
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 0
Mobile phone............................ 23
TV Licence.............................. 12
Satellite/Cable TV...................... 12
Internet Services....................... 7
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 330
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 17
Contents insurance...................... 0
Life assurance ......................... 39
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2368


Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 165000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 145000...(979)......5
Hire Purchase (HP) debt ...... 500......(25).......20
Total secured & HP debts...... 145500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Northern Rock loan.............21000.....274.......0
Northern Rock loan.............5000......35........0
Lloyds loan ...................255.......49.85.....0
Citi cc........................2600......59........0
MBNA cc........................6000......41........0
Halifax cc.....................880.......21........0
Barclays cc....................1445......33........0
Lloyds cc......................177.......5.........0
Lloyds cc......................1827......35........0
Total unsecured debts..........39184.....552.85....-


Monthly Budget Summary
Total monthly income.................... 2,780
Expenses (including HP & secured debts). 2,368
Available for debt repayments........... 412
Monthly UNsecured debt repayments....... 552.85
Amount short for making debt repayments. -140.85

Personal Balance Sheet Summary
Total assets (things you own)........... 165,000
Total HP & Secured debt................. -145,500
Total Unsecured debt.................... -39,184
Net Assets.............................. -19,684

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

ontheroad_2

Hi,

You're in the best place for advice and support here .

I'm a civil servant, get your wife to check the resource management site at work, it will give her some guidance on how BR affects her post (it doesn't affect mine at all, but the guidance states I must tell my manager). Mr ontheroad and I both decided to go BR at the same time (we are only financially associated by our mortgage, but each have unsecured debts over £15,000).

Whether you get to keep your house will depend on if there is significant equity in it, once the mortgage and secured debt is deducted.

Just having a quick look at your SOA, don't include your unsecured debt repayments, as they will all go into your BR and you won't be paying them. Also you could increase your groceries to £400 per month and your clothing to £100.
Your petrol/disel bill is high - if thats what you actually use each month, keep receipts as the OR might want to see proof.
You don't get an emergency fund in your SOA, but you do get a holiday contribution - £50 for a family your size should be acceptable to the OR. Haircuts are £10 per adult per month, £5 for a child. Lump your mobile phone and internet/satellite services in your landline instead. Don't you have contents insurance?

dojoman

DotandDot wrote: »

Hi Everyone
My first post was in the dfw section but i have been reading the forum with interest for a while now. I have completed the debt remedy form on the cccs website and it is suggesting Bankruptcy. I then contacted cccs by phone and spoke to an advisor who is sending me some forms to fill in prior to them ringing me next week with a telephone appointment.
I know our situation is very serious, at the moment we are up to date with all of our bills and the mortgage but i know this cant continue.
I am self employed (Sole trader) and work is getting harder to find on a weekly basis.
My wife has a good job, civil servant so not sure if this will affect her job,
I am a bit unsure of the best way to go, IVA or BR
Do we both apply as i dont see the point of going through all of this stress for one of us to still have debts.
We we lose our house etc
I understand we will have to open a new bank account and our credit rating will suffer, will this affect my business account and credit rate?

I have enclosed our soa

Your thoughts as ever are appreciated

Absolutley stressed out now and dredding the phone call next week

DotandDot


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 1500
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2780

Monthly Expense Details
Mortgage................................ 979
Secured/HP loan repayments.............. 25
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 50
Gas..................................... 55
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 0 NO LAND LINE?
Mobile phone............................ 23
TV Licence.............................. 12
Satellite/Cable TV...................... 12 NOT ALLOWED, CAN YOU GET A PHONE PACKAGE WITH THIS INCLUDED?
Internet Services....................... 7
Groceries etc. ......................... 300 £450
Clothing................................ 20 £70
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 330
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 17
Contents insurance...................... 0 WHY NO CONTENTS INS.?
Life assurance ......................... 39 OR MAY HAVE AN INTEREST IN THIS
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10 £25
Entertainment........................... 0
Holiday................................. 0 £70
Emergency fund.......................... 10 NOT ALLOWED
Total monthly expenses.................. 2368


Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 165000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 145000...(979)......5
Hire Purchase (HP) debt ...... 500......(25).......20
Total secured & HP debts...... 145500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Northern Rock loan.............21000.....274.......0
Northern Rock loan.............5000......35........0
Lloyds loan ...................255.......49.85.....0
Citi cc........................2600......59........0
MBNA cc........................6000......41........0
Halifax cc.....................880.......21........0
Barclays cc....................1445......33........0
Lloyds cc......................177.......5.........0
Lloyds cc......................1827......35........0
Total unsecured debts..........39184.....552.85....-


Monthly Budget Summary
Total monthly income.................... 2,780
Expenses (including HP & secured debts). 2,368
Available for debt repayments........... 412
Monthly UNsecured debt repayments....... 552.85
Amount short for making debt repayments. -140.85

Personal Balance Sheet Summary
Total assets (things you own)........... 165,000
Total HP & Secured debt................. -145,500
Total Unsecured debt.................... -39,184
Net Assets.............................. -19,684

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Hope this helps?

DotandDot

Thanks ontheroad for your reply.
I will get my wife to check at work regarding the BR, i think if it comes to it we may be better to both apply at the same time, do you know if there is a minimum debt you must have before BR is an option, my wife's is just over 10'000. i will check the northern rock loans as there is a possibility they may be joint.
The fuel bill is quite high as she has to travel 40 miles per day for work, also when it comes to filling in the forms i will alter the amounts for groceries etc

philnicandamy

and if you have a business banking account this may be closed as soon as they know about your bankruptcy

philnicandamy

DotandDot wrote: »

Thanks ontheroad for your reply.
I will get my wife to check at work regarding the BR, i think if it comes to it we may be better to both apply at the same time, do you know if there is a minimum debt you must have before BR is an option, my wife's is just over 10'000. i will check the northern rock loans as there is a possibility they may be joint.
The fuel bill is quite high as she has to travel 40 miles per day for work, also when it comes to filling in the forms i will alter the amounts for groceries etc

you need to as well speak to business debtline & or cccs nationaldebtline etc its a question court will ask if you did decide on bankruptcy

(the minimum debt owed would be £750)

DotandDot

Thanks dojoman
we do have a landline but it is in the business name so i haven't included it,
i'm sure the contents insurance is in with the house, but i will check this
sky is now out of contract so i can cancel if required
Life insurance is for both of us, but is to cover mortgage and debt
will scrub the emergency fund

DotandDot

Thanks philnicandamy
I spoke to cccs today and told them that i am self employed and they are sending the forms to fill in, also the telephone appointment next week is with someone who knows about business (i hope)

JCS1

You appear to have £15k equity in the property, so the OR will be interested in this if you do decide on BR.

Please take advise from one or more of the free debt charities, and go over all your options.