SOA for DRO help needed

cupcake83

I found this board so helpful when i was applying for my DRO which was granted in Feb 2010. My mother has recently become a single parent and is struggling meeting minimum payments on her debts, some have not been paid for months. She has tried to get through to our local CAB for advice but the lines are so busy so we we're hoping to get advice on the SOA now to help with the process should a DRO be suitable.

Thank you in advance for any advice.

Just want to add that although it says 3 children, one is 16 soon to be 17, one is 15 and other is 11. the 16 and 15 year old eat adult size portions and have adult size clothes so its like having 3 adults and 1 child in the household.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1693
Other income............................ 0
Total monthly income.................... 1693
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 437
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 97
Gas..................................... 60
Oil..................................... 0
Water rates............................. 49
Telephone (land line)................... 25
Mobile phone............................ 20
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 660
Clothing................................ 60
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 19
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Home schooling costs.................... 30
Total monthly expenses.................. 1664

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Budgeting loan.................812.......0.........0
Littlewoods....................1927......0.........0
Nationwide card................2721......0.........0
Next card......................2146......0.........0
Nationwide overdraft...........200.......0.........0
Santander......................242.95....0.........0
Santander......................35.24.....0.........0
Total unsecured debts..........8084.19...0.........-

Monthly Budget Summary
Total monthly income.................... 1,693
Expenses (including HP & secured debts). 1,664
Available for debt repayments........... 29
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 29
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,084.19
Net Assets.............................. -8,084.19
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

dbt3mummy

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... Do you own any vehicles?
Monthly Income Details
Monthly income after tax................ 0 I don't mean this to sound rude but could you not get a job? Even a part time one.
Partners monthly income after tax....... 0
Benefits................................ 1693 Check all your benefits are up to date and correct.
Other income............................ 0 Do you not get any maintanence payments for the children?
Total monthly income.................... 1693
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 437
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 97 Go on price comparison websites and see if you can change supplier for both gas and electric
Gas..................................... 60
Oil..................................... 0
Water rates............................. 49
Telephone (land line)................... 25
Mobile phone............................ 20
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 660 Meal plan in advance and try to reduce by at least £100 for the first month and then further each month.
Clothing................................ 60
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 19
Life assurance ......................... 0 You have three children - if something was to happen how will they be provided for? You must look into life insurance/assurance and though it may seem like you are throwing money away for nothing at least a safety net is there.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Do you not buy any presents at all?
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Home schooling costs.................... 30
Total monthly expenses.................. 1664

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
Budgeting loan.................812.......0.........0
Littlewoods....................1927......0........ .0
Nationwide card................2721......0.........0
Next card......................2146......0.........0
Nationwide overdraft...........200.......0.........0
Santander......................242.95....0........ .0
Santander......................35.24.....0........ .0
Total unsecured debts..........8084.19...0.........-

Monthly Budget Summary
Total monthly income.................... 1,693
Expenses (including HP & secured debts). 1,664
Available for debt repayments........... 29
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 29
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,084.19
Net Assets.............................. -8,084.19

You have said you spend £60 a month on clothing yet you seem to have a couple of really big debts on clothing company cards. Stop spending - - cut the cards up if that is the only way for you to stop.

Could your eldest two not get part time work and start paying rent (even as a token gesture).

cupcake83

Thankyou for your advice, no car is owned. My mother unfortunately cannot work due to back and neck problems, she also home schools the youngest. I will get her look into life assurance thank you for pointing that out.

With regards to clothing costs my mother use to rely on her accounts with littlewoods and next to get all clothing but has not used these cards in over 2 years and has not been able to meet minimum payments on these for months, as a result they keep being passed to different DCAs The only debts listed that she uses is the overdraft.

All these cards were taken out years go when my stepfather was working, he is now in prison this is also why there is no maintenance paid.

I will get her to look into gas and electric, she's on a payment meter so not sure how that works, she puts money on a key and card and then puts this in the meter.

My 16 year old brother has only just finished GCSE and is due to start college in September and will be training to be a special constable so finding a part time job is tricky for him. My 15 year old brother has tried to find a part time job but due to his age (they keep saying he needs to be at least 16) and limited jobs in our area he's not been successful.

