.. Just about to start the process ...

bacil_uk

Hi all ....

I have gone through this forum and have to start with BIIIIGGGG thanks to Everyone for great job you do.

I am about to start BR process, but before i do i just want to get some outside opinion. I have talked to CCCS and NationalDebt line as well as Churchwood financial, so i got response from both charities and paid financial services angle, but would like to have some views from people who have gone through.

My situation is as follows. I am foreign national (czech) living in uk for last 12 years. In last 3 years my life turned upside down, i have separated from my wife and she is now living with our son back in Czech Rep. That was major change. I am still employed with same employer for last 7 yrs. (i think :-) ). I earn good salary (2.5k ppm after tax). I have bought house on the peak of the market (October 07 about 2 month before separation). So with turn of the market there is likely to be negative equity there. i also took 5k secured loan to refurbish etc. Both loan and mortgage are in my name only. I also had 6k motorbike loan that i defaulted on after accident with uninsured driver (her fault, but i never got paid).

Then separation came and i had to pay, legal and advisory fees (to czech court) as well as maintenance and wife's legal expenses as it is law back there. There is still open divorce settlement, because we are not divorced as yet. These all paid i missed on cc payments and som bills. All and all i have had until about two weeks ago unsecured debts of 7k and secured of 185k and i managed to pay all of them, unsecured through DMP with churchwood (and they were really helpfull) and secured directly. Never missed single payment.

In the interim i have also taken several of those payday loans to help me cashflow and it didnt help just made thing worst TBH.

About two weeks ago i have lost long court battle with Austrian bank and have been ordered to pay back 15k immediately. And that was what pushed me towards BR.

I am more that willing to surrender the house to creditors, since i dont live there anyway (renting it out to help me cope).

I am paying about 500 pounds to my wife (fees and maintenance) and also need about 500 a month for my business travels (i get sent all around globe) these and rent/mortgage are my major outgoings.

Any reaction would be greatly appreciated, just need to hear someone else's view.

tech2_2

Hi There

Go to the link below and fill it all in and then post it bcak on here as it will make more sense then people who know what they are on about will pick and ask Q's about it!

Tech 2

bacil_uk

Here it is... there is several creditors under DMP i did not list them separately and i believe it is slightly less since i have been paying towards it for last two years, but it is the sum i have started with

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 500
Total monthly income.................... 3000

Monthly Expense Details
Mortgage................................ 532
Secured/HP loan repayments.............. 218
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 218
Electricity............................. 96
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 18
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 500
Childcare/nursery....................... 0
Other child related expenses............ 500
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 72
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.................. 3056


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 180000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 168000...(532)......0
Secured Debt.................. 5000.....(218)......0
Total secured & HP debts...... 173000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
DMP (churchwood)...............7200......150.......0
Austrian bank..................14500.....238.......0
Total unsecured debts..........21700.....388.......-


Monthly Budget Summary
Total monthly income.................... 3,000
Expenses (including HP & secured debts). 3,056
Available for debt repayments........... -56
Monthly UNsecured debt repayments....... 388
Amount short for making debt repayments. -444

Personal Balance Sheet Summary
Total assets (things you own)........... 180,000
Total HP & Secured debt................. -173,000
Total Unsecured debt.................... -21,700
Net Assets.............................. -14,700

Created using the SOA calculator at Make sense of cards
Reproduced on Moneysavingexpert with permission, using other browser. < Link doesn't work for i am new user.

ontheroad_2

Sorry I'm maybe missing something - why have you got a figure for mortgage and a figure for rent?

Your SOA currently shows you are spending more than your income, you'll have to change that before you apply for bankruptcy, as bankruptcy would not help you (as you still can't meet your basic bills).

bacil_uk

ontheroad wrote: »

Sorry I'm maybe missing something - why have you got a figure for mortgage and a figure for rent?

Your SOA currently shows you are spending more than your income, you'll have to change that before you apply for bankruptcy, as bankruptcy would not help you (as you still can't meet your basic bills).

Yup, i know and that's the reason why i am considering BR i am spending more than i should. Because i pay mortgage, but dont live in property and renting somewhere else. Income from renting that property is listed as additional income.

ani_26

ontheroad wrote: »

Sorry I'm maybe missing something - why have you got a figure for mortgage and a figure for rent?

Your SOA currently shows you are spending more than your income, you'll have to change that before you apply for bankruptcy, as bankruptcy would not help you (as you still can't meet your basic bills).

Ermmmm maybe this will help

https://forums.moneysavingexpert.com/discussion/2781388

bacil_uk

Nohope wrote: »

Ermmmm maybe this will help

https://forums.moneysavingexpert.com/discussion/2781388

Yup my thread

Sunnylooloo

Just a little comment £300 for groceries is quite high for one person. Your council tax is also quite high - are you paying this over 10 or 12 months.

Obv if you did decide to go the BR route you would only be paying either rent or mortage not both - so that would also free up some cash.

You have one figure for insurance being building only - it would be advisable to have contents too - and I think if you shop around you can get much cheaper than that.

Sorry I am not all that great on SOA's but those are my initial thoughts

good luck!

lottodreams

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 2500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2500
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 181
Electricity............................. 96
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 65
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 240
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 500
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 22
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Child Maintenance Court Order........... 500
Total monthly expenses.................. 2353

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including HP & secured debts). 2,274
Available for debt repayments........... 226

I think after Br your SOA would look something like this You would likely lose any equity in your property I don't know how the OR would look upon your 'travel' I know this After you are BR you are barred from being a Director of a Limited Company unless you apply to court for special permission This lasts until you are discharged from your BR

BTW I am not advocating Br in your case

Lotty

bacil_uk

Sunnylooloo wrote: »

Just a little comment £300 for groceries is quite high for one person. Your council tax is also quite high - are you paying this over 10 or 12 months.

Obv if you did decide to go the BR route you would only be paying either rent or mortage not both - so that would also free up some cash.

You have one figure for insurance being building only - it would be advisable to have contents too - and I think if you shop around you can get much cheaper than that.

Sorry I am not all that great on SOA's but those are my initial thoughts

good luck!

Thanks, you are right ... my council tax i 10 month ... 300 groceries are high, but also taking in food abroad ...

i am looking in to content insurance, but havent signed anything, i had to have building insurance as landlord , but obviously that will go as well hence reating surplus of circa 400 pounds.

As i said previously i am willing to surrender that house so any equity can be used to pay my debts. I am not sure about house prices in that area but about year ago house had about 10k of equity.

bacil_uk

lottodreams wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 2500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2500
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 218
Electricity............................. 96
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 65
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 240
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 500
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 72
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Child Maintenance Court Order........... 500
Total monthly expenses.................. 2353

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including HP & secured debts). 2,353
Available for debt repayments........... 147

I think after Br your SOA would look something like this You would likely lose any equity in your property I don't know how the OR would look upon your 'travel' I know this After you are BR you are barred from being a Director of a Limited Company unless you apply to court for special permission This lasts until you are discharged from your BR

Thanks, i am not worried about directorship ... i have resigned today ... so it will be registered with companies house next week or so, as well as my share in company being transfered to my business partner. ...

that SOA looks exactly how would i want it ...