I've done it - SOA Help Required

Gemmzie

Spoken to Egg... they've frozen the card but can't do anything about the loan, but have said that he can miss a payment, although it will incur a default.

So that's one good thing I guess, they've suggested speaking to National DebtLine as we have zero disposable income.

Going to continue phoning ourselves for now, as I feel any company will say the Big 'B' which means we'll probably lose the house

gallygirl

Gemmzie you are doing great.

1 thought - your dads mortgage insurance - is he self employed? Is this life insurance or mortgage protection? If mortgage protection it probably wouldn't apply if he's self employed, in which case cancel and look at misselling.

Good luck.

Gemmzie

Yes he is self-employed, will definitely take a look at that in the morning , thanks.

Every little helps


Have phoned the rest of the creditors, not much help but all gave the number of CCCS so Dad's decided that's for the best (the lightbulb grows brighter).

Got to give them an SOA right? Can I use the one that is here? We are going to leave my mum's income as seperate and she is going to pay £200 into their Joint account to give a disposable income to pay the debts, as all the creditors say that we are lacking this.
Does that seem okay?

Also, must must must send letter to reclaim bank charges to old NatWest accounts.

CLAPTON

some comments

firstly ...once again i think you're doing a fantastic job helping your parents out like this in what seems a very complicated situation.

i would make the following obseravations and suggestions

bankruptcy : he can't go bankrupt as he isn't insolvent ...the equity in the house is greater than the debts.

IVA : may be a possiblily but they would look at the equity in the house so i doubt thats a real goer either.

you have said that your mother could contribute 200 to his a/c so he has a disposable income but she doesn't have 200 spare....which brings me to the next point.

i would suggest you re-organise the budget and add up some totals so you can see exactly where you are ;

start with income : you talk about his wages but also say he is self employed

can you go back over his last 6 months earning and work out a real average....are there any Tax/NI costs that need to be deducted...are they any cost of materials (or other cost of doing business) that need to be deducted?

what is the benefits situation....why do you get any at all?

work out an average genuine 'take home' income for him

once you have done that start on the spending

write out a new spending list (and ignore his two a/cs) just produce one list for him.

look at each item and ask youself do you really need this and is it likely your creditors will accept this .... smoking and rum are NOT going to be liked by his creditors


and very importantly add up the total spend (before any unsecured debt repayment)

once you have the total you can then see how much is available for unsecured debt repayments

then work out the debts and add up the minimum monthly payments.


do this separately for your mother.

other comments on the spending :

at the moment he is basically spending more than his income even before debt repayment....that absolutely can't continue..even if debts were wiped out (which they wont be) he would simply start the spiral all over again.

some things that could go
BG service 18.91
health insurance 29.9
sky 63.5
what is the HSBC mortgage insurance ...is it simply life insurance or
something more ..it seems expensive to me
bt 50 .... can be reduce 11 basic rental, 15 internet and then use call1899 or similar for call say 5 total 31 rather than 50
Norwich Union....is this compulsory or can he stop this until he has sorted himself out...can be cash it in ...what would the value be?
sky 9.9 repair plan...a waste of money
electric is very high...have you actually checked the meter readings against the bills?...can you cut useage down by turning the heating down/off?
smoking/rum...well he cant afford this level of spending and i dont think its a good idea to produce a SoA with that it for your creditors.

sorry its a bit long but i think starting from the beginning again might help to clarify things.

but as of this moment my summary is this

his income 2000
his spending 2070 before anything for unsecured debt
his debt repayments 787
so shortfall of over 800

and mums

mums income 675
spending 200

spare is 475
debt repayments 323
so actual surplus if about 150 only

Gemmzie

Thank you, have answered questions as best I can...

