urgent advice please time running out.. income declaration on statememt of affairs ??

katrina89

Hello,
I am new to the forum and desperately need some advice !My son is a student and up to his neck in debt cards loads overdrafts not to mention student loans. He has decided to declare himself bankrupt, ( i realise student loans do not get written off ) as his debt( not inc student loans ) is in excess of 17000 and it is making him ill with worry to the point where if he is not careful he will have a breakdown and ruin his chances of getting a degree.

My question is on completing income and expenditure on the statement of affairs.
His allowable living expenses total £785 a month the bulk of that being a rent on a student house that is payable throughout the year. His income is made up of student income of £500 a month and a summer job which he has confirmation of employment in letter form which will run from end may to sept..this income averages out at 325 a month. this gives him income of 825 a month against outgoings of 785 a month.
He wants to include the summer job details because he knows that he will be earning this money and needs it to survive each month as demonstrated in the outgoings on his statement of affairs. Will the judge accept this future income or will he fail it because he hasnt started the job yet ?? This is my big worry because obviousley without this job on paper my son is still insolvent even with the 17000 written off. if this happened what an earth would he do ? There must be many others like my sons situation..what do they put down?

He has an appointment to present his petition next week so i really need some advice here !

Thank you so much
Kat

minic

Hi,

The SOA should reflect his current incomings/outgoings. How is he making up the shortfall now (or is this currently going on credit?) and how will he make up the shortfall between going BR and May when he starts his job when he'll find it pretty much impossible to get credit?

The BR forms allow as far as I recall some room for any comments/additional info to be made. Your son could detail here about his summer job and explain that is how he will cover the shortfall in his incomings vs outgoings.

The OR is the person who will decide if an IPA is applicable. Going off what you have said in your post it seems there is no available income to contribute towards an IPA however when he starts his job in May he will need to inform the OR who will then ask him to complete another SOA form to determine if an IPA should be applied.

I'm not sure if there are any student incomes that are not taken into consideration when determining an IPA or not but I'm sure someone who knows will be along soon who knows about these things.

M.

tigerfeet2006

Hi and Welcome to the Bankruptcy (BR) Board. Has he actually taken any advice on BR at all? First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *
Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Please don’t do anything rash take your time and weigh up your options and read everything you can.

We often ask you to post your SOA so we can see if you have included what you need to:-
MSE SOA Calculator - Click here
Select the MSE format at the end. Copy and paste onto your thread.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Beth's Guide Reasons for your BR

Charities who help with BR Fees

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
TF...x

katrina89

Hi there,
thank you so much for the info, i have pasted an SOA up for you to look at.
He did get advice from stepchange and the advice was to declare himself bankrupt but they only wanted him to include his student income which is 500 a month on the soa because he doesnt start his summer job until end of may. this presents him in a very insolvent situation which surely would fail his bankruptcy. surely it is correct to declare his summer job which then shows that with his huge debt of 17k removed he can still break even on a month to month basis..as in 46 quid left a month ?? as per SOA ??

I am panicking because his appointment with judge is next tuesday !!!!!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 825
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 825
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 376
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 35
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 3
Satellite/Cable TV...................... 0
Internet Services....................... 6
Groceries etc. ......................... 190
Clothing................................ 15
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 64
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 779
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
cards and loads ...............17000.....300.......12
Total unsecured debts..........17000.....300.......-

Monthly Budget Summary
Total monthly income.................... 825
Expenses (including HP & secured debts). 779
Available for debt repayments........... 46
Monthly UNsecured debt repayments....... 300
Amount short for making debt repayments. -254
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,000[
Net Assets.............................. -17,000
]