Help with SOA please?

Ben1984

Hi Guys,

Im in a position where I'm in £60,000 of debt, the majority from a bar I opened that all went wrong and some from personal loans and credit cards. All of my debt is now defaulted and £14,000 rent arrears is a CCJ. I am currently not making any payments towards my debt.

I have no property, vehicles (that i own) or any non essential items for living and as you can see from my SOA I'm not in a fantastic place right now.

My Partner works 8hours a week at minimum wage and I receive a fixed salary.

I have a daughter to a previous relationship and pay maintenance to her Mother.

If I were to bankrupt, would the statement of affairs bellow be accepted? If not - can you advise me where I need to cut back or may be leaving myself short? I have commented anywhere I think may need justification...

Thanks in advance for you help!


Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 2,598
Monthly expenses 2,582
Available for debt repayments 16
UNsecured debt repayments 0
Amount left after debt repayments 16
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -0
Net Assets 0
Household Information

Number of adults in household 2
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 2418
Partners monthly income 180
Total monthly income 2598

Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 550
Management charge (leasehold property) 0
Council tax 110
Electricity 90
Gas 40
Oil 0
Water Rates 42
Telephone (land line) 40
Mobile phone 20
TV Licence 13
Satellite/Cable TV 0
Internet services 10
Groceries etc. 380
Clothing 100
Petrol/diesel 350
(I work 40 miles away from home and public transport cannot get me there in time to start. My daughter lives 10 miles away and I pick her up and drop her off twice a week
Road tax 20
Car Insurance 72
Car maintenance (including MOT) 20
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 400
(I Pay £385 maintenance to my ex and spend £7.50 taking my daughter to soft play when I pick her up
Medical (prescriptions, dentists, opticians etc.) 35
I pay £9 a month for prescriptions, spend £60 every 6 months at the dentist and £16 a month on contact lenses and vision test
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 0
Haircuts 30
Entertainment 20
Holiday 20
Emergency Fund 20
Car Lease 200
I can't get credit to buy a car and have no savings or disposable income to spend on a car so I currently lease a car for £200 a month
Total monthly expenses 2582


Id appreciate any feedback or advice! Thanks again.

adpod

Ben1984 wrote: »

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 2,598
Monthly expenses 2,582
Available for debt repayments 16
UNsecured debt repayments 0
Amount left after debt repayments 16
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -0
Net Assets 0
Household Information

Number of adults in household 2
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 2418
Partners monthly income 180
Total monthly income 2598

Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 550
Management charge (leasehold property) 0
Council tax 110
Electricity 90
Gas 40
Oil 0
Water Rates 42
Telephone (land line) 40
Mobile phone 20
TV Licence 13
Satellite/Cable TV 0
Internet services 10
Groceries etc. 380 (this is a little high for 2 people, I managed to get mine to £350 but included money to feed our large dogs)
Clothing 100 (The max I could get was £50)
Petrol/diesel 350
(I work 40 miles away from home and public transport cannot get me there in time to start. My daughter lives 10 miles away and I pick her up and drop her off twice a week
Road tax 20
Car Insurance 72
Car maintenance (including MOT) 20
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 400
(I Pay £385 maintenance to my ex and spend £7.50 taking my daughter to soft play when I pick her up
Medical (prescriptions, dentists, opticians etc.) 35
I pay £9 a month for prescriptions, spend £60 every 6 months at the dentist and £16 a month on contact lenses and vision test
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 0
Haircuts 30
Entertainment 20 (not sure you are allowed to put anything down for entertainment)
Holiday 20 You could put this up to about £40
Emergency Fund 20
Car Lease 200 If you lease a car it will probably be returned as it is an assest in the BR
I can't get credit to buy a car and have no savings or disposable income to spend on a car so I currently lease a car for £200 a month
Total monthly expenses 2582


Id appreciate any feedback or advice! Thanks again.

The SOA that the OR provide is far less detailed only about 6-7 sections with a bit at the bottom to explain your costings.

Ben1984

adpod wrote: »

The SOA that the OR provide is far less details only about 6-7 sections with a bit at the bottom to expelling your costings.

Thanks for the response, can I ask what you mean about the car being returned? I will no longer be allowed to lease? Without a car I would not be able to get to work?

Thanks again

adpod

Ben1984 wrote: »

Thanks for the response, can I ask what you mean about the car being returned? I will no longer be allowed to lease? Without a car I would not be able to get to work?

Thanks again

Im not 100% sure but I would imagine your car lease will be classed as a debt, the car returned and any outstanding money owed included in your BR.

