Soa

UpTheCreek_2

Hi

We are thinking of going into bankruptcy after being in an IVA for a couple of years. Our circumstances have changed and I no longer earn very much money and can't afford the IVA repayments. Does this SOA look suitable for bankruptcy?
Thanks

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 550
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1900

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 152
Electricity............................. 76
Gas..................................... 0
Oil..................................... 40
Water rates............................. 0
Telephone (land line)................... 34
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 33.25
Internet Services....................... 32.3
Groceries etc. ......................... 346
Clothing................................ 20
Petrol/diesel........................... 220
Road tax................................ 35
Car Insurance........................... 100
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 21
Buildings insurance..................... 0
Contents insurance...................... 6
Life assurance ......................... 12
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 25
Holiday................................. 10
Emergency fund.......................... 30
Total monthly expenses.................. 2099.55


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
IVA............................30000.....170.......0
HSBC...........................11100.....300.......0
Overdraft......................1500......125.......0
Total unsecured debts..........42600.....595.......-


Monthly Budget Summary
Total monthly income.................... 1,900
Expenses (including HP & secured debts). 2,099.55
Available for debt repayments........... -199.55
Monthly UNsecured debt repayments....... 595
Amount short for making debt repayments. -794.55

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -42,600
Net Assets.............................. -38,600

The IVA was mine, my husband has therefore built up debts since my income dropped and now we both want to declare ourselves bankrupt.

dancingfairy

Have you spoken to the IVA people? they might allow you to reduce your payments (this is especially worth doing if you are near the end of your plan). They have scope to vary it by up to 10% without calling a creditors meeting but if you are circumstances have changed then you can have a new creditors meeting or perhaps you can offer a lump sum to finish the IVA early?
Don't discount it just yet.
df

dancingfairy

Edit: just noticed that without debt repayments you are still spending nearly 200 a month more than you have coming in. You're going to need to address this.
You can't really afford to run a car, sorry and you'll need to look at cutting all the costs you can, including food.
Can you move and rent somewhere cheaper?
df

UpTheCreek_2

The IVA company have already reduced the payments and said they couldn't reduce them any further. We live in a very rural area and my husband needs a vehicle for work and I would be completely cut off if I didn't have a vehicle. (The small amount I earn also depends on it)
If we moved to a cheaper property we probably wouldn't have room. It's a very expensive area

exarmydreamer

Do you receive any benefits, I can't see any child benefit.

UpTheCreek_2

We get child benefit at £134 a month. Thanks! Missed that. I am hoping that we should get some tax credits (although only a small amount) come April when the tax year starts again.

PippaGirl_2

UpTheCreek wrote: »

Does this SOA look suitable for bankruptcy?
Thanks

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 You will need to justify the need for 2 cars, if public transport is cheaper to get to work they may expect that

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 550
Benefits................................ 0 Child benefit?
Other income............................ 0
Total monthly income.................... 1900

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800 If your expenditure exceeds your income maybe downsizing will be needed?
Management charge (leasehold property).. 0
Council tax............................. 152
Electricity............................. 76
Gas..................................... 0
Oil..................................... 40
Water rates............................. 0
Telephone (land line)................... 34 That's very high
Mobile phone............................ 45 That's too high.
TV Licence.............................. 12
Satellite/Cable TV...................... 33.25 Usually only a basic package is allowed if at all.
Internet Services....................... 32.3 Way too high
Groceries etc. ......................... 346
Clothing................................ 20
Petrol/diesel........................... 220
Road tax................................ 35
Car Insurance........................... 100 I take it this if for both cars? Therefore is the petrol & road tax also for 2 cars?
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 21
Buildings insurance..................... 0
Contents insurance...................... 6
Life assurance ......................... 12
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 25
Holiday................................. 10
Emergency fund.......................... 30 Too high
Total monthly expenses.................. 2099.55


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000 Generally if the OR deems that you need a car (or both) the value allowed for each is around £1000 if a car is worth more it may be taken and sold from which you would be allowed £1000 to purchase a new car.
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
IVA............................30000.....170.......0
HSBC...........................11100.....300.......0
Overdraft......................1500......125.......0
Total unsecured debts..........42600.....595.......-


Monthly Budget Summary
Total monthly income.................... 1,900
Expenses (including HP & secured debts). 2,099.55
Available for debt repayments........... -199.55
Monthly UNsecured debt repayments....... 595
Amount short for making debt repayments. -794.55

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -42,600
Net Assets.............................. -38,600

The IVA was mine, my husband has therefore built up debts since my income dropped and now we both want to declare ourselves bankrupt.

There are a lot of ways you could cut your expenditure down which might help you afford the IVA and might have been why your IVA failed. Sky TV/landline/Unlimited internet is around £45 and for those 3 things you are currently paying £99.55 which is astronomical.

UpTheCreek_2

Thanks, Pippagirl. I'm fully expecting they will ask us to get cheaper cars Public transport doesn't exist here! The broadband/Phone etc is a tricky one because I am tied in until February when I will definitely look to change. We are unable to get good reception on Freeview here, hence why we pay out for Sky.
Downsizing isn't really an option as we already fill the space we have (and my eldest son still comes home from uni in the holidays and takes up even more! Plus, we don't have the money to pay for the deposit even if we wanted to! Catch 22!

PippaGirl_2

Contracts agreed to before BR become null and void on going BR. Most people choose to discontinue paying their mobile phone contract for instance and just pop a payg sim in your phone which saves a lot of money. I would stop anything non essential for now, once you are BR that is. Atm your expenses are over your income so I don't think you have a choice.