SOA advice please

tinamic

Hi Guys,

I'd be grateful if you could take a look at my SOA, I have been struggling for a few years now trying to avoid bankruptcy as I'm a self- employed member of AAT accounting body and won't be able to renew my licence.
I can't put it off any longer, so will just have to lapse my membership which is overdue for payment anyway and hope my clients are understanding.
For income purposes I've factored out my subcontract work which I will definately lose.I've also applied for employed work but know I wont get accounting work with a Bankruptcy order.
I have 3 sons, 2 are working and each paying £40 a month board and the youngest will be 16 this year,he will be leaving school and going to college.
I think I've been subconciously putting it off till they're all independant so they won't suffer for my mistakes.
I'm worried about getting into trouble for having taken so many loans when Ive known I'm in debt, but have just been trying to carry on regardless.
Now my rent is in arrears by £500 and they're taking me to court with a possession order, I've just had the summons today. I will pay the arrears at the end of this month but then can't pay wonga or anything else really.
I also don't know how I will find the fee for bankrupcy but I know I can apply to British Gas etc.
I have included an amount for tobacco, I have cut down already but will cut down more, I have suffered from stress and depression as well as alapecia before and I'm sure I will be affected badly if I just quit.Is it best to reallocate that somewhere?
Sorry to be so long winded,
Any advice welcome.
Thanks for reading,
Tina

Household Information[/b]
Number of adults in household........... 3 (2 adult sons at home)
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 834.5 Self employed after deducting tax)
Partners monthly income after tax....... 0
Benefits................................ 518.7 (Tax Credits & Child Benefit)
Other income............................ 80 ( Board from 2 adult sons)
Total monthly income.................... 1433.2

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 344.16
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 60
Gas..................................... 80 (These are on card meters so quite high)
Oil..................................... 0
Water rates............................. 0 (included in rent payment)
Telephone (land line)................... 70 (Virgin Media Phone TV & BB)
Mobile phone............................ 20
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 280
Clothing................................ 25
Petrol/diesel........................... 80
Road tax................................ 17
Car Insurance........................... 37
Car maintenance (including MOT)......... 22
Car parking............................. 0
Other travel............................ 42 (Bus fares school and social for youngest)
Childcare/nursery....................... 0
Other child related expenses............ 20 (Spends £5/week, tidying his room)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10 (1 dog)
Buildings insurance..................... 0
Contents insurance...................... 0 (can't afford it)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20 (For me & youngest)
Entertainment........................... 18 (Zumba fitness once a week)
Holiday................................. 20
Emergency fund.......................... 20
Tobacco................................. 60
School Dinners.......................... 35
Total monthly expenses.................. 1422.53


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Income Tax.....................1600......100.......0
NI.............................500.......500.......0
PROVIDENT LOAN.................1500......38.5......0
NATWEST OVERDRAFT..............2500......0.........0
NATWEST OVERDRAFT..............750.......0.........0
VODAPHONE......................1500......1500......0
NATWEST CARD...................1000......1000......0
3G.............................800.......800.......0
T MOBILE.......................400.......400.......0
KAYS...........................500.......500.......0
LITTLEWOODS ...................2500......2500......0
CAPITAL 1 CARD.................2500......1500......0
BARCLAYCARD CARD...............3500......1800......0
VANQUIS CARD...................250.......200.......0
STOCKPORT BULLION..............400.......40........0
QUICK QUID LOAN................194.......194.......0
WONGA LOAN.....................775.......775.......0
Total unsecured debts..........21169.....11847.5...-


Monthly Budget Summary
Total monthly income.................... 1,433.2
Expenses (including HP & secured debts). 1,422.53
Available for debt repayments........... 10.67
Monthly UNsecured debt repayments....... 11,847.5
Amount short for making debt repayments. -11,836.83

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,169
Net Assets.............................. -20,369

[Deleted User]

What did you say all of the phone contracts were for?

mildred1978

Why aren't your adult sons paying you more?

mildred1978

You could afford contents insurance if it weren't for the emergency and holiday funds. Where is the cash from those?

[Deleted User]

I can't understand why you would not keep your AAT, if this is what people want then they will go elsewhere, you saw it as important once so I don't understand a change. How much is AAT these days anyway? I didn't think it was that much.

I would also question bankruptcy, I think you have so many options other than this.

Are you fully qualified or only part at the moment?

I would be looking at how to deal with this and keep your AAT, you don't want to loose any income at all.

borkid

mildred1978 wrote: »

Why aren't your adult sons paying you more?

