Thinking about BR

bluerhino6

Hi... I have posted on here a few times regarding my debt, I now feel the time has come.

I currently have 27k worth of credit card debt which I struggle to pay, I write to each company every month when my statement comes in and explain my situation and send them a £5 cheque which is always cashed by every company I owe. They don't send me letters, all fee's have been removed, so I basically have statred my own DMP.

OK your all going to ask for an SOA... I basically earn £1500 per month, I pay £100 in Council tax, £800 in rent, and £250 in CSA... so that leaves £350 for my Gas, Electricty, water, mobile, internet, travel expenses, food etc! So basically I am left with nothing at the end of the month.

I am recently divorced (18 months ago) and used a lot of the £27k to start up a new life, buy funiture for my rented property, pay solicitors bills, pay off some gambling debts and then the rest has been to live off over the last 2 years when i havnt been earning enough.

I have no car, no house, no savings, I don't have anything that could be considered as an asset. Is BR the right option for me?

I am considering moving in with a family member to cut my bills and rent... Is this a good move?

Do I have to prove where I have spent every penny?

If I file for BR can it be refused?

Sunnylooloo

Hi there


I would firstly make sure you seek advice from one of the debt charities (from my experience I found National Debtline and CAB brilliant)

http://www.citizensadvice.org.uk/index/getadvice.htm
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/


Also please don’t forget to read the essential information in the sticky by Fermi.

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


It maybe an idea to post your SOA in this format
http://www.makesenseofcards.co.uk/soacalc.html


Good Luck

bluerhino6

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................ 1500
Partners monthly income after tax....... 0
Benefits................................ 68
Other income............................ 0
Total monthly income.................... 1568
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 43
Gas..................................... 17
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 15
Mobile phone............................ 35
TV Licence.............................. 11
Satellite/Cable TV...................... 50
Internet Services....................... 15
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 256
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 11
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1576

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
Tesco Loan.....................7500......0.........0
Tesco CC.......................4000......0.........0
Barclaycard CC.................5000......0.........0
Argos..........................1000......0.........0
Virgin MBNA CC.................4000......0.........0
EGG CC.........................4000......0.........0
Santander CC...................2000......0.........0
Total unsecured debts..........27500.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,568
Expenses (including HP & secured debts). 1,576
Available for debt repayments........... -8
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -8
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -27,500
Net Assets.............................. -27,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

bluerhino6

I have sought advice from the CCCS in the past, I took their advice with regards to setting up a DMP and trying to manage my debts rather than go BR.

Sunnylooloo

It really has to be you decision which way you decide to go.

do you think you will move in with a relative? again could be a good move to save money but would it be right for you? do you get on ok?

Don't forget you need your fees to go BR

Just a few comments on your SOA for BR (I am not great at these so someone else will add more) you will not be allowed sky this has to come out of your surplus, Internet is only allowed if needed for work/school, is your mobile a contract or PAYG? add this to your landline for one figure.

good luck

bluerhino6

Yes moving in with a relative is a short term option. Only for a few months though. It would save me money but would that then be taken by the OR?

I have to use my internet for my job, all report writing and submitions are done online.

Mobile is contract.

Sky is something which I am considering giving up.

If I move in with a family member this will be in the north of england and I live in the south because of work. So this means giving up my job and looking for work in the north.

Would I be in a better position with regards to BR if I wasnt working?

Sunnylooloo

Wooh I am really sorry I really cannot give any adivce or advocate giving up work to be in a better position..........to go BR#

I've copied this form a post of Dojo's which explains what the OR can take out of your surplus, I would strongly advise that you do get some advice from CAB or one of the other debt charities about this

The percentage the OR can take for an IPA depends upon the excess:

Between £100 and £249 = 50%
Between £250 and £349 = 60%
Between £350 and £499 = 66%
£500 or more = 70%

andyf1980

Just another thing I was thinking- do you see your kids regularly. Would this be affected if you were to move?

I too took advice from CCCS and whilst they were great I decided to go the br route.

bluerhino6

I currently see my son once a week and he stays with me 2 times a month... If i move to the north I will see him every other weekend and stay at my parents.

andyf1980

Cool. I was just thinking it might be more difficult if you moved. There's so much to think about when deciding which way to go.

benjiangel

My advice would be - JUST DO IT!! The sooner you draw a line under it, the quicker you can move on. I tried to arrange an IVA but was vetoed by 1 creditor (HSBC - surprise, surprise, who were the majority creditor) so had little choice but to make myself BR. As long as you can afford the fees (close to £600), it is unlikely that it would be refused, especially with your lack of assets.

4 years on and life is ok - living on cash and prepaid cards is pretty easy, and I am not far from a 'clean slate' (6 years later) but I would DEF recommend making sure your credit file is cleaned up & accurately reflects that date of your BR (if you go down that route) - there is a good thread elsewhere on forum on how to do this.