SOA Help

[Deleted User]

I think the OP would still be skating on thin ice lilybankrupt.

A person applying for BR, is required to supply details of his/her income, expenditure and debts.

Variations of a few pounds, in the estimates or his/her living costs, is one thing, but the OP would be overestimating by almost 1/4 of his salary.

lilybankrupt

Yes it's a fair challenge.

I guess the question when submitting an SOA is whether these figures should be 'absolute minimum' or 'reasonable'. By reasonable I don't mean luxurious, just not absolute breadline figures.

If the OP then chooses to live 'on the breadline' in order to help his parents, wouldn't that be OK?

On benefits, excluding any child benefit or similar, a single person would be expected to live on £70 a week for absolutely everything - food, fuel, heating, water etc etc. That to me is breadline, and most SOA's seem to be higher than this.

I agree though that a quarter of salary is pushing it, I was more thinking maybe £50 a week/£200 a month so 10% of salary. That may not be enough of course in which case it's academic anyway.

[Deleted User]

lilybankrupt wrote: »

On benefits, excluding any child benefit or similar, a single person would be expected to live on £70 a week for absolutely everything - food, fuel, heating, water etc etc..

However, bear in mind that such a person wouldn't be paying nearly £500pm on rent and CT, nor £270pm on travel, nor £450 pm on child maintenance, nor £75pm on work dinners.

woodformoretrees

Really feel for the OP, but worried that his parents would be more horrified at the distress he's going through than from having to fend the creditors off for 12 months. Speaking as a parent it would break my heart, BUT, I know every family dynamic is different.
Just aware that sometimes the stress and depression and sheer desperation caused by debt can prevent entirely rational thoughts from taking first place.

longtermplanner

Let's return to the SoA posted at the start.

So I am not willing to budge on the paying of the £436 to my parents every month until the sum is paid

Are you saying that you had hidden £436 of extra payments in the SoA? It looks rather generous in places, but that is a LOT of fat to have added. The OR does get to see your bank statements, and if it is obvious that you haven't been paying expenses any where near the amount you put down, it may well be spotted.

I'm not making any judgements on whether you should have borrowed money from your parents or why they were foolish enough to lend it to you. What is done is done and it's normal to feel that you HAVE to see your parents don't suffer in any way.

So you can't go bankrupt now, because you won't be able to carry on repaying their loan and the OR is also likely to want to look back at why you have been preferring them over your other creditors.

Neither can you go for an IVA.

Your most sensible option given you feel you have to repay your parents is a DMP, paying little or nothing to your creditors whilst you repay your loan to your parents. At the end of that period (how long until that loan is cleared?) you can then start making large DMP payments to your other creditors. A couple of years later, you can review whether you want to carry on with the DMP or opt for bankruptcy, safe in the knowledge that your preference to your parents is well in the past.

It's going to be tough for many years for you, but there aren't any other options that will keep your parents safely out of this.

[Deleted User]

longtermplanner wrote: »

(how long until that loan is cleared?)

23 months.

lilybankrupt

Bedsit_Bob wrote: »

However, bear in mind that such a person wouldn't be paying nearly £500pm on rent and CT, nor £270pm on travel, nor £450 pm on child maintenance, nor £75pm on work dinners.

True, but £70 a week is about £300 per month, and from what I can see from previous posts most people are allowed more than this for housekeeping plus gas/electric/water plus clothes/haircuts plus phone/internet.

I think Long Term Planner is right though, if the OP is saying he needs to keep paying over £400 a month to his parents I don't think my idea is a good one, that's a lot of SOA padding :eek:

There doesn't seem to be any way other than to struggle on until the parental loan is paid off. Even then a formal DMP is going to be hard, as StepChange and the like are going to expect any surplus income to be fairly shared between all creditors.

longtermplanner

Bedsit_Bob wrote: »

23 months.

phew, i was worried it was going to be a lot longer.

OK, settle down and pay it off , paying little or nothing to your other debts in the meanwhile. Then 2 years later revisit bankruptcy / IVA.

[Deleted User]

That 23 months is, of course, only for the loan taken out by the OP's parents.

Based on my calculations, of what the OP could reasonably pinch from his current SOA (around £300pm), the remainder would take about 15 years, assuming his loan figures are correct, and all interest frozen.

longtermplanner

Bedsit_Bob wrote: »

That 23 months is, of course, only for the loan taken out by the OP's parents.

sure, that's what I thought you said.

Based on my calculations, of what the OP could reasonably pinch from his current SOA (around £300pm), the remainder would take about 15 years, assuming his loan figures are correct, and all interest frozen.

But after 4 years (2 years to clear parents loan then 2 years to let it fade away so the OR won't look into it) he can go bankrupt or for an IVA.

Total time till debt free 4 years plus 3 years IPA or 9 years including an IVA.

Not pretty, but that's the price of repaying his parents in full and keeping them out of it.