Can anyone help?x - SOA included

paulmapp8306

Problem is - Cinema, bowling alley, pub meals etc arnt possible when in debt - they are Luxuries really. Do we need them to survive?

My entertainment fund is £30/month for me the wife and 2 kids. That basically pays for the kids swimming lessons - plus any school trips that come up. They only go on those as its not fair for them to miss out when everyone else goes on them due to our debts.

I cant remember the last ime me or the wife went out of the house bar work, the weekly shop or the school run.

mumsnopennies

Hi x Ive just filled in an online questionaire with CCCs and they recommend carrying on with the payments that I agreed to when taking out the credit .
That seems quite the opposite of bankruptsy

JustinCredibleGillespie

freshstart11 wrote: »

I honestly can not see why they told you to go bankrupt.


Do the CCCS online debt action thing and see what they say xx

I have to agree with you Fresh. I dont think going bankrupt is a good idea, do you have any equity in your house that you could release to pay the debts? Thats what the OR might do and it'll be a terrible shock to your OH

Go with CCCS. Bite the bullet and do a DMP for the next 20 years if you have too.

JCG

xx

RAS

mumsnopennies wrote: »

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

Hi

You must get proper advice before you even think about bankruptcy given the equity in the house.

The mortgage is in OH's name, so I assume the deeds are in his name only?

Whilst you are making payments, even if you end up with CCJs the debt cannot be secured on the house if the deeds are in OH's name.

If you go bankrupt, the OR will consider if you have any beneficial interest (BI) in the house. The fact that your name is not on the deeds is not relevant; what matters is that you have lived there and may have put something into the house over the years. if that happened your husband would have to re-mortgage to release the money to pay your creditors or sell the house and re-pay the creditors.

You cannot be absolutely sure how BI will be considered by the official receiver but make absolutely sure that any advisor you speak to understand BI and understands that there is a lot of equity in the house.

You have to tell your husband what the situation is as you have to cut back severely on your household spends and you cannot do this if you are not tellinh him what is going on.

mumsnopennies

hi x Ive told my husband x He obviously knew something was wrong so I took the bullet and told him. Not sure if the best of timing or not as he has now left for work and wont be home till wednesday. He does'nt yet know the full extent but we are half way there. Ive just done a second questionaire on the cccs site as I had missed off one of my debts and this time they rccomend a DRP, they are emailing the paperwork to sign and then we can get started.
This has got to be the very start of a new beginning.
Thankyou for all advice so far xx

JustinCredibleGillespie

Well I wish you all the best! Make sure & come back and let us all know how your gettin on

JCG

xx

mumsnopennies

hi Ive recieved my drp by email and it states repayments of 632 pounds a month, is this the final decision ? could I not for instances pay less over a couple more years ?x

paulmapp8306

A DRP basically takes all your income, and all your outgoings at a reasonable level - minus unsecured debt. So, your electric, Gas, Car costs, food, clothing, perscriptions etc. ANYTHING LEFT is deemed as available to pay the debts. This plan is put to the creditors and they wont accept anything less than you can afford.

The only way to pay less/month is to re-do the SOA. Are the figures the same as you posted? as you have left things off that you need (even if you dont actually have them now) like the building/contents insurance, emergency fund etc.

Did you do the SOA as an individual or a couple. Doing iot as a couple will seriously damage you hubbies credit file - and you want to avoid that if possible. You could re-do the SOA ONLY including your benefits as income, but reducing food/clothing etc by half (as your hubbie would cover the other half).

Doing that, and pretty much halving all the outgoings (including the mortgage, to show you paying £160 rent towards the home), reducing your groceries to £300, but adding a little for contents/building ins and emergencies shows you with an outgoing of £966 against an income of £1145. That would leave £179 available to pay the debts per month.

Its reasonable to do this, as your hubby didnt know of any debts - and he pays for the house. you may be able to remove the mortgage all together (as its your hubbies debt) giving an extra £160/month - so a total of £339/month available. I think CCCS would be open to this - as would your creditors. My debt started at £42k and I was paying £350 as a lone debter even though I was married (renting though so included half the rent).

You need to speak to CCCS (rather than doing it online) and explain you need to do a sole SOA, and also to your hubby if you/CCCS decide you have to go down the joing route (CCCS shouldnt insist though) - as it will affect his lifestyle/choices as well if you do a joint DRP.

paulmapp8306

Something like this SOA would be a fair reflection for a sole SOA:


Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 4
Number of cars owned.................... 1

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

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 10
Mobile phone............................ 0
TV Licence.............................. 6
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 70
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 40
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..................... 20
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 791


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


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.................... 1,145
Expenses (including HP & secured debts). 791
Available for debt repayments........... 354
Monthly UNsecured debt repayments....... 691
Amount short for making debt repayments. -346

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. 0
Total Unsecured debt.................... -25,050
Net Assets.............................. 23,550

cutestkids

Before you do anything get buildings insurance if anything happens then you are going to be in an even worse situation, contents is a must also how are you going to replace things if something happens.

Everyone thinks that it won't happen to them until it does, if the worst happened you would be without a home or possessions, still paying the mortgage and still have all your debt.

Also not having insurance on your home can leave you wide open if someone has an accident on your property, you really need to do this before you do anything, I can not stress enough how important it is.