SOA Help

michael1983l

I posted this in the DFW board but got a different reception from that of what I was expecting and was advised to post here instead.

Please bear in mind that I am looking to maximise my budget, to go towards a Bankrupcy or IVA, going to take advice again from CAB and decide later. Please see copy and pasted text below and pass comment on wether you think a judge will allow the figures I have put down.

Ok it might be worth noting that I have 2 kids which I have 2 days a week. So I have included a little bit extra in the household budget for them

Income

Salary......... £2000 (I have no other benefits or income)

Total...........£2000


Outgoings


Rent............£442
Buildings/Contents Insurance ....£15
Council Tax......£52.50
Gas.........£50
Electricity.....£20
Water.....£45
TV License....£13
Child Maintenance.....£450


Total Essential Outgoing..... £1087.50

Phone

Home Phone (Includes Broadband) .... £25
Mobile Phone..... £30

Total Phone ........ £55


Travel

(I have company Car but I have to pay fuel)

Fuel.......... £120
Parking......... £150 (I work 15 shifts a month and parking is £15 a day, around 5 days I manage to get free parking on road but there is little and it depends what time my shift starts)


Total Travel ..... £270


Housekeeping

Food and Milk....... £280
Cleaning and Toiletries.... £10
Sweets (for kids)......£10
Laundry.......£10
Clothing.........£22
Nappies and Baby Items......£20


Total Housekeeping......... £352


Other Spending

Prescriptions... £7.50
House Maintenance.... £30
Meals at work ...... £75 (£5 a day, I work 12 hour shifts and need a hot meal once during the day)
Pocket Money and School Trips.... £20
Hobbies, Leisure or Sport...... £44
Gifts (Birthdays, Xmas)......£25


Total Other Spending ..... 201.50


Total Outgoing...... £1966


Money left for creditors..... £34


I'm not going to list my creditors because there is lots. My question is, is the above budget going to likely be accepted by a judge if presented to him and if not where might it have to be adjusted?

Thanks

[Deleted User]

Personally, I think you will struggle in some areas, in particular food.

£355 for about 1.5 people is pushing it.

My mate was allowed £325pm, for 3 people.

ORs aren't daft, and I expect he'll take one look at £34 left out of £2000, and smell a rat.

Given how much you earn, is bankruptcy really the last option?

How much are you committed to paying, to your debts, each month?

michael1983l

Bedsit_Bob wrote: »

Personally, I think you will struggle in some areas, in particular food.

£355 for about 1.5 people is pushing it.

My mate was allowed £325pm, for 3 people.

ORs aren't daft, and I expect he'll take one look at £34 left out of £2000, and smell a rat.

Given how much you earn, is bankruptcy really the last option?

How much are you committed to paying, to your debts, each month?

Ok yes so I will look at that again. Given your advice on another post, BR is probably not available to me at this time so it is more likely an IVA.

The trouble is I need a way of finding £436 to service a loan in my parents name that I took. Unfortunately they could not afford to take on this debt or indeed should be forced to, so any sollution I find will depend on me being able to service this debt, be that legitimately or if I have to do it by breaking the odd rule. As this part is non negotiable to me and I'd rather risk doing time than letting my parents get into financial difficulties off my bad money management.

If there really is no way of getting this money to them, I will just have to continue hiding and ignoreing the problem until such a time my parents are in the clear.

[Deleted User]

michael1983l wrote: »

The trouble is I need a way of finding £436 to service a loan in my parents name that I took.

I suggest going back to the other thread, and redoing your SOA, including the debts, so we can see if there is a way you can meet your commitments.

Unfortunately they could not afford to take on this debt or indeed should be forced to

I'm afraid, legally, they took on the debt, the moment they signed the paperwork.

so any solution I find will depend on me being able to service this debt, be that legitimately or if I have to do it by breaking the odd rule.

Fraud and perjury is not "breaking the odd rule".

It is a very serious criminal act, which could put you in prison for a considerable period of time.

If you don't believe me, Google "lord archer perjury".

I'd rather risk doing time than letting my parents get into financial difficulties off my bad money management.

You serving a few years in jail, will leave them in the same (and probably even greater) financial difficulties.

Trinitrotoluene

Michael, are you living at home at the moment?