You are allowed to own a car for work etc but it must only be worth £1000 or less - how much is your car worth and how long is left on the lease?

Im sure someone on here can give you a more accurate response.

National_Debtline

Hi Ben

Welcome to the forum. The first thing I would say is that discretion and judgment can play a large role in the decisions made by the OR - it isn't just a case of them measuring your expenditure against a one-size-fits-all list of acceptable figures. Take the car expenses, for example: high compared to the average household, perhaps, but if that expense means you can earn >£30K per annum as opposed to, say, working 2 minutes' walk away on the minimum wage, the OR can decide that the benefits outweigh the cost and allow your lease payments to continue.

Clothing @£100 is one figure that does stick out a little - how did you come to this number, guesswork or calculation? The OR may query it, but again if the job requires you to rotate suits, for example, OR may cut you a little more slack than normal.

It sounds as if you are quite focused on pursuing bankruptcy. Have you sought advice on the process and how it stacks up against the alternatives? The reason I ask is that the court will normally expect you to confirm that you have sought advice before they will accept your petition.

Kind regards

Dennis @NDL

adpod

National_Debtline_representative wrote: »

Hi Ben

Welcome to the forum. The first thing I would say is that discretion and judgment can play a large role in the decisions made by the OR - it isn't just a case of them measuring your expenditure against a one-size-fits-all list of acceptable figures. Take the car expenses, for example: high compared to the average household, perhaps, but if that expense means you can earn >£30K per annum as opposed to, say, working 2 minutes' walk away on the minimum wage, the OR can decide that the benefits outweigh the cost and allow your lease payments to continue.

Clothing @£100 is one figure that does stick out a little - how did you come to this number, guesswork or calculation? The OR may query it, but again if the job requires you to rotate suits, for example, OR may cut you a little more slack than normal.

It sounds as if you are quite focused on pursuing bankruptcy. Have you sought advice on the process and how it stacks up against the alternatives? The reason I ask is that the court will normally expect you to confirm that you have sought advice before they will accept your petition.

Kind regards

Dennis @NDL

This was a question I wasn't expecting in court and my response was "ummm I went to money saving expert for advice" the judge had a wee smile at that one.

National_Debtline

adpod wrote: »

Im not 100% sure but I would imagine your car lease will be classed as a debt, the car returned and any outstanding money owed included in your BR.

You are allowed to own a car for work etc but it must only be worth £1000 or less - how much is your car worth and how long is left on the lease?

Im sure someone on here can give you a more accurate response.

The rule on car value is not necessarily as hard and fast as this, adpod. £1K is often used as a guideline but we come across a number of cases where vehicles worth in excess of this figure are left alone by the OR. It can depend on what the car is needed for; longer commutes are more demanding on a vehicle, so the OR may decide that making the debtor downsize is a false economy.

Regards

Dennis @NDL

National_Debtline

adpod wrote: »

This was a question I wasn't expecting in court and my response was "ummm I went to money saving expert for advice" the judge had a wee smile at that one.

Brilliant. I don't normally do smileys but that merits one!



Dennis @NDL

Ben1984

National_Debtline_representative wrote: »

Hi Ben

Welcome to the forum. The first thing I would say is that discretion and judgment can play a large role in the decisions made by the OR - it isn't just a case of them measuring your expenditure against a one-size-fits-all list of acceptable figures. Take the car expenses, for example: high compared to the average household, perhaps, but if that expense means you can earn >£30K per annum as opposed to, say, working 2 minutes' walk away on the minimum wage, the OR can decide that the benefits outweigh the cost and allow your lease payments to continue.

Clothing @£100 is one figure that does stick out a little - how did you come to this number, guesswork or calculation? The OR may query it, but again if the job requires you to rotate suits, for example, OR may cut you a little more slack than normal.

It sounds as if you are quite focused on pursuing bankruptcy. Have you sought advice on the process and how it stacks up against the alternatives? The reason I ask is that the court will normally expect you to confirm that you have sought advice before they will accept your petition.

Kind regards

Dennis @NDL

Thanks Dennis - Yes £100 is just an estimate of what I would probably spend on our clothes over an average of 12 months. Perhaps £50 is a more realistic number? I have defaulted on an IVA recently and prior to that I had an unsuccessful Debt Management plan. I'm at a stage now where I its time to draw a line under it all?

My concern was that very few examples of SOA were as high as mine and that I could end up with £500-£1000 IPA!?

Ben1984

On the car lease, its on a month to month basis. I could hand the car back any time now but I would have nothing to purchase a new one :-/

Anondebtadvisor

You also check your lease agreement as you may find bankruptcy can result in the lease being terminated