A bit concerned need some advice

bigfatmonkey1

hi all, im in a bit of a bad situation,

iv been self employied for the past 5 years contracting to a company in the electrical industry, 99% of my work was for them, things slowed down last year and things were getting very tight, they did keep me ticknig over with some work but not enough to cover all the bills.

I had some personal debt as well as business debt, in january i took out some new loans totalling £25,000 to consolerdsate my personal debts and leave some free cash to keep things ticking over as work allways picked up in march.

now here is is major problem,at the start of febuary completely out of the blue they finished me as a contractor, they now wanted to use there employied engineers only, i had to lat off my 2 employies send back my leased vans.

at this point my world collapsed in on its self, some how in the middle of all of this i got the idea to send my CV out to verious companies in my industry, with in 2 weeks i was offered a perminant employied job earning £22k a year, i took the job oviosly.

now here is the major problem, i am now left with the business debt of £15k as well as the new debt i took out in Jan of the £25k(now 34k with the intrest).

with the new job there is no way i can pay this, the business debt was mostly caused keeping the business running last year and the personal stuff was used for home improvments and credit cards.

looknig into it my only choice is bankruptcy however i am concerned it looks bad gonig so soon after taknig out these substantial loans, i had no idea they were gonig to finish me when i took them out but still it looks a bit sus if i went now.

i was going to petition for my own bankruptcy but am concerned what the OR will do.

Ineedaname

These things happen and when you took the loan out you weren't to know you would lose your contract, so don't get too hung up on that.

You need to contact one of the free debt advice charities listed in the sticky thread "look here first" and they will be able to take you through your options.

We'll do everything we can to support you on here too if BR does appear to be the best option. Ask any question you like and someone will know the answer.

McKneff

22k is not a bad salary, I would have thought you could cope with the debt you have taken, lots of people manage with mortgages far hgher than your debt.

There are more things to help with debt before going straight to bankruptcy

Why not post up an SOA tosee if we can help that way first.

bigfatmonkey1

Below is my SOA, the car is my wife's for work, i no longer have a car, we live in a rural area so i use quite a lot of fuel.

also the business debt is an overdraft so no real monthly amount currently put against it, but they have informed me they want the total settles with in 30 days now i am no longer self employed.


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 550
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750

Monthly Expense Details
Mortgage................................ 480
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 80
Gas..................................... 50
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 12
Mobile phone............................ 40
TV Licence.............................. 12.15
Satellite/Cable TV...................... 25
Internet Services....................... 20
Groceries etc. ......................... 350
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 61
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 12.5
Contents insurance...................... 0
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1550.65


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 108000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(480)......0
Total secured & HP debts...... 102000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Business.......................15700.....0.........0
Personal Loan 1................22000.....233.......0
personal loan 2................12000.....196.......0
Total unsecured debts..........49700.....429.......-


Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,550.65
Available for debt repayments........... 199.35
Monthly UNsecured debt repayments....... 429
Amount short for making debt repayments. -229.65

Personal Balance Sheet Summary
Total assets (things you own)........... 108,000
Total HP & Secured debt................. -102,000
Total Unsecured debt.................... -49,700
Net Assets.............................. -43,700

tigerfeet2006

Please talk to Business Debtline and go through your options with them. They will give you free impartial advice on your situation.

http://www.bdl.org.uk/

bigfatmonkey1 wrote: »

Below is my SOA, the car is my wife's for work, i no longer have a car, we live in a rural area so i use quite a lot of fuel.

also the business debt is an overdraft so no real monthly amount currently put against it, but they have informed me they want the total settles with in 30 days now i am no longer self employed.

This is my take on how an OR may look at your SoA if you go BR.


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 550
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750

Monthly Expense Details
Mortgage................................ 480
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 80
Gas..................................... 50
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 12
Mobile phone............................ 40 Put in with landline max. £60
TV Licence.............................. 12.15
Satellite/Cable TV...................... 25 not allowed on your SoA, must come from any surplus.
Internet Services....................... 20 only allowed if needed for work or school
Groceries etc. ......................... 350 £400
Clothing................................ 50 £90
Petrol/diesel........................... 160 Do you drive your wife's car? How do you get to work?
Road tax................................ 15
Car Insurance........................... 61
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 £5 per week for activities. £2 per day for primary school dinners. £3 for secondary
Medical (prescriptions, dentist etc).... 0 £20
Pet insurance/vet bills................. 20
Buildings insurance..................... 12.5
Contents insurance...................... 0 Do you not have contents insurance?
Life assurance ......................... 22 the OR may be interested in this.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0 £60
Emergency fund.......................... 0 £30
Total monthly expenses.................. 1550.65


