Going public. My SOA

Cumbrian_Male

Sorry it's a bit long

Background

I was made redundant in Feb. and new job is £7000pa less also lost a company car and bonuses. I'm about £10000 a year worse off.

Tried to maintain minimum payments for a few months but just ended up with large overdraft.

Contacted CCCS in June and did a budget which showed no disposable income so templates letters sent to offer token £1pm to creditors.

Got a small pay rise and son went to local college in Sept. so got child benfit reinstated and more child tax credits, so reviewed budget and started DMP with CCCS.

Income

ME £1251 + irregular bonuses when targets met.
OH £411 IVB
CB £123
CTC £123

£1908

Outgoings

£500 Mortgage aprox. £92000 equity
£141 Council tax
£33 Gas
£40 Electric
£30 Water
£26 Building and contents ins
£40 Mortgage protection ins
£11 TV licence
£18 Sky basic
£10 Phone bill calls
£20 Mobile
£18 Broadband
£11 BT line rental
£15 Car maintainence essential for employment
£14 Road Tax
£28 Car ins
£7 Breakdown cover
£90 Petrol for commuting and personal mileage business miles reimburessed
£325 Food toiletries etc. 2A DS17 DD13
£108 Tobacco wife smokes
£40 Clothing
£5 Hairdressing
£9 Prescriptions
£14 dental and opticians
£40 Sports hobbies entertainment
£40 sundries emergencies

£1633

£275 surplus all taken directly from CCCS budget

Creditors

£1399 A+L overdraft
£11766 MBNA CC all charges frozen
£3269 LTSB CC all charges frozen
£3260 Nationwide CC
£13659 Metropolitan Collection Services ex First Direct loan

£33353

All creditors except Nationwide have accepted the DMP. Nationwide have informed me that they are filing for a CCJ on Monday. At first I thought I would lose my job as work in credit industry but boss asked HR and was told its ok as I'm dealing with it, and an Admin Order or IVA would be acceptable.

So thats the detail, Nationwide think some of the expenditure is luxuries not essential or is excessive so want a charging order against me to protect their interests.

I would like you fine people to give your oppinions and advice.

Looking to go down the IVA or Admin Order route to formalise my DMP so I get no more creditors pushing for more money. Nationwide want a minimum £120pm.

What are the pro's and con's of each option. What if I could get loan for full and finals?

Over to you.

arnie&caseysma!

Hi Cumbrian Male
I have not looked at your options at the bottom yet but the following spring to mind just looking at your SOA:

Cumbrian_Male wrote:

Sorry it's a bit long

Income

ME £1251 + irregular bonuses when targets met.
OH £411 IVB
CB £123
CTC £123

£1908

Outgoings

£500 Mortgage aprox. £92000 equity
£141 Council tax
£33 Gas
£40 Electric try looking to change companies for this, I pay £46pm in total for gas and elec - dont have heating on etc when its not needed - an extra jumper?
£30 Water
£26 Building and contents ins try Tesco or something else to knock this down a bit, it may only be £5pm saved but it is £5!
£40 Mortgage protection ins and again and chance of lowering this?
£11 TV licence
£18 Sky basicFreeview? I appreciate not all area get this but if you were to cancel Sky they usually give a 3 or 6 month offer of basic package at 95% discount and there are plenty free channels available through the Sky box if you were to cancel
£10 Phone bill calls
£20 Mobile
£18 Broadband
£11 BT line rental
£15 Car maintainence essential for employment
£14 Road Tax
£28 Car ins again shop around a bit when renewal due and see if you can't lower this
£7 Breakdown cover
£90 Petrol for commuting and personal mileage business miles reimburessed
£325 Food toiletries etc. 2A DS17 DD13 Does DS17 have a part time job aswell as college that would allow him to pay a token amount towards this? A PT job is still allowed when you are claiming CB for him
£108 Tobacco wife smokes Easier said than done I know but get her to stop smoking - either that or packets of tobacco and cig paers are a lot cheaper than this. My OH spends about £40pm at the most when he has to buy here but mostly friend bring tobacco back from abroad for him - always worth asking
£40 Clothing this is obviously not a necessity every month. Make doe for a few months and put this money where you need to most
£5 Hairdressing - see clothing!
£9 Prescriptions - if this happens to be for your wife and asthma related another excuse to give up smoking!
£14 dental and opticians
£40 Sports hobbies entertainment
£40 sundries emergencies

£1633

£275 surplus all taken directly from CCCS budget

Creditors

£1399 A+L overdraft
£11766 MBNA CC all charges frozen
£3269 LTSB CC all charges frozen
£3260 Nationwide CC
£13659 Metropolitan Collection Services ex First Direct loan

£33353

All creditors except Nationwide have accepted the DMP. Nationwide have informed me that they are filing for a CCJ on Monday. At first I thought I would lose my job as work in credit industry but boss asked HR and was told its ok as I'm dealing with it, and an Admin Order or IVA would be acceptable.

So thats the detail, Nationwide think some of the expenditure is luxuries not essential or is excessive so want a charging order against me to protect their interests.

I would like you fine people to give your oppinions and advice.

Looking to go down the IVA or Admin Order route to formalise my DMP so I get no more creditors pushing for more money. Nationwide want a minimum £120pm.

What are the pro's and con's of each option. What if I could get loan for full and finals?

Over to you.

As far as I am aware (I'm sure I will be corrected if wrong) any payment you make to your creditors has to be accepted by them whether it is the minimum payment or not.

