Looking for advice

limboland

Hi there, im looking for advice please.

About 4 years ago now my family and I had our house repossed, we surrended our car which was on hp. We had a credit card and some other debts.

We tried everything we could to keep our house, we tried the cab and debt councillors, but to no avail. We asked for a payment holiday on our house but they wouldnt accept anything from us. To cut along story short, we were offered a new life far away from where we lived. After a deep discussion we took the move on, leaving our debts behind! Hubby got a new job and stupidly we tried to forget our passed debts. He got made redundant again (industry had been slowing down for years hence the loss of our home. We now have both got our own business' (mines a year old, hubbys is 5 months old, so both pretty new). Husband business doesnt bring in money to the household yet, and i bring in less than minimum. We are getting help from the social with houseing costs etc.

Anyway my question is, is it too late to go bankrupt. I have had nearly five years of sleepless nights, and now letters are coming through the door thick and fast again. I dont think i can be strong any longer. We are just surviving now but are happy trying to get sorted with our business and get a life back. If we went bankrupt im assuming our business would go aswell!

What should i do, i really need some advice, i know we have been nieve in hoping the debt would just disapear. I dont need judgement i do that enough myself, im just looking at some sort of life line here, without loosing everything again for the second time.

Thanks for reading.

Oh p.s house was sold at auction and we still owe about 30k the other debts add up to about 10k.

Tixy

Hi and welcome

It wouldn't be too late to go bankrupt if that is the right option for you.
I think you would firstly need to work out a detailed statement of affairs to look at how much money you have left each month to put towards debt repayments. Once you know that then you will be in a better position to consider what option is right for you. It could be bankruptcy or it may be that there are other options you could consider.

Once you have done a statement of affairs I would post it on here for some feedback - we use this format http://www.makesenseofcards.com/soacalc.html.
Then once you have it revised you probably need to contact one of the debt charities for some advice. IMPORTANT - Where to seek professional impartial advice about your debts.

Obviously you also need to consider the impact bankruptcy could have on your businesses and your futures, plus consider if you might need to pay an IPA after bankruptcy (which is a proportion of your suplus income for the next 3years - if you have a surplus.)

limboland

Thankyou. I have the statement of affairs here

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 0
Benefits................................ 1100
Other income............................ 0
Total monthly income.................... 1500
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 160
Gas..................................... 0
Oil..................................... 350
Water rates............................. 0
Telephone (land line)................... 16
Mobile phone............................ 10
TV Licence.............................. 25
Satellite/Cable TV...................... 30
Internet Services....................... 5
Groceries etc. ......................... 500
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 21
Car Insurance........................... 50
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1772

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 30000....(0)........0
Total secured & HP debts...... 30000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2000......0.........0
catalogue......................1000......0.........0
car............................9000......0.........0
Total unsecured debts..........12000.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,772
Available for debt repayments........... -272
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -272
Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -30,000
Total Unsecured debt.................... -12,000
Net Assets.............................. -38,000
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

limboland

Tixy, thats what im concerned about the bankruptcy. losing everything all over again, but i simply cant afford to pay these guys anything..Im so confused. I dont want to hide again though i need to deal with it, my shoulders are so heavy i cant remeber what its like to not worry!

Tixy

It is really tough to go through. I'd like to say try not to worry but obviously thats not going to mean anything. I think contacting one of the charities is going to be the right option for you.

Have any of your creditors (aside from the mortgage) taken you to court or obtained CCJs against you (if you are not sure you can check your old address on the registery trust online - costs £8 per address but means they cannot trace you through your check).

Have you paid anything to the debts for the last 4years?

How likely is it your business incomes will increase soon? could either of you also get part time employed work to supplement your incomes?

limboland wrote: »

Thankyou. I have the statement of affairs here

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 0
Benefits................................ 1100
Other income............................ 0
Total monthly income.................... 1500
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 160 this seems horrendously high a month - are you paying off arrears as well?
Gas..................................... 0
Oil..................................... 350 and this looks huge as well, surely you are not sending £4200 a year on oil?
Water rates............................. 0
Telephone (land line)................... 16
Mobile phone............................ 10
TV Licence.............................. 25 how soon until this halves (after 6months on DD)
Satellite/Cable TV...................... 30 could you cancel & use freeview?
Internet Services....................... 5
Groceries etc. ......................... 500 very high for a family of 5, should be able to manage on 300, some can manage a family of your size on 200. Try to work on cutting this down.
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 21
Car Insurance........................... 50
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 25 looks high for contents only, shop around at renewal time
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30 can you go slightly longer between cuts? take the kids to somewhere cheaper or cut them yourself?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1772

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 30000....(0)........0
Total secured & HP debts...... 30000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2000......0.........0
catalogue......................1000......0.........0
car............................9000......0.........0
Total unsecured debts..........12000.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,772
Available for debt repayments........... -272
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -272
Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -30,000
Total Unsecured debt.................... -12,000
Net Assets.............................. -38,000
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

Sorry it looks like I've asked more questions that provided any responses.