My thoughts as well, they should be paying at least 1/4 of the groceries bill each also 1/4 of the energy bills. Works out to about £100 per month which is still cheap as I assume they get laundry, cooking done, TV and BB paid for. On second thoughts it should be more than £100.

Mikazaru

tinamic wrote: »

Hi Guys,


Household Information[/b]
Number of adults in household........... 3 (2 adult sons at home)
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 834.5 Self employed after deducting tax)
Partners monthly income after tax....... 0
Benefits................................ 518.7 (Tax Credits & Child Benefit)
Other income............................ 80 ( Board from 2 adult sons) Do they work full time, if so can you ask for more?
Total monthly income.................... 1433.2

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 344.16
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 60
Gas..................................... 80 (These are on card meters so quite high)
Oil..................................... 0
Water rates............................. 0 (included in rent payment)
Telephone (land line)................... 70 (Virgin Media Phone TV & BB) Get rid, you can't afford.
Mobile phone............................ 20
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 280
Clothing................................ 25
Petrol/diesel........................... 80
Road tax................................ 17
Car Insurance........................... 37
Car maintenance (including MOT)......... 22
Car parking............................. 0
Other travel............................ 42 (Bus fares school and social for youngest)
Childcare/nursery....................... 0
Other child related expenses............ 20 (Spends £5/week, tidying his room)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10 (1 dog)
Buildings insurance..................... 0
Contents insurance...................... 0 (can't afford it) Stop the Zumba and get contents insurance instead...
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20 (For me & youngest)
Entertainment........................... 18 (Zumba fitness once a week)
Holiday................................. 20 Realistically you can't afford a holiday
Emergency fund.......................... 20
Tobacco................................. 60
School Dinners.......................... 35 Can they not take packed lunches
Total monthly expenses.................. 1422.53


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Income Tax.....................1600......100.......0
NI.............................500.......500.......0
PROVIDENT LOAN.................1500......38.5......0
NATWEST OVERDRAFT..............2500......0.........0
NATWEST OVERDRAFT..............750.......0.........0
VODAPHONE......................1500......1500......0
NATWEST CARD...................1000......1000......0
3G.............................800.......800.......0
T MOBILE.......................400.......400.......0
KAYS...........................500.......500.......0
LITTLEWOODS ...................2500......2500......0
CAPITAL 1 CARD.................2500......1500......0
BARCLAYCARD CARD...............3500......1800......0
VANQUIS CARD...................250.......200.......0
STOCKPORT BULLION..............400.......40........0
QUICK QUID LOAN................194.......194.......0
WONGA LOAN.....................775.......775.......0
Total unsecured debts..........21169.....11847.5...-


Monthly Budget Summary
Total monthly income.................... 1,433.2
Expenses (including HP & secured debts). 1,422.53
Available for debt repayments........... 10.67
Monthly UNsecured debt repayments....... 11,847.5
Amount short for making debt repayments. -11,836.83

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,169
Net Assets.............................. -20,369

Some comments above, your SOA is tight so have a look around the boards for tips on getting cheaper electric deals, insurance etc...

[Deleted User]

borkid wrote: »

My thoughts as well, they should be paying at least 1/4 of the groceries bill each also 1/4 of the energy bills. Works out to about £100 per month which is still cheap as I assume they get laundry, cooking done, TV and BB paid for. On second thoughts it should be more than £100.

I agree with you, if they are working full time. I would even go as far to say that they could help with this mess and then be paid back afterwards, if you work together everyone can win, lets face it savings are too low at the moment so there is more chance of them making more by helping out and being paid back with only a little extra later on.

Skintandstressed

Hi Tinamic,

I totally understand your concerns re AAT, I was an AAT MIP and I'm still an ACCA member, and he rulebooks on insolvency / bankruptcy etc are really quite daunting.
At the same time I agree with assj - you cannot afford to lose the income!

The AAT used to have reduced rates available for people in hardship, perhaps you could enquire?
Also maybe contact them and find out from the horses mouth where you will stand in any potential scenario - you need to be able to make an informed decision.

Do you have a good relationship with your emergency cover MIP (I forget the AAT terminology for it) - could you maybe come to an agreement with them where you can subcontract your existing clients from them for a small fee and then forego your license?

Have you registerd with Hays and the other agencies or maybe thought about taking on temp work?

Could you contact any local accountancy firms to see if they have any sub contract work available?

Skintandstressed

Are the values on your unsecured debts correct - the minimum payments do seem rather high?

DVardysShadow

Yes, monthly amounts on unsecured debt are plainly wrong. OP, could you go back and fix those? The total monthly is quite an important figure to have right in assessing the way forward.