SOA Help

Drum_Master

Hi all,

I am in a situation where I am seriously considering bankrupptcy, for the backstory please view http://forums.moneysavingexpert.com/...8019&highlight=

From the advice I recieved I have filled in an SOA and will attatch below. I would be gratful of any advice regarding expenses on it and what else I can include to free up potential personal allowances and to ensure I have enough to 'really' live on. Especially in cas eof emergency (old car) or various other issues.

Any more insight you can give would as alwats be appreciated. How does the IPA fully work? I understand that it is personal to each controller but how generous are they usually? do they understand some of your needs?

Warm regards

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 56
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 12.5
Telephone (land line)................... 0
Mobile phone............................ 26
TV Licence.............................. 6
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 125
Clothing................................ 25
Petrol/diesel........................... 200
Road tax................................ 12
Car Insurance........................... 30
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 932.5


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Halifax crecit ard.............2500......75........0
lloyds overdraft...............2500......40........20
santander overdraft............2500......20........20
Tesco Loan.....................15500.....296.......7
M and S Credit card............700.......25........17
Virgin Credit card.............2000......57........0
natwest overdraft..............2000......40........20
natwest overdraft..............3000......40........20
Total unsecured debts..........30700.....593.......-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 932.5
Available for debt repayments........... 317.5
Monthly UNsecured debt repayments....... 593
Amount short for making debt repayments. -275.5

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,700
Net Assets.............................. -30,200

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

UpToMyNeckInIt

Hi azulay111,

I really feel for you, as I was in a similar situation 18-Months ago.

I too have a tendancy to agree with what other posters have said: Based on the information presented, Bankruptcy is likely to be a better option than an IVA (unless you are in a profession where bankruptcy is a no-no).

I think actually, that you are bring somewhat 'tight' with the expenditure that you are allowing for (understandable - been there myself: trying to live on next to nothing to service your debts).

Those of us in IVA's generally have to live within the 'Stepchange budget Guidelines'. the latest version that I can get (2012) can be found here:

https://docs.google.com/file/d/0B7LabJy69BP1M0gxeHQ1SDFiN1E/edit?pli=1

Whilst I am no expert, I would assume that similar figures will be applied when considering other forms of insolvency as well.

I am led to believe that with bankruptcy specifically, sometimes the aparently more generous 'common financial statement' figures may apply if you have to enter an IPA. But since these are not available to the public, I cannot comment further.

Whilst I appreciate your SOA is only a rough guide, you clearly have more going out than coming in as it is. If you were to attempt living on 'reasonable' allowances as per the Stepchange Guidance, you would go into financial free-fall.

I suggest, sooner rather than later, going to your local CAB, who may be able to advise on the best course of action, including how to stump up the £750 fee for going bankrupt.

I sincerely hope you sort something out soon, and please let us know how you get on.

Best of luck with whatever you decide to do.

Depth_Charge

Hi

Azulay

Useful Citizens Advice info and calcuator below on IPAs & IPOs that includes a link to the I/S B/R bankruptcy expenditure allowances.

http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp

Best wishes

Drum_Master

Thank you for your advice

This is the honest opinions and aid I was looking for. Maybe I have been a little tight but I do not know what is and is not tight.

Any other advice anybody could offer on average would be appreciated.

For example petrol. I spend £10 a day on petrol for work, can I claim further that £200? and what is common for hobbies? presents? personal alowances?