[Deleted User]

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 0 (Nothing?)
Benefits................................ 1100
Total monthly income.................... 1500

Monthly Expense Details
Rent.................................... 350
Electricity............................. 160 this seems horrendously high a month - are you paying off arrears as well? (Unless you are in arrears, check that you are not in credit with the provider, and if so claim it back. Also, check comparison sites to ensure you are on the best deal - online tariffs are usually cheaper. If in arrears, when will they be paid off?)
Oil..................................... 350 and this looks huge as well, surely you are not sending £4200 a year on oil? Very high
Telephone (land line)................... 16 (see if you can combine home phone and internet for less)
Mobile phone............................ 10
TV Licence.............................. 25 how soon until this halves (after 6months on DD) will drop to £12.37
Satellite/Cable TV...................... 30 could you cancel & use freeview? If stuck in a contract drop to basic package, if out of contract look at freeview.
Internet Services....................... 5
Groceries etc. ......................... 500 very high for a family of 5, should be able to manage on 300, some can manage a family of your size on 200. Try to work on cutting this down. (Try dropping brands, meal planning, batch cooking, use cheaper supermarkets - Lidl/Aldi. Pop over to the old style board for advice)
Clothing................................ 30 (drop to essentials only)
Petrol/diesel........................... 100
Road tax................................ 21
Car Insurance........................... 50 (Check comparison sites at renewal)
Car maintenance (including MOT)......... 30
Contents insurance...................... 25 looks high for contents only, shop around at renewal time (Check all the comparison sites)
Life assurance ......................... 10
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30 can you go slightly longer between cuts? take the kids to somewhere cheaper or cut them yourself? (see if there's a college near you that offers trainee cuts for free/very cheap)
Entertainment........................... 0 (nothing?)
Total monthly expenses.................. 1772

Assets
Car(s).................................. 4000
Total Assets............................ 4000

Secured & HP Debts
Description....................Debt......Monthly.. .APR (Do you know what, if any, interest is being charged on this and unsecured debts?)
Mortgage...................... 30000....(0)........0
Total secured & HP debts...... 30000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
credit card....................2000......0.........0
catalogue......................1000......0........ .0
car............................9000......0........ .0
Total unsecured debts..........12000.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,772
Available for debt repayments........... -272
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -272
Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -30,000
Total Unsecured debt.................... -12,000
Net Assets.............................. -38,000
Hi,

I have made some comments above on top of Tixy's to try and prevent duplication. You definately need to invetigate the utilities (electric and oil) they are crippling you.

As your SOA shows, even without making any debt repayments you are still short every month. How have you been managing. If you cannot manage to get your expenses to equal your outgoings, even before debt repayment, then you will constantly be getting further and further into debt.

I would recommend that you speak to one of the debt charities - CCCS, National debtline or CAB who will be able to give you advice on all of your options, and be able to comment specifically on your situation.

HTH

D9

RAS

Why are you paying so much rent, given your income? Go to www.turn2us.co.uk and see if there is further help you can get.

Your oil and electric bills are horrendous.

Plainly you cannot afford to live in this property. How long before you can move?

limboland

Hia tixy, some replies to the above expenditure. We live in a very cold old farmhouse, i tried to move last year but with credit checks i was unable to.

Electricity............................. 160 this seems horrendously high a month - are you paying off arrears as well?
Yep 40 pound a week, i have all energy saving bulbs in,the oil system uses electricity too. I turn everyhting off when not in use. Really frustrating.

Oil..................................... 350 and this looks huge as well, surely you are not sending £4200 a year on oil?
The heating is on 24/7 on the lowest setting. When i first moved in it was only £200 pm but with increases it is now this. I turn off radiators in rooms that im not using, but the house is never comfortbly warm, thankgoodness for jumpers! My problem at the moment with searching for a cheaper supplier, is that i have my oil in advance and have to pay it back before they send me more oil. We went over new year with no oil due to finances and it was depressing.

TV Licence.............................. 25 how soon until this halves (after 6months on DD)
This is my fault, forgott about tv licence so trying to catch up, this finishes in april.

Satellite/Cable TV...................... 30 could you cancel & use freeview?
I agree with you there, will be looking in to that one.

Groceries etc. ......................... 500 very high for a family of 5, should be able to manage on 300, some can manage a family of your size on 200. Try to work on cutting this down.
Again i agree with this, i shop at aldi and we dont have luxeries. I am a childminder so feed other children too. I generally spend 100 per week on food, and then fresh milk and bread every other day over the month so probably not that high but near enough. Will work on that.

Contents insurance...................... 25 looks high for contents only, shop around at renewal time
Again due to being a childminder i have public liability on there etc.


Haircuts................................ 30 can you go slightly longer between cuts? take the kids to somewhere cheaper or cut them yourself?
Agree

limboland

Ras, i dont pay the rent the social do, but they give me the money each month and i then go and ay it.

I know electricity and oil are horrendus, dont know what to do about them i have tried everything to get it lower. I cant move because bad credit and estate agents wont touch me.

How do other people get rented houses after bad credit?

limboland

Saying that i have a fair few years of paying rent ontime in this property, would that not go for anything?

limboland

Tas, Have any of your creditors (aside from the mortgage) taken you to court or obtained CCJs against you (if you are not sure you can check your old address on the registery trust online - costs £8 per address but means they cannot trace you through your check). Need to check that

Have you paid anything to the debts for the last 4years? Nope

How likely is it your business incomes will increase soon? could either of you also get part time employed work to supplement your incomes?
My business (childminder) has just picked up so come april i will be full so will have more income.