Is Bankruptcy an option??

madmich666

Here is my SOA. The reason we are here now is that they have cut all benefits for this year and it has totally messed things up.

ousehold Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1231.04
Partners monthly income after tax....... 1041.78
Benefits................................ 159.6
Total monthly income.................... 2432.42[/b]


Monthly Expense Details
Mortgage................................ 400 - we are trying to get this on interest only
Management charge (leasehold property).. 110
Council tax............................. 100
Electricity............................. 114 - no gas at the property
Water rates............................. 40
Mobile phone............................ 91 - tryig to reduce these
TV Licence.............................. 12.12
Satellite/Cable TV...................... 56 - being cancelled although I need internet for studying I am doing through work
Groceries etc. ......................... 380
Clothing................................ 30
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 33.91
Car maintenance (including MOT)......... 20
Childcare/nursery....................... 780
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 34.9
Contents insurance...................... 9.79
Life assurance ......................... 16.27
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 10
Emergency fund.......................... 10
Lottery................................. 13
Slimmingworld........................... 25 - doc has advised me to go and I find that I struggle if I dont. I have a health problem which is the reason for loosing weight.
Cigarettes etc.......................... 20 - trying to give up
Cat food................................ 100
Total monthly expenses.................. 2725.99

Assets
Cash.................................... 0
House value (Gross)..................... 50000
Shares and bonds........................ 30
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 50530

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 76000....(400)......0
Secured Debt.................. 13187....(0)........0
Total secured & HP debts...... 89187.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Maintenance....................1450......0.........0
Ground rent ...................547.......0.........0
Experto........................179.71....0.........0
Water..........................325.......0.........0
Nursery fees...................1700......20........0
SCM - CCJ......................6032.07...15........0
Wescot.........................531.28....0.........0
Old Insurance..................17.5......0.........0
Moorcroft......................1768......0.........0
Total unsecured debts..........12550.56..35........-

Monthly Budget Summary
Total monthly income.................... 2,432.42
Expenses (including HP & secured debts). 2,725.99
Available for debt repayments........... -293.57
Monthly UNsecured debt repayments....... 35
Amount short for making debt repayments. -328.57
Personal Balance Sheet Summary
Total assets (things you own)........... 50,530
Total HP & Secured debt................. -89,187
Total Unsecured debt.................... -12,550.56
Net Assets.............................. -51,207.56

I know some of the stuff on here is not needed but I have put the situation as it is now.

the other thing to mention is that we owe money to our landlord and the management company and they are now threatening us with a Section 146 Notice of the Law of Property Act 1925 (as amended bla bla bla). Basically the landlord wants to issue a forefiture notice and I have contacted the management company about making monthly payments (not that we really can afford it) but they said that they would still go ahead and issue the notice - Not sure if they need LVT determination or not but cannot see in our lease that it states the management company charges are to be classed as rent.

one thing that someone mentioned was bankruptcy but not sure if that is the best option - although we would be able to move in with family if we were made homeless.
Any help would be very much apreciated.

IF

Hi madmich666 and welcome to the BR board. I'm hopeless at SOA's and I'm sure others will help there.
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.
Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

* 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.


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

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

Best wishes
IF...x

madmich666

Thank you for that. Have tried stepchange and national debt helpline but uave just been told to give them a call when my situation improves which wasnt really helpful . Seeing the CAB in two weeks so think I will wait to see what they have to say.

Thanks again

MM xx

Credit-Crunched

Your debt is manageable if you look to cut some costs, speak to your mortgage provider.

They would rather switch to i/o than face a bankrupcy situation.

Sorry to be harsh but these things need to change

£100 a month on cat food - look for cheaper
£13 lottery - stop this luxury
£20 - quit smoking
£25 - slimming world, you dont need to paysome to exercise or eat healthily, train hard, eat clean
£380 on grocertes can be cut
£91 - on a mobile, what do you mean by trying?

margaretk

I agree with the reply above. I have a very fussy cat and I spend nowhere near that on cat food. If you already have the Slimming World books, you don't need to go to the class - get weighed in front of your family and that will give you an incentive to keep to the diet. Buy 2 Health Lottery tickets each week and that will cost you £8 a month (less than what you pay), get a Pay as You Go sim for your mobile and definitely give up smoking - that way you can cut down on your spending without having to give up all of your treats.

ThriftyShelly

Hi,
Sorry to hear things are really difficult, noticed you spend about 80% of one of your wages on childcare, if one of you gave up work what would you get in benefits for the one wage? You may find that you would be better off not working! Also re the slimming world, I have done this from home recently and lost a stone and a half without lining anyone else's pockets! My friend gave me her old books and I got a lot of support off the thread about slimming world on here
Best Wishes

luvchocolate

As this thread is 8 months old it would be useful if the op came back with an update which would help with the advice we give.