No money?

LTP123

Evening everyone.

We have recieved our iva failure cert's today so will be looking at declaring BR this next few weeks.

What happens though if you are genuinely not making enough money come in to the house to pay the essential bills? I had no choice but to leave my job a few months ago and am struggling to gain another job. By my workings, we are around £400 short a month. What will the OR say?

freddy911

I think to answer this question you will have to give more info about what your basic expenses are? mortage/rent utilities and income. How many family members children etc.

Ineedaname

Post up an SOA if you wouldn't mind, then members can have a look and try to help some.

confused76

http://www.turn2us.org.uk/benefits_search.aspx

and perhaps worth checking you're getting all the help you could be getting?

LTP123

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................ 0
Partners monthly income after tax....... 1150
Benefits................................ 246
Other income............................ 0
Total monthly income.................... 1396
Monthly Expense Details
Mortgage................................ 673
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 48
Gas..................................... 64
Oil..................................... 0
Water rates............................. 48
Telephone (land line)................... 0
Mobile phone............................ 0

Thanks for any help. I haven't put our debts down as they have been in an iva for over a month. We have around £41,000 altogether.

We have a landline, mobiles and broadband but I didn't include them either as they're not essential. Daughter is 2 so needs clothes and shoes quite regularly.

LTP123

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................ 0
Partners monthly income after tax....... 1150
Benefits................................ 246
Other income............................ 0
Total monthly income.................... 1396
Monthly Expense Details
Mortgage................................ 673
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 48
Gas..................................... 64
Oil..................................... 0
Water rates............................. 48
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 360
Clothing................................ 80
Petrol/diesel........................... 100
Road tax................................ 185
Car Insurance........................... 72
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................. 0
Buildings insurance..................... 14
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1795

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 111000...(673)......7.9
Total secured & HP debts...... 111000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,396
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... -399
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -399
Personal Balance Sheet Summary
Total assets (things you own)........... 3,500
Total HP & Secured debt................. -111,000
Total Unsecured debt.................... -0
Net Assets.............................. -107,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Sorry only printed half!

confused76

is your road tax the annual amount? what is the situation with your house, are you behind with payments or have you got a payment holiday?

LTP123

Hiya, thanks confused. Not behind with the mortgage and yes the road tax is for the year sorry. Now we have a failure cert the mortgage lender siad we can have a month off if we need it. We will need that money and the sale of my car to go BR. That will still leave us with my hubby's car as listed above.

NeverAgain_2

Strictly, you own your house, and the large debt outstanding on it.

What is the value of the house?

Your basic problem is the mortgage is too much for your income.

A rule of thumb is a week's money for mortgage payments is manageable.

In your case this equates to about £325, which is less than half what you need.

You need to either reduce/get rid of the mortgage, or up your income.

confused76

LTP123 wrote: »

Hiya, thanks confused. Not behind with the mortgage and yes the road tax is for the year sorry. Now we have a failure cert the mortgage lender siad we can have a month off if we need it. We will need that money and the sale of my car to go BR. That will still leave us with my hubby's car as listed above.

that's good they will let you have a month off. you could put a note on the back page of the forms and say that there is a discrepancy due to leaving your job but you are actively seeking work or something like that?

iamana1ias

LTP123 wrote: »

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................ 0
Partners monthly income after tax....... 1150
Benefits................................ 246
Other income............................ 0
Total monthly income.................... 1396
Monthly Expense Details
Mortgage................................ 673
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 48
Gas..................................... 64
Oil..................................... 0
Water rates............................. 48
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 360
Clothing................................ 80
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 72
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................. 0
Buildings insurance..................... 14
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1625

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 111000...(673)......7.9
Total secured & HP debts...... 111000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,396
Expenses (including HP & secured debts). 1,625
Available for debt repayments........... -229
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -229
Personal Balance Sheet Summary
Total assets (things you own)........... 3,500
Total HP & Secured debt................. -111,000
Total Unsecured debt.................... -0
Net Assets.............................. -107,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Sorry only printed half!

So you're actually only £230 out which you can easily sort with less money on groceries and clothing. No 2 year old needs £80 of clothes and shoes per month!