I've read your posts in the other forums too. If you're not back at home, move back and use that time to get the debt to your parents paid off rapidly. At that point you can look at the situation again.

michael1983l

Trinitrotoluene wrote: »

Michael, are you living at home at the moment?

I've read your posts in the other forums too. If you're not back at home, move back and use that time to get the debt to your parents paid off rapidly. At that point you can look at the situation again.

They live in a 1 bed bungalow, so that is not really an option. I also need somewhere to have my kids overnight for 2 days a week.

debt_doctor

michael1983l wrote: »

I posted this in the DFW board but got a different reception from that of what I was expecting and was advised to post here instead.

Please bear in mind that I am looking to maximise my budget, to go towards a Bankrupcy or IVA, going to take advice again from CAB and decide later. Please see copy and pasted text below and pass comment on wether you think a judge will allow the figures I have put down.

Ok it might be worth noting that I have 2 kids which I have 2 days a week. So I have included a little bit extra in the household budget for them

Income

Salary......... £2000 (I have no other benefits or income)

Total...........£2000


Outgoings


Rent............£442
Buildings/Contents Insurance ....£15
Council Tax......£52.50
Gas.........£50
Electricity.....£20
Water.....£45
TV License....£13
Child Maintenance.....£450


Total Essential Outgoing..... £1087.50

Phone

Home Phone (Includes Broadband) .... £25
Mobile Phone..... £30

Total Phone ........ £55


Travel

(I have company Car but I have to pay fuel)

Fuel.......... £120
Parking......... £150 (I work 15 shifts a month and parking is £15 a day, around 5 days I manage to get free parking on road but there is little and it depends what time my shift starts)


Total Travel ..... £270


Housekeeping

Food and Milk....... £280
Cleaning and Toiletries.... £10
Sweets (for kids)......£10
Laundry.......£10
Clothing.........£22
Nappies and Baby Items......£20


Total Housekeeping......... £352


Other Spending

Prescriptions... £7.50
House Maintenance.... £30
Meals at work ...... £75 (£5 a day, I work 12 hour shifts and need a hot meal once during the day)
Pocket Money and School Trips.... £20
Hobbies, Leisure or Sport...... £44
Gifts (Birthdays, Xmas)......£25


Total Other Spending ..... 201.50


Total Outgoing...... £1966


Money left for creditors..... £34


I'm not going to list my creditors because there is lots. My question is, is the above budget going to likely be accepted by a judge if presented to him and if not where might it have to be adjusted?

Thanks

Hi, generally I find that all fine. Your fuels seem rather low. I would remove the last 3 items and instead have a £50 pm holiday fund and £20 pm haircuts. - and the spare wants to remain in your pocket.


I suggest, on your figures you say "no thanks" to any IPA that may be suggested. - but first of course - you need to know if BR is right for you.


DD

michael1983l

Excuse my ignorance but what is an IPA?

debt_doctor

Have a look at the stickies on this board about all the main points of bankruptcy.
An IPA is an AGREEMENT to pay the Insolvency Service some money towards their fees, government fees and if more than around £5k becomes available, some return to the creditors. It is up to you if you agree, if you don't they have an option to apply to court to make you pay something - highly unlikely though (although they will threaten it all day long) as you don't have any spare cash.
The Insolvency Act 1986 is not designed to keep poor people poor - it is to give a chance for a fresh start, and for that you need at least a little spare cash.


DD

michael1983l

May I ask you a question. If I have been making a regular payment to a parent for a loan recently and applied for BR. I know the courts could try and retrospectively take money back from my parents but in reality how likely is that to happen and can they force them to pay back what I have paid them in the past or just ask nicely?

[Deleted User]

Not sure how likely it is, that the OR would demand the return of money already paid prior to bankruptcy, but any money paid, without authorisation, after bankruptcy, would be liable to recovery.

I think you might find the following excerpts, taken from the Enterprise, Trade and Investment guide to bankruptcy, useful.

6. What are your duties as a bankrupt?

When a bankruptcy order has been made, you must:

give the Official Receiver a full list of your assets and details of what
you owe and to whom (your creditors);

not make payments direct to your creditors.

You may also have to go to Court and explain why you are in debt. If you
do not co-operate, you could be arrested.

(emphasis is mine)