CLAPTON wrote:

you have said that your mother could contribute 200 to his a/c so he has a disposable income but she doesn't have 200 spare....which brings me to the next point.
No, she does not, however for the next year we are getting tax credits which is where this £200 would really come from, plus £50 from me as that is what I pay to Dad's HSBC card for my car (as recorded in my signature)

start with income : you talk about his wages but also say he is self employed
Yes, he is only self employed, sorry have just got used to terming it as his "wage"

can you go back over his last 6 months earning and work out a real average....are there any Tax/NI costs that need to be deducted...are they any cost of materials (or other cost of doing business) that need to be deducted?
I can do that, good idea

what is the benefits situation....why do you get any at all?
We get CTC with the disability element as I am 19 myself and still in full time further education and I get DLA - this is £301 per four weeks as from next Friday (DLA has only recently been instated)

look at each item and ask youself do you really need this and is it likely your creditors will accept this .... smoking and rum are NOT going to be liked by his creditors
I think he is finally realising this, and he'd rather give up those than Sky (I know, I know)

other comments on the spending :
at the moment he is basically spending more than his income even before debt repayment....that absolutely can't continue..even if debts were wiped out (which they wont be) he would simply start the spiral all over again.
Yes, this is something which has clearly been a problem from the start, living right the way to breaking point with zero disposable income or saving, for that matter

some things that could go
BG service 18.91 - We have a very old boiler, is this safe to cancel?
health insurance 29.9 - Completely?
sky 63.5 Yes, however I feel a cutback will have to do for now, as we only got Sky HD recently (bet I can guess how that was paid for _pale_) and are tied into 12 months
what is the HSBC mortgage insurance ...is it simply life insurance or
something more ..it seems expensive to me I'm not 100% sure, will check
bt 50 .... can be reduce 11 basic rental, 15 internet and then use call1899 or similar for call say 5 total 31 rather than 50 I thought that, I have no idea what the other charges are for... will check
Norwich Union....is this compulsory or can he stop this until he has sorted himself out...can be cash it in ...what would the value be? - Not sure
sky 9.9 repair plan...a waste of money Definitely
electric is very high...have you actually checked the meter readings against the bills?...can you cut useage down by turning the heating down/off? Yes, it's been checked several times, we aren't with the best company it seems
smoking/rum...well he cant afford this level of spending and i dont think its a good idea to produce a SoA with that it for your creditors.I was going to remove that one, that was my brainstorming as to what I knew was coming out


I will show him your figures so that he can see it in black and white, hope it helps a bit more

Gemmzie

I've got the National Debtline Debt pack thing, and am sorting out the budget. Still trying to keep Mum's income separate as much as possible but with her making a contribution.

It's all causing so much problems, it's been the tip of a very large iceberg, which I knew was coming and to be perfectly honest, I think my Dad did too.

Gemmzie

Okay, bank charges are my next step.

NatWest (two accounts),
Then 5 credit cards,

Which credit cards are affiliated with HSBC?

Gemmzie

So far -
£500 from Dad's personal account
£855 from his credit cards
Still got two NatWest ones to get the statements for.

Not sure who to pay off with it though, if we do get it back.

His bulb is getting brighter and he's agreed to do a DMP with me administrating it for now, going to CCCS if necessary.

Gemmzie

I'm still redoing the SOA, improving as you can see but still a work in progress...
Trying to avoid mum's wages being involved too much. And the aim is for a DMP - self administered for now but CCCS if we get stuck.
IVA and bankruptcy aren't ideal options because of the house.


Changes so far...
* Gas and Electric, moved to Scottish Power - saving £220 approx per year, so knocked Gas to £50 (from £55) and Electric to £80 (from £95) :T Plus £35 from Quidco, of course :money:

* Health Insurance - ending as of May (completes the year) - no longer worth it - £30 saved :T

* Still chasing BT as to why we are paying so much

* Mum has given up Tai Chi so that makes it just Yoga which we worked out over the year is £11 per month - £19 saved


Next Steps...

* Dad's HSBC bank charges - £690.89 - sending the letter 29/12

* Getting statements for old current accounts.

* Lower Sky package



How do I put something into the budget for a DMP when it's ending in May?

Tustastic

Gemmzie, I have just read through this thread and I think you are an absolute hero. :A You will probably turn out to be the best investment (financial and personal) that your parents have ever made! :A The debts sound terribly scary but at least everything is coming into the open now, so you can start to tackle them. You've had some great advice and support on here already. How on earth do you find time to study on top of the debt management?