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.

Moneysaverchris

How did you get some much credit with that income!!! Wow.

mattannar

Perhaps the OP has had to change jobs for some reason. The OP may have had the income to get that credit and also to service it, I haven't the back story but you cannot judge.

Drum_Master

I have never missed payments and have always shifted debt around with 0% offers. I now cannot control this Any further and in hind sight wish I had not done it but now I need to deal with what I have done and any advice would be appreciated.

Moneysaverchris

azulay111 wrote: »

I have never missed payments and have always shifted debt around with 0% offers. I now cannot control this Any further and in hind sight wish I had not done it but now I need to deal with what I have done and any advice would be appreciated.

My apologies i know your only after some help,
what did youspend the money on can you sell any items?
If not can you increase income?
Failing them i think you should file bankruptcy

chris

Drum_Master

Hi Chris,

Thank you for your advice,
It has been built up over about 8 years starting from student debt.

Unfortunatly it has not given me any options to sell in order to recoup any of the debt back. I am seriously considering bankruptcy but using the SAO I have put together would like some advice regarding how I have included things. Is my petrol allowance wrong? can I claim for other things I may need? I just want to find out all the info I can before taking a plunge so huge.

Thank you

thriftylass

Could you ask for the interests to be frozen? I thought I heard someone do this. It took you 8 years to build this debt up but in 8 years you could be debt free again. I take it you spoken to a free debt advice agency like stepchange?

Sorry just started reading the back ground thread. You said there in the first post: This being said if I choose 'A fresh start' (Bankruptcy)which is possible, I would be required to pay my entire excess for the next 3 years in an IPA. I do not understand how this is a fresh start? Well, sorry but there is no quick fix, did you expect the debt just to vanish and be written off? Look at the bright side, you said you might work your way up the pay scale hopefully and might get out of this under your own steam in less than 8 years.


Anyway, hope you find the right solution for you, the most important step is taken, asking for help. Keep going

Drum_Master

Hi Thrifty,

Thank you for your input,

I understand your that there is no quick fix but the ramplications of bankruptcy and putting you into a state of affairs where you are left with nothing as well as being on your report for up to 10 years can be more than enough damage.

The idea of bankruptcy is to offer that fresh start, this has also been appealed by many top mentors and agencies. If you have to pay back your entire excess of money for 3 years, this is not offering that fresh start because you are technically still paying all this debt. This can create a chain reaction and say if in 3 years you cannot even afford to buy a chocolate bar or celebrate with your friends that your life is on track and you are bettering it with working hard with say a promotion etc (also you would not benefit from financially) where would any motivation to succeed come from? This could just wind you back into another pit of depression and debt.

Please do not get me wrong, I understand that you should be required to cover these losses but everybody deserves that second chance. companies that lend understand the risk when lending and more often than not they get all the money back.

This is why I want to know all the implications and options avialable. If I am to look for these promotions and life bettering, is paying this over 8-7-6 years a better option? or do I struggle through 3 years in a more difficult state but will be effected for much longer.

Yes interest can be frozen, but for how long? how do I go about this route at the same time being fair to all creditors?

As writtin in law, bankruptcy is to provide a fresh start but 3 years of struggle (even though have been strugglign for years to cope with debt) followed by further years where credit, mortgage would be unatainable is surely not the provisions of 'A fresh start.'

Maybe there should be law for repeat offences? I am unsure but what I am sure of is my integrity to offer my maximum but with retaining a little dignity, encouragment and enjoyment along the way to fixing this mess would certainly go alot further to offering a chance of a better life.

any further advice would be appreciated. especially regarding my SAO. Am I claiming right?wrong? If I entered this into the bankruptcy agreement what should I change?

Thank you all

macbabypam

Yes it is difficult living with an IPA for 3 years after bankruptcy. However most people who have reached the decision to go BR feel this is the only way to escape debts that they know they will never pay back. If you chose the BR option you have to reconcile with yourself that any extra money you earn will go to the OR to pay off some of what you owe.

It's tough but thats it.

BR isn't easy, it has caused massive anxiety and stress even after i went BR , I am yet to find the peace from knowing I am debt free.

Drum_Master

Hi Macbaby,

Thank you for your honesty. I understand that this is the way it is but does not mean I agree with it and as I am sure you are aware I want to know all possibilities before going ahead with this approach.

If possible would you please send me a break down of you SAO? I understand the consequences and am struggling with the prospect of entering that decision but all information into understanding the situation I will be in once in BR would help me greatly.

Thank you

arcon5

Bankruptcy isn't about giving you a fresh start!

Bankruptcy is the act of formally declaring yourself insolvent and having a qualified person take control of your estate for the benefit of the creditors. If your estate doesn't cover the debts then they are written off. But in realising your estate they may seek to take possession of any equity in your home (or sell it and realise it that way), confiscate any savings you have above and beyond what is reasonable living costs, realise any value in worthwhile assets (such as your car - if you say have a £10k car then expect to loose this in place of a car of about £1k if you can demonstrate a need for one), and amongst many other things confiscate any surplus income you may have over and above all reasonable living costs.

BR isn't a picnic and shouldn't be taken lightly - so certainly don't see it as your get out of jail free card!
An IPO/IPA for 3 years is much cheaper than repaying your creditors so you're still getting a pretty sweet deal if you ask me!


The fact BR can give you a fresh start is simply the light at the end of the tunnel.