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 108000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(480)......0
Total secured & HP debts...... 102000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Business.......................15700.....0.........0
Personal Loan 1................22000.....233.......0
personal loan 2................12000.....196.......0
Total unsecured debts..........49700.....429.......-


Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,550.65
Available for debt repayments........... 199.35
Monthly UNsecured debt repayments....... 429
Amount short for making debt repayments. -229.65

Personal Balance Sheet Summary
Total assets (things you own)........... 108,000
Total HP & Secured debt................. -102,000
Total Unsecured debt.................... -49,700
Net Assets.............................. -43,700

If you feel you don't want to go BR and try another route like a DMP then the folks on the Debtfree Wanabe can check out your SoA and minimise all your spending to maximise your money to pay towards your debts.

If you do go BR and not your wife you won't be expected to show her full wage only what she pays towards the household.

McKneff

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 550 could you partner up her hours or find another part time job.
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750

Monthly Expense Details
Mortgage................................ 480
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 80 Wow, Horrendously high for two of you.
Gas..................................... 50 Ditto, shop around for both
Oil..................................... 0
Water rates............................. 31 Investigate getting a meter
Telephone (land line)................... 12
Mobile phone............................ 40 This is a lot, drop it down or get a PAYG
TV Licence.............................. 12.15
Satellite/Cable TV...................... 25 Get sky and integrate your internet services
Internet Services....................... 20 As above.
Groceries etc. ......................... 350 For just two of you, you could halve this easily
Clothing................................ 50 Make do with what you have, you are skint, are you serious spedning this much
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 61 Shop around
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 12.5
Contents insurance...................... 0 No matter what, you really should have contents insurance, try a combined policy
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1550.65


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 108000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 102000...(480)......0
Total secured & HP debts...... 102000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Business.......................15700.....0........ .0
Personal Loan 1................22000.....233.......0
personal loan 2................12000.....196.......0
Total unsecured debts..........49700.....429.......-


Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,550.65
Available for debt repayments........... 199.35
Monthly UNsecured debt repayments....... 429
Amount short for making debt repayments. -229.65

Personal Balance Sheet Summary
Total assets (things you own)........... 108,000
Total HP & Secured debt................. -102,000
Total Unsecured debt.................... -49,700
Net Assets.............................. -43,700

Hope the comments help.

betterlatethannever

Don't wish to be picky Mcneff- but there's 3 of them, not 2

BFM- you need to put down the benefits you receive- Child benefit etc

mel12

If you do go BR and not your wife you won't be expected to show her full wage only what she pays towards the household.

Which should be done proportionately by income. Ie she would pay approx 30% of the household expenses as she has approx 30% of the household income.

With tigerfeet's corrections to the SOA I make it 1691.15 total expenditure, of which your wife should contribute £507 leaving yours as 1200 - 1184.15 = £15 surplus. The OR will give anyone with a surplus over £20 an income payment arrangement taking the whole surplus for 3 years [it can be adjusted up or down if your income changes]. I'd say its touch and go whether you'd get one or not, depending on the exact amounts the OR allows.

[EDIT: but seeing the comments from other posters below about child benefit and wife's car it looks like you would have a larger surplus]


Bear in mind this is approximate, and we can only give a rough guideline to what the OR will allow.
[STRIKE]

McKneff- I think the SOA is to look at what the OR would allow during bankrupcy rather than what savings can be made as on the DFW board. There are specific guidelines about the amounts the OR will allow.[/STRIKE]

EDIT: Sorry I misread the earlier post.
McKneff's responses discuss how you could save money if going on a debt management plan / IVA, while tigerfeet's discuss the allowances you would be given in bankrupcy. Both useful depending on the options you choose.

Ineedaname

Your wife's car, all costs are your wife's and do not need to be on your SOA. If you drive the car regularly for your own purposes then include some petrol and maybe a proportion of the tax/mot/insurance.

Only include the proportion of your wife's income that goes towards the household expenditure. Don't forget Child Benefit in full as you are including all child related costs.

tigerfeet2006

betterlatethannever wrote: »

Don't wish to be picky Mcneff- but there's 3 of them, not 2

BFM- you need to put down the benefits you receive- Child benefit etc

Ineedaname wrote: »

Your wife's car, all costs are your wife's and do not need to be on your SOA. If you drive the car regularly for your own purposes then include some petrol and maybe a proportion of the tax/mot/insurance.

Only include the proportion of your wife's income that goes towards the household expenditure. Don't forget Child Benefit in full as you are including all child related costs.

Ooops! my bad I missed the fact there was no CHB down. Thanks for pointing that out.

Foggster

Surely you would be entitled to CTC or WTC?