There will be others along shortly no doubt who will be able to advise you better on which course of action to take but I would like to congratulate you on dealing with your debts and wish you all the best.

Cumbrian_Male

arnie&caseysma! wrote:

Hi Cumbrian Male
I have not looked at your options at the bottom yet but the following spring to mind just looking at your SOA:

Originally Posted by Cumbrian Male
Sorry it's a bit long

Income

ME £1251 + irregular bonuses when targets met.
OH £411 IVB
CB £123
CTC £123

£1908

Outgoings

£500 Mortgage aprox. £92000 equity
£141 Council tax
£33 Gas
£40 Electric try looking to change companies for this, I pay £46pm in total for gas and elec - dont have heating on etc when its not needed - an extra jumper?
£30 Water
£26 Building and contents ins try Tesco or something else to knock this down a bit, it may only be £5pm saved but it is £5!
£40 Mortgage protection ins and again and chance of lowering this?
£11 TV licence
£18 Sky basicFreeview? I appreciate not all area get this but if you were to cancel Sky they usually give a 3 or 6 month offer of basic package at 95% discount and there are plenty free channels available through the Sky box if you were to cancel
£10 Phone bill calls
£20 Mobile
£18 Broadband
£11 BT line rental
£15 Car maintainence essential for employment
£14 Road Tax
£28 Car ins again shop around a bit when renewal due and see if you can't lower this
£7 Breakdown cover
£90 Petrol for commuting and personal mileage business miles reimburessed
£325 Food toiletries etc. 2A DS17 DD13 Does DS17 have a part time job aswell as college that would allow him to pay a token amount towards this? A PT job is still allowed when you are claiming CB for him
£108 Tobacco wife smokes Easier said than done I know but get her to stop smoking - either that or packets of tobacco and cig paers are a lot cheaper than this. My OH spends about £40pm at the most when he has to buy here but mostly friend bring tobacco back from abroad for him - always worth asking
£40 Clothing this is obviously not a necessity every month. Make doe for a few months and put this money where you need to most
£5 Hairdressing - see clothing!
£9 Prescriptions - if this happens to be for your wife and asthma related another excuse to give up smoking!
£14 dental and opticians
£40 Sports hobbies entertainment
£40 sundries emergencies

£1633

£275 surplus all taken directly from CCCS budget

Creditors

£1399 A+L overdraft
£11766 MBNA CC all charges frozen
£3269 LTSB CC all charges frozen
£3260 Nationwide CC
£13659 Metropolitan Collection Services ex First Direct loan

£33353

As far as I am aware (I'm sure I will be corrected if wrong) any payment you make to your creditors has to be accepted by them whether it is the minimum payment or not.

There will be others along shortly no doubt who will be able to advise you better on which course of action to take but I would like to congratulate you on dealing with your debts and wish you all the best.

Uswitch say i have the cheapest gas and electric for my useage also used Martin's batter down car ins costs to get best deal.

Take your point about Sky as had full package but gave us 3 months at £18 which is due to finish so cancelling is an option.

Son is looking for p/t job.

Wife has mental illness so get prepaid certificate for meds as 7 or 8 a month, and as a recovering alcoholic smoking is difficult to quit but she said she will speak to doctor about cessasion help. She doesn't deal with stress well an I prefer her to smoke than drink. We get imports but 40-50 a day is not unheard of.

I need suit and tie for work so shirts and clothes for kids do add up but can cut back some. We didn't have anything budgetted originally but CCCS said we must so reduced grocery budget to offset.

Thanks for replying.

arnie&caseysma!

Sorry to hear about your wife, it must me a bit of a struggle sometimes and I think I would be the same preferring her to smoke rather than drink if it had to be one or the other, I am glad to hear that she is recoving though.

Does your wife smoke in the house? I banned it here and found that the amount being smoked has reduced as it is a bit more of a hassle having to go to the back door to light up (it is only 10 steps away from where he sits!) and being this time of year obviously a bit reluctant to stand in the cold. It is one step that it you could get your wife to agree to it would cut down on the dry cleaning costs of your suits as they may not smell of smoke as much.
Try the tobacco and papers thing, it may work, or it may not but there is only one way to find out. It also takes more time and concentration to roll them aswell taking a bit of time!

Tustastic

Cumbrian Male, I think you and your wife are heroes for keeping afloat despite mental illhealth and redundancy.:A
arnie&caseysma! is right about encouraging smoking at the back door/outside. If your wife does an NHS stop smoking course she will get a free prescription for one type of Nicotine Replacement Therapy (NRT) while she is on the course, which last for a few weeks. Courses can be group, or 1to1 with the practice nurse or a local pharmacist. I used to spend £120 a month on my cigarette addiction but the 1to1 course has worked for me.:)

Cumbrian_Male

A little more research suggests that an Administration Order is only viable if debts are < £5000 and I have a CCJ already. So neither apply at present but my debt is to high.

Is there anyone on here who has an IVA and how does the equity in the property get taken into effect.

I would rather not have to sell the house and couldn't afford an equity release loan if they want the value. It also defeats the object of trying to become debt free.

I think I will ring CCCS on Monday to enquire about more options.

Thanks for all your support.

moozie_2

Hi there

I think contacting any of the debt charities is a good idea. There are many threads on IVAs on here - a search of the forum should come back with a few good pieced of information.

Best of luck.