Need help!! Attachment of earnings order!!

oliviasmummy

Hi Ive not been on here for a while due to recently having our 2nd baby. I don't want to go into too much detail again about how we got into this situation I already feel guilty and dont need any lectures about getting pregnant again etc. We first spoke to a debt agency and the cccs last Feb 2010 and the debt agency advised bankruptsy but cccs said we could go bankrupt but dmp/iva may be an option too. Anyway we thought that bankruptsy was the best option for us and we started saving. We then found out I was pregnant and tried our best to save to go bankrupt before our baby was born however alot of things happened during my pregnancy and I was off work as my pelvis was splitting our boiler broke and a wall was damaged in the house and we had to redecorate all the living room and make it into one big room as the false wall that had been put up by previous owners fell apart!!. We had to purchase a pram cot etc which was a large expense and kept cutting into our savings now im on maternity we are just covering our outgoings without any debt payments and are cutting things everywhere to stay on top of mortgage payments c.tax, water and fuel etc.

I have previously written to creditors explaining our situation and was paying £1 token payments but they still bombarded me with phone calls letters etc and I was getting extremely stressed which wasnt good for me or the baby and I was advised to stop these payments, inform the companies that we were looking into options for payment and would be in contact giving them a SOA for the current period and for when I was on mat leave.

Today I have recieved a letter from the Court for application for attachment of earnings. Im so upset and just burst into tears as the letter states if I dont return the forms enclosed that I could be imprisoned for upto 14days !!. I have read through the forms and it basically asks for my income including my husbands income then it asks for expenses like mortgage etc and any arrears. The problem I have is that on the expenses section it says DO NOT include any payments made by other members of the household out of their own income. Now my husband and I have a joint account with the coop which has both wages paid in and our tax credits child benefit etc and all bills go out of it. I dont pay for this and that and he pay the rest its our money and it pays all bills so I dont know what to put on here and what not. I am only getting £450 a month in maternity pay but our mortgage is £795 so obviously my wage doesnt cover all that.

Please help I am at my wits end wondered if anyone had any advice before I phone cccs tomorrow sorry for super long post.

Thanks

fermi

This form? http://www.hmcourts-service.gov.uk/courtfinder/forms/n56_e.pdf

oliviasmummy

Yeah Fermi that's the one

oliviasmummy

Noone?!! Please I only have days to fill this in and dont know what to put.

fermi

I've a fair idea (I think), but wouldn't like to miss-advise.

I'll see if one of the CAB debt advisors who posts here can help.

Have you called National Debtline? Free on 0808 808 4000.

fatbelly

Hi

Do it in rough form first. So copy the form or something.

Know what figure you want to end up with and work backwards so that that figure is the difference between your income and expenditure. Do everything on a calendar month basis (per month). You will have to put in the full amounts for mortgage (if you ARE on the mortgage), gas, elec, water etc. The final figure to put in will be 'others living in my home give me' (how long is a piece of string?)

I would offer for you to pm me but I'm going to be away from a computer for a day or so. You could try it but I apologise in advance if I don't respond in time.

Finally tick for a suspended order, putting that you do not want your employer to know as you believe it may affect your promotion prospects.

debt_doctor

fatbelly wrote: »

Know what figure you want to end up with and work backwards

....such advice is why I so much enjoy being part of a CAB!:D

It was all good advice actually, as expected from FB.

DD

penguin83

A thing to bear in mind as well is that the expenses that are taken into account by the court when making an attachment of earnings order are very limited. You will be allowed mortgage/rent, council tax, water, travel, phone, maintenance, other court orders/fines, arrears on priority bills. A covering letter explaining your position and other expenditure can go a long way... xx

oliviasmummy

Thank you all for your replies and my apologies for my urgency on receiving them. I think I will fill it in rough first on computer then fill form out.

The main problem I have is that I'm on maternity leave so my take home is £450 a month after tax my husband gets £1120 a month after tax and we get 80 tax credits a month. But then all bills are paid out one account mortgage (£795) etc etc. My husband doesnt give me money to pay for this and that and I dont pay for this or that its our money and we pay our bills. We have no lodgers, just our 2little girls and us in the household.

I think the best thing may be to fill the forms in giving income and then all outgoings and add a covering letter explaining that I don't have bills I pay for and bills hubby pays for. Do you think this would be okay?. There is a number on the form for the court, I didn't know whether they would be able to help?

fatbelly

I think in your case you're going to have to do everything as household income/expenditure

You're going to struggle to make an offer on those figures aren't you?

If you post a statement of affairs (format for mse), others will help you.

You've had three heavyweight posters on this thread already (self not included)

I'll look in again in a couple of days.

oliviasmummy

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 450
Partners monthly income after tax....... 1120
Benefits................................ 215.04
Other income............................ 0
Total monthly income.................... 1785.04
Monthly Expense Details
Mortgage................................ 608
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 89
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 44
Telephone (land line)................... 20
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 45
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 7
Life assurance ......................... 35
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1596

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 3700
Other assets............................ 0
Total Assets............................ 88700

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 95000....(608)......7.2
Total secured & HP debts...... 95000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
card 1.........................3600......0.........0
card 2.........................2600......0.........0
card 3.........................1200......0.........0
loan with mortgage NR..........32000.....187.......0
personal loan..................10500.....0.........0
card 5.........................3500......0.........0
card 4.........................600.......0.........0
Total unsecured debts..........54000.....187.......-

Monthly Budget Summary
Total monthly income.................... 1,785.04
Expenses (including HP & secured debts). 1,596
Available for debt repayments........... 189.04
Monthly UNsecured debt repayments....... 187
Amount left after debt repayments....... 2.04
Personal Balance Sheet Summary
Total assets (things you own)........... 88,700
Total HP & Secured debt................. -95,000
Total Unsecured debt.................... -54,000
Net Assets.............................. -60,300
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

The figures on this are corroect. Mortgage is for more than house is now worth. We are making no payments other than on the loan with our mortgage as its a NR together mortgage so monthly payment is £795 I was told that it could cause more problems if we didnt pay this and as we could afford to to carry on doing so to prevent them trying to make it secured before we were to go bankrupt as we would like to keep the house.

Im on Maternity until Jan 2012 my wage will increase again to full as of Oct 2011 but when I return to work things wont be much different to what they are now with extra travel costs and childcare.