As my mothers circumstances are unlikely to improve to health problems and the fact these debts are from years ago and even after paying for years there's little difference in the balances she feels that she needs to take drastic action such as a DRO or Bankruptcy. she's having to be prescribed sleeping tablets as she's not sleeping due to the stress.

debtfree2016

Hi Cupcake..
The meter rates for utilities is far higher than the standard contract. Is this a council property? if so i think they prefer you on meters to ensure utilitie bills are not put on the property. If its private rental then you maybe able to speak to your landlord, your water rates seem very high is this on a meter as well?
You will find help on this forum

cupcake83

debtfree2016 wrote: »

Hi Cupcake..
The meter rates for utilities is far higher than the standard contract. Is this a council property? if so i think they prefer you on meters to ensure utilitie bills are not put on the property. If its private rental then you maybe able to speak to your landlord, your water rates seem very high is this on a meter as well?
You will find help on this forum

Yes sorry it's a council property and yes the water is on a meter too.

Thank you

debtfree2016

Hi Cupcake

I would guess being coucil they will not allow you off the meters, you could speak to your local authority and ask the question, you really need to visit your local CAB office if you can instead of phoneing and take all the info with you with a pad and a pen for taking notes and writing quesions you may need to ask later. This forum will give you answers from people that have been and are in this your position but the best advice would be from the professionals.
I'm not telling you how to suck eggs but you could reduce your utility bills http://www.energysavingtrust.org.uk/Easy-ways-to-stop-wasting-energy any money saved in cost is as good as money in the bank
I wish the best of luck and well done you for taking control of a financial situation, keep posting

fatbelly

Looks OK to me - all within the trigger figures for a DRO.

Council Tax Benefit and Housing Benefit are included in 'benefits' - is that right?

And you have put the full amounts of rent and Ctax? Does the Ctax include the 25% single adult discount?

I find it easier to work with net rent and net ctax but I know others differ.

Who are you going to use for the DRO - the CAB? You really do need to make contact. If you can't get through on the phone, you may need to turn up on the doorstep or send in a letter.

You'll need £90 cash to pay the DRO fee at the post office. Have you read the DRO guide?

cupcake83

fatbelly wrote: »

Looks OK to me - all within the trigger figures for a DRO.

Council Tax Benefit and Housing Benefit are included in 'benefits' - is that right?

And you have put the full amounts of rent and Ctax? Does the Ctax include the 25% single adult discount?

I find it easier to work with net rent and net ctax but I know others differ.

Who are you going to use for the DRO - the CAB? You really do need to make contact. If you can't get through on the phone, you may need to turn up on the doorstep or send in a letter.

You'll need £90 cash to pay the DRO fee at the post office. Have you read the DRO guide?

Thank you so much for your reply. Yes housing benefit and council tax benefit are included in benefit figure along with child benefit, child tax credit and employment support and allowance. That's the full amount for both rent and council tax (she receives full benefit).

We went along to our local cab today and was given booklet on dro although the advisor confirmed this was the best action she explained they do not have an approved advisor and no other local agencies near us have, she has advised to contact another agency over the telephone CCCS or NDL. The advisor checked the SOA and seemed to think the house keeping was high and said may need to increase other things like travel to bring this down. Do you think the housekeeping is ok?

Also do you know roughly how long it takes till the application is submitted, she has payments due next week and if she doesn't pay these she will have most of the money for the £90 fee. She's worried about not paying them as if the DRO is not approved she will have charges as some are direct debits.

fatbelly

The trigger figure for housekeeping in that situation is £682 per month.

Housekeeping does include clothing (I missed that in my last post) so the adviser was right to say it's a bit high.

But your main issue is finding an Intermediary, who will tweak the figures anyway. I'm disappointed that the Cab couldn't have been a bit more directive. Guess you've got a bit of phoning around to do.

cupcake83

fatbelly wrote: »

The trigger figure for housekeeping in that situation is £682 per month.

Housekeeping does include clothing (I missed that in my last post) so the adviser was right to say it's a bit high.

But your main issue is finding an Intermediary, who will tweak the figures anyway. I'm disappointed that the Cab couldn't have been a bit more directive. Guess you've got a bit of phoning around to do.

Thank you for your help, just an update after much phoning and after speaking to CCCS, NDL and Baines & Ernst. Who all agreed that my mother qualifies for a DRO she has submitted an application with Baines & Ernst, has paid the fee and is just waiting for the advisor to check through credit file. Fingers crossed its submitted soon and approved.

summerstreetallotments

Dear Cupcake,
Just wanted to say I've been granted a D.R.O. via C.C.C.S. and the whole thing was sent in, approved and granted by the Insolvency service in 9 days..so the stress went very quickly...don't let people on here get you down...most people on this are lovely, but there are one or two who make really nasty cruel remarks (nearly topped myself over some of them )...if you can ...ignore this..once the D.R.O. is acceptable it's virtually over...darckling x