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SOA & Bankruptcy

Hi Guys

Thought I'd post two SOA's for you to look at.

1. SOA at current moment - pre-bankruptcy. Feeling poorly 'cos trying to keep up with never ending debt & working 30 hours/ week with one year old daughter.
No amount of o/time will get us out of hole.

Income
Ben (Full time) £1235
Me (30 hours) £ 1000
Child Benefit: £75.82
Total Income: 2310.82

Expenditure:
Rent £600
Household Shopping £260
Council Tax £114
My Car insurance £35.99
Ben's Car Insurance £11.41 (work in opposite directions, so two cars needed)
Electricity £47.57
Electricity arrears £15.00
Mobiles £30.00
Home phone/ internet £47.34
Water waste £16.50
Water supply £8.43
Home insurance £12.00
Union membership £14.50 (nurse, so essential)
Tv Licence £11.00
Top up TV £7.99
Pet Insurance £28.15 (Petplan, dog has long-term condition, so can't go for cheaper option)
Car Tax Ben £16.04
Car Tax me £16.04
Petrol Ben £69.33
Diesel Me £86.67
Mot Ben £4.17
Mot me £4.17
Professional registration £3.58
Clothes £60.00
Holiday £60.00
Dentist £5.17
Optician £11.67
Incidentals £40.00
Christmas/Birthday £20.00
Car Maintenance £40.00

Total non-debt expenditure: £1697.19

Debts:

Ben Personal Loan £20000 ?apr £416.55
Louise Personal Loan £970 ?apr £120.73
Ben Egg Card £5500 ?apr £110
Ben Capital One £6000 ?apr £120
Louise Lloyds Master Card ?apr £1000 £20
Louise O/D £1800 ?apr £30
Ben O/D £610 ?apr £30
Joint O/D £400 ?apr £20

Total debt commitment £ 867.23

Income vs Expediture:
2310.42-2564.47 = -253.65:mad: :eek:

Planned SOA Post-bankruptcy:

Income
Ben (Full time) £1235
Tax Credits: £128.13
Housing Benefit: £202.69
Child Benefit: £75.82
Total Income: 1641.64

Expenditure:
Rent £600
Household Shopping £260
Council Tax £114
My Car insurance £35.99
Ben's Car Insurance £11.41 (work in opposite directions, so two cars needed)
Electricity £47.57
Electricity arrears £15.00
Mobiles £30.00
Home phone/ internet £47.34
Water waste £16.50
Water supply £8.43
Home insurance £12.00
Union membership £14.50 (nurse, so essential)
Tv Licence £11.00
Top up TV £7.99
Pet Insurance £28.15 (Petplan, dog has long-term condition, so can't go for cheaper option)
Car Tax Ben £16.04
Car Tax me £16.04
Petrol Ben £69.33
Diesel Me £86.67
Mot Ben £4.17
Mot me £4.17
Professional registration £3.58
Clothes £60.00
Holiday £60.00
Dentist £5.17
Optician £11.67
Incidentals £40.00
Christmas/Birthday £20.00
Car Maintenance £40.00

Total non-debt expenditure: £1697.19

Income vs Expenditure: £1641.64- £1697.19 = 55.55

Obviously some shaving needs to be done, but this is my first SOA attempt, so please give me any tips or ideas of what is too low/ high.

Many thanks

Louise
«1

Comments

  • tyllwyd
    tyllwyd Posts: 5,496 Forumite
    Hi Louise

    I had a look through your SOA but to be honest it looks pretty tidy. I think the fact that you only have £55 is not so bad, because you have allowed for incidentals/holiday/clothes/christmas/car maintenance in the SOA and I don't suppose you will spend the full amount in all those categories every month. You could cut out the top up tv if you wanted, and your phone/internet looks quite high. You don't have any childcare listed?

