Can anyone help?x - SOA included

mumsnopennies

Where to start?
Im seriously in debt, to the tune of 25.000. One debt being a loan of 13.000 and the rest is on various credit cards.
Im married with four children , my husband is self employed and im not working. I receive 1000 a month in benefits and virtually all of it goes on repaying my debt.
We have a mortgage which has only 5 years left.
The end of the month arrives now and I havent enough left in the bank to cover the direct debits so I draw cash out on my credit cards to put in the bank and the circle goes round and round.
I finally got my head out the sand and went to the citizens advice , he filled out a SOA (i think thats what it was) and told me I qualified for legal aid and told me to come back next week . I asked him does he think they can help me and he said probably yes , he said you will have to declare yourself bankrupt as il never be able to pay back what I owe with what I have coming in .
After reading more about bankruptsy on these forums I wondered is that the best option??
In my stupidity I thought I could close the accounts and arrange a repayment plan or something similar?
My husband has started his own little business and is bringing home about 300 a week and knows nothing whats so ever about my debts
Has anybody any advice for me ?
The mortgage is in my husbands name and the debts are in mine - if I went bankrupt could they take our home?:(

Little_Miss_Uni-Debt

Hello Mumsnopennies,

First of all, welcome & well done for posting! You'll get lots of great advice coming your way if you stick around here.

I think for anyone to give you accurate advice it is best if you fill out another SOA and copy & paste it up here. The template is here http://www.makesenseofcards.com/soacalc.html

Perhaps if you contacted the CCCS they would advise whether you have enough spare income to start a free debt management plan. It's always good to get a second opinion.

mumsnopennies

Can i ask who is CCCS? Il go do the SOA now, thanks for replying x

Squirrel29

Hi, I owed nearly as much as you with a bit less coming in and found that I was doing the same re drawing cash on CCs. Sooner or later the available credit runs out and you are stuck. I went on debt mgt plan with Payplan (CCCS is the same) and its been a saviour. As soon as I made that call I felt in control and able to breath again.

mumsnopennies

Thank you so much, very humbling this owning up to yourself business isn't it x
Would you wait to see what the citizens advice say on my next appointment (Im to return forms on Monday and be given a new appointment date there and then ) or go ahead and contact payplan on Monday regardless?x

mumsnopennies

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1200
Benefits................................ 1145
Other income............................ 0
Total monthly income.................... 2345

Monthly Expense Details
Mortgage................................ 325
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 80
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 600
Clothing................................ 40
Petrol/diesel........................... 140
Road tax................................ 30
Car Insurance........................... 80
Car maintenance (including MOT)......... 80
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 16
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1818


Assets
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 81500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 22000....(325)......0
Total secured & HP debts...... 22000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................12000.....264.......0
barclay card...................7000......189.......0
mbna...........................2000......60........0
mothercare.....................450.......8.........0
next store card................1000......100.......0
tesco card.....................1000......30........0
debenhams......................1600......40........0
Total unsecured debts..........25050.....691.......-


Monthly Budget Summary
Total monthly income.................... 2,345
Expenses (including HP & secured debts). 1,818
Available for debt repayments........... 527
Monthly UNsecured debt repayments....... 691
Amount short for making debt repayments. -164

Personal Balance Sheet Summary
Total assets (things you own)........... 81,500
Total HP & Secured debt................. -22,000
Total Unsecured debt.................... -25,050
Net Assets.............................. 34,450

rising_from_the_ashes

Few comments on your SOA below:

mumsnopennies wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1200
Benefits................................ 1145
Other income............................ 0
Total monthly income.................... 2345

Monthly Expense Details
Mortgage................................ 325
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 80 This is really high - does it incl arrears? If not, check your readings against bills to ensure they're accurate & comparison sites to make sure you're getting the best deal. Also, check that you're not using appliances that eat elec a lot (eg tumble drier) and not leaving things on unnessarily
Gas..................................... 60 As above
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 20
Mobile phone............................ 45 Is this contract? When does it end - switch to PAYG & use for emergencies only
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 600 This is high (even with 4 kids) - try the Grocery Challenge on the Old Style board for tips. Friendly bunch of posters with great tips & some fantastic recipes:) - I'm sure you could get £100 off this with some practice
Clothing................................ 40
Petrol/diesel........................... 140 See below
Road tax................................ 30 "
Car Insurance........................... 80 "
Car maintenance (including MOT)......... 80 "
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 Need this ASAP
Contents insurance...................... 0 As above
Life assurance ......................... 16
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 Sorry to high - try to reduce a bit
Haircuts................................ 20 Can you / friend / relative cut the kids hair?
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0 Need something in here
Total monthly expenses.................. 1818


Assets
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 81500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 22000....(325)......0
Total secured & HP debts...... 22000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................12000.....264.......0
barclay card...................7000......189.......0
mbna...........................2000......60........0
mothercare.....................450.......8.........0
next store card................1000......100.......0
tesco card.....................1000......30........0
debenhams......................1600......40........0
Total unsecured debts..........25050.....691.......-


Monthly Budget Summary
Total monthly income.................... 2,345
Expenses (including HP & secured debts). 1,818
Available for debt repayments........... 527
Monthly UNsecured debt repayments....... 691
Amount short for making debt repayments. -164

Personal Balance Sheet Summary
Total assets (things you own)........... 81,500
Total HP & Secured debt................. -22,000
Total Unsecured debt.................... -25,050
Net Assets.............................. 34,450

Some cuts suggested above but and I know how hard this will be - you really need to come clean to your OH. I know the thought is awful and terrifying but you can't deal with this alone & it's bound to affect your health and relationship.

Do you have any joint accounts / bills with your OH? (note mortgage is in his name).

savvykaz

Hi and welcome :j

Just a couple of things jump out to me.
Firstly, do you need to spend £600 a month on groceries :eek:; this is a lot despite having 4 children, lots of people on here feed families on a lot less, take a look at the old style board.
Also, do you really only spend £600 a year on all birthday and Xmas presents? With 4 children that seems a little low, are you underestimating what you actually pay?

We've just had our LBM and have contacted CCCS and set up a DMP; we've had all our interest and charges frozen and we are now starting to pay our debts, not just the interest on them . We too were withdrawing money from CCs but when you see what you are charged for doing so it's frightening. I would advise you did go back to CAB but mention to them you have heard about doing a DMP and what they think to this [look on CCCS website first].

Good luck with whatever you do

rising_from_the_ashes

Have a read through this thread https://forums.moneysavingexpert.com/discussion/3899213 about others experiences of telling their OH and the outcome - honestly you will feel so relieved to get it out in the open as it's bound to be affecting you.

You need to deal with this together - even if the debts are in your name and you do something like a DMP - you need the support of your OH. Best of luck

Squirrel29

If it were me I'd just get on with contacting a debt mgt company (make sure you use free one like Payplan and CCCS) as I think CAB are really busy and you may have to wait a while. Are you going to tell your DH? I'm just thinking that if you have debts with a company that linked to your bank account they can take money out to service the debt. When you go on DMP you are advised to get new account That has no connection to your creditors. Wasn't sure if you shared account with him?

HappyMJ

I think your SOA is OK. As you are looking at bankruptcy you need to increase some figures.

A family of your size would get £1667.50 per month in benefits plus rent/mortgage and council tax in your case that's another £425.00. If you could increase your family expenses to a combined £2092.50 then the BR would go through with no problem at all with no further payments to make. On a BR SOA your OH's contribution to the household expenses would reduce to £947.50 but then you would not include his own expenses such as his own mobile.

Make sure you already have no interest in the property. You said the mortgage in is your OH's name. Does that include the title to the property as well.