End of my tether

Hull_Tiger

Hi,
Hoping for a bit of advice.
My IVA failed earlier this year and the failure notices only went out in October. I'm now starting to get hassle from creditors and think I'll need to go bankrupt soon. Dryden Fairfax are being particularly painful ringing 6 or 7 times a day, up to 21:00 and refusing to accept a token payment until I can save the bankruptcy fee.
I've been to see the local CAB who weren't particularly helpful. I got the feeling she didn't really know what she was doing. She gave the following SoA for bankruptcy but it seems unduly harsh. Any feedback would be extremely appreciated.
I'm married with children aged 3 and 18 months.

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....................................0
Monthly Income Details
Details
Monthly income after tax................................£ 1,220.00
Partners monthly income after tax.......................£ -
Tax Credits............................................£ 420.17
Child Benefit..........................................£ 134.80
Other income...........................................£ -
Total monthly income....................................£ 1,774.97
Monthly Expense Details
Details
Mortgage................................................£ -
Secured/HP loan repayments..............................£ -
Rent....................................................£ 304.00
Management charge (leasehold property)..................£ -
Council tax.............................................£ 90.00
Electricity.............................................£ 45.00
Gas.....................................................£ 50.00
Oil.....................................................£ -
Water rates.............................................£ 28.90
Telephone (land line)...................................£ 15.00
Mobile phone............................................Not allowed
TV Licence..............................................£ 12.12
Satellite/Cable TV......................................£ -
Internet Services.......................................Not allowed
Groceries etc...........................................£ 257.00 CCCS guideline
Clothing................................................£ 40.00 CCCS guideline
Petrol/diesel...........................................£ -
Road tax................................................£ -
Car Insurance...........................................£ -
Car maintenance (including MOT).........................£ -
Car parking.............................................£ -
Other travel............................................Not allowed Apparently I'll be expected to walk / bike to work
Childcare/nursery.......................................£ -
Other child related expenses............................Not allowed
Medical (prescriptions, dentistetc)....................£ 10.00
Pet insurance/vet bills.................................Not allowed
Buildings insurance.....................................£ -
Contents insurance......................................£ 26.00
Life assurance.........................................Not allowed
Other insurance.........................................£ -
Presents (birthday, christmas etc)......................£ -
Haircuts................................................£ 30.00
Entertainment...........................................£ -
Holiday.................................................Not allowed
Emergency fund..........................................Not allowed
Total monthly expenses..................................£ 908.02

Assets
Cash....................................................£ -
House value (Gross).....................................£ -
Shares and bonds........................................£ -
Car(s)..................................................£ -
Other assets............................................£ -
Total Assets............................................£ -
No Secured nor Hire Purchase Debts
Debts
Description
All debt................................................£ 48,000.00
Total unsecured debts...................................£ 48,000.00
Monthly Budget Summary
Summary
Total monthly income....................................£ 1,774.97
Expenses (including HP & secured debts).................£ 908.02
Available for debt repayments...........................£ 866.95
Monthly Unsecured debt repayments.......................£ -
Amount left after debt repayments.......................£ 866.95
Personal Balance Sheet Summary
Summary
Total assets (things you own)...........................£ -
Total HP & Secured debt.................................£ -
Total Unsecured debt....................................-£ 48,000.00
Net Assets..............................................-£ 48,000.00

Anondebtadvisor

Hmmm... interesting! Dont worry to much about the advice you have received. they seem to be taking the very very lowest CCCS guidelines.

Max CCCS guidelines for food & Toiletries is £505, Clothes & Footwear £83, add travel at whatever it costs you, Hairdressing £32, Emergencies £45 and holidays/sports & entertainment £46

Anondebtadvisor

Is you older child going to go to playgroup or nursery? If so add this in also

Bankruptcy is not a prison sentence........Tut Tut

Hull_Tiger

Thank you for that. Does anybody know about internet? CAB told me there is no provision for internet access. Isn't that now a basic living requirement according to the Govt?

Anondebtadvisor

Add in telephone and internet, do you have a telephone package?

Hull_Tiger

Anondebtadvisor wrote: »

Is you older child going to go to playgroup or nursery? If so add this in also

Bankruptcy is not a prison sentence........Tut Tut

He goes to nursery 4 mornings a week but that is free.

Anondebtadvisor

Ok i just wondered as it can be included as an expense if you pay for it.

Hull_Tiger

Anondebtadvisor wrote: »

Add in telephone and internet, do you have a telephone package?

Not currently. The only telephone company in Hull is Kingston Communicatons who offer bundles but with a minimum 18 months contract. I loathed to do that at the moment due to another potential problem which I needed advice on.

At the moment, the house we live in has 6 months lease left on it. It was bought from us by a housing association when we hit our financial troubles as we couldn't afford the mortgage. They have hinted that it is possible they may seel or auction the property when the lease has finished which may force us to move.
My questions:

(a) If we are told we need to move out, would an increase in rent (and possibly council tax) be allowed by the OR? The bare minimum for a similar property in Hull is £500 / month.

(b) If we can stay, the rent will definitely rise as it is currently held at a lower rate as part of the mortgage rescue. Would the OR have any problem with that?

The lady at CAB said they would probably agree to the rent increase as long as it isn't excessive but there is no way they would allow us to move into a more expensive property and would need to find a property in the same price range, which would be a one bedroom flat.

debt_doctor

Hi,

Thats a strange experience you had at Hull CAB. I have visited Hull CAB, can you remember which office it was?

DD

OutofDebt-NOT-OutofDanger

Hull_Tiger wrote: »

At the moment, the house we live in has 6 months lease left on it. It was bought from us by a housing association when we hit our financial troubles as we couldn't afford the mortgage. They have hinted that it is possible they may seel or auction the property when the lease has finished which may force us to move.
My questions:

(a) If we are told we need to move out, would an increase in rent (and possibly council tax) be allowed by the OR? The bare minimum for a similar property in Hull is £500 / month.

(b) If we can stay, the rent will definitely rise as it is currently held at a lower rate as part of the mortgage rescue. Would the OR have any problem with that?

The lady at CAB said they would probably agree to the rent increase as long as it isn't excessive but there is no way they would allow us to move into a more expensive property and would need to find a property in the same price range, which would be a one bedroom flat.

This is correct.

As long as any future rent is in line with the local market rates and you rent a property which is reasonable for your needs then the OR will allow the rent.

Might be worth mentioning the current rent situation so that they are aware of it to start with.

Also, does your current property have a deposit to be returned to you or will you have to save this?

debt_doctor

Hull_Tiger wrote: »

Not currently. The only telephone company in Hull is Kingston Communicatons who offer bundles but with a minimum 18 months contract. I loathed to do that at the moment due to another potential problem which I needed advice on.

At the moment, the house we live in has 6 months lease left on it. It was bought from us by a housing association when we hit our financial troubles as we couldn't afford the mortgage. They have hinted that it is possible they may seel or auction the property when the lease has finished which may force us to move.

Is that Chevin Housing Association?

DD