    Have you definitely decided on bankruptcy and had professional advice to tell you that this is the best way forward? To be honest, your situation doesn't look as bad as many people on this board, so if you haven't talked things through with CCCS/PayPlan, I think you should in case a debt management plan or IVA would be a better option.
  • Your home phone/internet looks high-I pay £30 a month for mine including cable TV.
    I would also cut out the clothes-you don't need to be spending £60 a month on them.
    Cut out the top up tv too until you can afford it.
    Holidays saving is non essential too.(I haven't been on holiday for 2 years)
    Can I ask why you plan on not working at all in the second SOA?You could always reduce your hours instead of cutting them out totally and that would give you more income too.
    Debts Jan 2014 £20,108.34 :eek:

    EF #70 £0/£1000

    SW 1st 4lbs
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    if you are determined to go bankrupt and not work:

    you will not need two cars if you aren't working and the OR will probably sell yours (how much is it worth)...so petrol, insurance etc will all be less

    presumably if you're not working you won't need to pay union/professional fees etc
  • Hi Guys

    Thank you so much for your replies.

    With regards to working - not completely resolved. I am a nurse, so to maintain my professional registration, I do need to work 150 hours a year i.e. ~5 hrs a week (to be safe incase of sickness, etc). I simply can't maintain working 30 hours a week. I have history of post-viral fatigue syndrome, have been back at work 5 months and am thoroughly exhausted, with almost constant vaguely sore throat (normally a sign that I'm going down hill).

    Clapton - I can see your point about the car situation. If I work, even 5 hours, all of those things would need to stay, which, I suppose, would mean that in effect I was working for nothing, in a round about way!
  • Hi louise,

    If you decide to go bankrupt, the OR can be quite srtict as to what you are allowed. For example they may say no to savings for a holiday and top up tv as they see it as a luxury. Also if you are not going to work after bankruptcy then the OR would probably suggest that you sell a car cos even if you are working only 5 hours a week they would suggest public transport. SO this would then give you £230.86 to go towards the bankruptcy every month. You have to be careful about having a mobile too as well as having a landline as this too is considered a luxury. I was only allowed to keep mine as i am on 24 hr call as a carer for my parents.

    Sorry if this sounds a bit disheartening

    Me ;)
    😁
  • Louise, I think that with a child so young you should be allowed to stay at home to look after it. I don't know what Clapton thinks he can achieve by being negative. You may not be allowed to keep a car post bankruptcy but I was. I don't work but the car was not worth loads and the OR agreed I needed to have a car for attending medical appointments etc. I have clinical depression and anxiety.

    Bankruptcy was the best thing that happened to me and I can now sleep nights. I am hoping for an early discharge as the OR has written to me saying he is going to apply for it in the New Year. I owed £130k and the OR certainly never made life difficult for me. You do not owe very much in the scheme of things and you will probably be dealt with over the phone and by letter as far as the OR goes.

    With your profession you will always work, would it not be possible for you to just dip in and out of agency work as an when you need extra cash in the future.

    I agree about the clothes - £60 seems a lot to me. However, the holiday thing is different, you need to have quality time programmed into your year to relax and spend time with your family. However maybe you could halve it for now which would speed up the time you need to raise your BR fees.

    By the way if you are going bankrupt, I wouldn't bother to make payments to your creditors. They will do nothing for 4 - 6 months and you can use the cash to pay the court fees.

    Louise
    Nobody is perfect - not even me.
  • Blue Zone the OR never asked me about my mobile or my landline and was perfectly happy to let me keep them. I also kept my bank account. As Louise has a small baby the OR will not expect her to go out to work. Yes he may say she can't have a car but they may be able to compromise on that by her buying back of the OR for an agreed amount.

    Don't lose heart Louise - I used a Insolvency Practitioner - I paid her (am still paying her) £3500 to manage my Bankruptcy but she has been worth every penny. I will finish paying her at the end of next year and it was money well spent in my opinion. If I had continued to pay my creditors I would have paid £36,000 in the same amount of time!!!!

    PM me if you want anymore support.

    Louise
    Nobody is perfect - not even me.
  • Thanks, Jellycat

    I posted to get genuine responses, so am not at all offended by clapton. I was just going by the guidelines given to me. We do have in-laws in France, so unrealistic to not budget a trip per year to see them.
  • bonnie_2
    bonnie_2 Posts: 1,463 Forumite
    don't forget your ctc about £40 a week if you give up work.
  • bonnie_2
    bonnie_2 Posts: 1,463 Forumite
    I think you would probably get slightly more tax credit and housing benifit if you gave up work.
    Also i think 2 cars is a bit of a luxury if your not working and have time to walk and its not good for children being ferryed everywhere by car. The car costs you over £120 a month.
    Do you need to pay union fees if not working.
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