We have no choice !

jessie-jane

We took advice from CAB in 2010 and they cofirmed our only option was BR, in the mean time they sent letters to our creditors and offered token payments which we have been paying ever since.
I have done a SOA and as you can see we have no way of saving for the BR fees and have only just found out about the charities that may be able to help..going back to CAB in april to look through these options.
A little background about us 2 adults and 1 teenagers going off to uni in sept. OH works full time and i work part time, due to having a back condition ( so days worse than others ) never no from one day to next what back is going to be like, off to c consultant again soon, hopefully a new wonder drug to be pain free would be great.

All the depts have built up over the years when OH used to deal with the finances ...BUT I now do this and have done for the last 21/2 years.
Just have a couple of questions would we beter both going BR as i owe approx 14500, OH owesapprox 46000, including 1 joint overdraft, wondered about DRO for myself and BR for OH.
We didnt take advice and thought the best option was to sell our home and rent back , so we could pay off all our debts...unfortunately we didnt know about full anf final and so paid off as much as we could but this still left balances outstanding hence the mess we are still in now....my head is a real mess at mon and just want it all straight for once and for all.

sorry for the waffle but its defo good to talk.
vStatement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 430
Partners monthly income after tax....... 1280
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 1790

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 53
Gas..................................... 55
Oil..................................... 0
Water rates............................. 41.74
Telephone (land line)................... 20
Mobile phone............................ 15
TV Licence.............................. 13.75
Satellite/Cable TV...................... 22
Internet Services....................... 13.5
Groceries etc. ......................... 440
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 22.62
Car maintenance (including MOT)......... 10
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 8.74
Life assurance ......................... 0
Other insurance......................... 9
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 5
Holiday................................. 30
Emergency fund.......................... 20
Total monthly expenses.................. 1678.35


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
littlewoods....................0.........10........0
next...........................0.........5.........0
rbs cc.........................0.........19........0
rbs overdraft..................0.........5.........0
rbs gold cc....................0.........7.........0
eos............................0.........1.........0
tesco cc.......................0.........10........0
mint...........................0.........6.........0
mbna...........................0.........1.........0
tsb............................0.........16........0
egg............................0.........6.........0
capital one....................0.........11........0
car loan.......................0.........8.........0
resolve........................0.........3.........0
Total unsecured debts..........0.........108.......-


Monthly Budget Summary
Total monthly income.................... 1,790
Expenses (including HP & secured debts). 1,678.35
Available for debt repayments........... 111.65
Monthly UNsecured debt repayments....... 108
Amount left after debt repayments....... 3.65

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

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

jessie-jane

we dont own the car its on a car loan but we have a very old caravan worth 800, which we would have to sell and buy car with .

meer53

Can't offer any help, i'm sure someone will be along soon who can.

But, just a thought, when your teenager goes off to Uni, you'll lose your child benefit, i'm assuming this is what the £80 benefit is you've included in your SOA ?

I havent posted this to depress you, i posted because i got caught out with this when my son went to Uni, i ended up having to pay back 5 months worth of Child Benefit. Wouldn't you be entitled to any Working tax credits at the moment ?

somethingcorporate

The figures appear to show you at breakeven at the moment... is this really the case?

jessie-jane

oh no way thought they still got child benefit while at uni, but then again our food budget should go down ! We are not entitled to any other benefits cause OH worked alot of over time last year ( which isnt available this year the same, so our combined earnings were approx 26500 for the year .

fermi

I would assume from those figures that the unsecured debt payments represent token or minimum ones? i.e. not really sustainable even if technically breaking even?

dancingfairy

This might sound crazy but since you have over 100 a month spare after paying your essentials why have you not just sent token payments of 1 pound to your creditors and just gone bankrupt?
You could have a good chunk of the money saved up by the time you even approach the CAB again.
I'm not really sure what you're waiting for?
df
Edit: if you stop paying what are the companies going to do? They may even make you bankrupt so you don't have to

ejc81

jessie-jane wrote: »

we dont own the car its on a car loan but we have a very old caravan worth 800, which we would have to sell and buy car with .

Does that mean the car is on HP? Just you have car loan at £8 in your SOA? If it was a HP agreement surely they would have repossed it by now? Or is this £8 just another unsecured loan and therefore you do own the car? It doesn't make sense to me above?

jessie-jane

Sorry for the confusion over the car, it is a car loan we do not own the car yet as havent finished paying it off.

As for paying the token payments ,this is what the 100 excess is covering at the min so we have no spare money to save to go BR.
All of the creditors have and are still happy to accept the token payments ,,,,but we are just treading water and not getting anywhere !
What happens if a creditor makes us bankrupt ?

fermi

jessie-jane wrote: »

What happens if a creditor makes us bankrupt ?

Same as if you did it yourself all important purposes.

However, unless you owe money to HMRC, some particular trade creditors, or having whopping amounts of equity, then there is no reason for a creditor to do so. In fact, they would be daft to do so.

If you are certain BR is the way to go then even that £100 per month in token payments may be wasted money that could get you to the BR fees quicker?

patman99

You need to look at ditching Sky. I believe you will not be allowed subscription TV if/when you go br.
Also, £440 a month to feed 3 is an awful lot. We feed 3 for £200 a month (and that includes cleaning products as well).
Your SoA doesn't divulge how much you owe to each creditor. I guess that even by freeing-up £240 p/m, you would still struggle to pay-off your creditors one at a time. However, this amount would enable you to save the br fee in 4 months or so.