Bankruptcy advice needed for young family.

thewayitis_2

The OP can draw up a SOA with a copy of bank statements and a spare evening. He doesnt have to post to DFW, but all the techniques he'll need are demonstrated there.

Worst case it will allow him to enter into the BR process better prepared, with a good SOA ready to present to the professional help. But who knows - maybe his situation isnt as dire as he thinks.

The OP is clearly at his wits end with the debt, but this one small step back may save him a few going forward.

dappanumber1

hi, i forgot

£15 contact lenses a month to add.


theres probably more and i will work out full income and exp when i get chance!

theres a few questions with regard to the payments i may have to pay back, forgot what they're called now but the OR decides them i believe. do you think this is likely to happen? or is it down to income expenditure etc?

shall i transfer bt, sky, household bills etc into my wifes name? i say this incase all my accounts get closed down, obviously it will still be me paying, but i dont really want home phone and internet taken off me. mobile phone i aint really bothered about as i can go payg.
is it possible for my wages to be payed into wifes account and dd's taken from there? or just get a basic account for myself?

also is it worth having gas and leccy meters put in? i've heard its dearer but it might be easier to manage. i already have a water meter.

also another thing i rent tv at £22 month is it worth putting a cheap one on c/c and sending the rented one back, or would i be able to keep it in my name to build up my credit rating after a while? or will it just get shut down anyway?

thanks for all your help only get chance to check this early before i go work or late at night when kids are in bed when i get some time to myself!

cheers, adam.

PixiePie

dappanumber1 wrote: »

hi, i forgot

£15 contact lenses a month to add.
If that's how much it costs, that's how much it costs. It costs us more for eyes as both of us are glasses wearers, he's got a funny presrip and I have to wear contacts as my glasses always fall off (funny shaped head :P) plus the basic glasses incase my eyes fall out or something.

theres probably more and i will work out full income and exp when i get chance!

theres a few questions with regard to the payments i may have to pay back, forgot what they're called now but the OR decides them i believe. do you think this is likely to happen? or is it down to income expenditure etc?
The IPA/IPOs? Yes, this is worked out on your I&E form (Income and expenditure). There is a sliding scale of how much you will get ordered to pay depending on your surplus (amount left of your income after all your allowed outgoings (as in your SOA) have been taken off). If it's under £100 you shouldn't get one at all. If it's more than £100 it's a percentage from 50% up to 75% when you start getting about £400+ surplus. You can see a list here : http://forums.moneysavingexpert.com/showpost.html?p=3319178&postcount=135
and more info on what an IPA is generally here (coz I'm not good with big words :P) http://www.insolvency.gov.uk/guidanceleaflets/ipoipa/ipoipa.htm

shall i transfer bt, sky, household bills etc into my wifes name? i say this incase all my accounts get closed down, obviously it will still be me paying, but i dont really want home phone and internet taken off me. mobile phone i aint really bothered about as i can go payg.

If you want to - BT (I have heard) sometimes close BR's accounts, but again don't always. To be honest, best for someone else with actual experience of this to answer methinks....

is it possible for my wages to be payed into wifes account and dd's taken from there? or just get a basic account for myself?
I will get my wages paid into my OH's account from Sept when I start my new job, purely as my Bank account will be frozen then shut down (I owe a little on the acount via OD and with the bank via a loan), so to stop any problems with pay rroll, given them his details. Will have to see what OR says about it all. Will try and get it transfered back to my account if OR wants after BR and opened a basic account. Would prefer to keep it in OH's account though for ever more as I don't trust myself with any money again at the moment

also is it worth having gas and leccy meters put in? i've heard its dearer but it might be easier to manage. i already have a water meter.
It is dearer, so it's up to you - pay more, or keep an eye on the meters? If you write a crib sheet of costs on the meters, would you stick to it do you think?

also another thing i rent tv at £22 month is it worth putting a cheap one on c/c and sending the rented one back, or would i be able to keep it in my name to build up my credit rating after a while? or will it just get shut down anyway?
Sorry I don't know about this one (although I do know you are allowed to rent a tv on your I&E form for the OR according to the bumpf on the insolvency pages)

thanks for all your help only get chance to check this early before i go work or late at night when kids are in bed when i get some time to myself!

cheers, adam.

Hope that helps a bit

thewayitis_2

22 quid TV rental? People still rent TVs?!

Get yourself a used CRT TV from ebay - they are dirt cheap because its all gone to TFT flat panels now. You'll probably need to go to the sellers location to collect it in person due to the size. I sold a 3 year old 32inch Phillips flat screen for 40 quid a couple of months back. It cost me about 300 when I bought it new. It was in cracking condition when I sold it; I was pretty gutted.

Luxuries will have to be funded out of the small %age of disposable income you are left with if you BR. You may find £30 a month for broadband a bit expensive. Are Carphone Warehouse still doing their free broadband thing?

FYI - I think that any contracts you may be tied into (e.g. sky, BT) can be ended early by closing them well BEFORE you go BR. They will stick hefty termination charges etc on to your bill but dont worry because BR wipes the debt out. Bin those Sky robdogs at the first opportunity and get yourself a cheapo freeview box. 20 quid or so. You can watch the footy down at the pub with a pint in your hand for a fraction of the money you'll save...

meme_3

blind-as-a-bat wrote: »

Thats a bit of a bold statmant meme without knowing the OP,s age no claims status area etc

my wife cant get hers below £43 (with breakdown) and she has 5 yrs+

OOPS! Sorry didn't mean to offend anyone.:o

My point is - if the car is only worth £800, the insurance is a bit excessive at £396 per year!

I didn't realise that the insurance companies were ripping people off so much, that's all....

joebig

Hi Adam,
You have obviously been stressing over this for a while now. I know how you feel. I was in a similar situation a few years ago. I had about 60k worth of debt. Not counting mortgage and i was 24. I tried everything to get out of debt. Pleaded with the BOS for help for over a year. Was constantly lied to.:mad: (Which i have evidence of). Hoping the FOS make them pay for their lies.

Anyway, bankruptcy is an option for you, and believe me the feeling that comes with knowing that you cannot be chased for money anymore is tremendous.:D . However, it can have serious pitfalls. The aftermath of bankruptcy can follow you about like a bad smell for years. Even stupid things can annoy you. Like if you have to go pay as you go with your landline you may not be able to get broadband. We had difficulties with this. Also your tenancy may prove a stumbling block with bankruptcy attached. Check this first.

I personally would not recommend bankruptcy or any form of bankruptcy procedure if you have the drive or ambition to get out of this. Speak to the missus and make sure you are both agreed on the best thing to do. The most important thing is make sure you are there to fully support one another. Think of alternative ways to make a bit extra. Even a few extra hours cash in hand for you or the missus can make a massive difference. If you decide to try and avoid it, write to your creditors and ask to change your payments to something more affordable. They may be more willing to do this than for you to go bankrupt. But be advised that they may not want to listen .

I am not trying to put you off BR as it always does sound better and in a lot of cases it is, but you come across as the kind of guy that has the determination to do well in life. BR may prove costly at a later date. Getting a mortgage and such things.

P.S. I know having a good sky package makes things easier aswell. Especially if you are a football man.:T

Good luck mate. No matter what you do.

seven-day-weekend

savagevixen wrote: »

The limited SOA shows a few areas, where small cutbacks can be made, areas where he clearly does not have enough funds to support (groceries) and areas that he has completely forgotten to include.(Car costs, dog etc)

Why is everyone so determined to have an SOA of his to tear apart. The chap sounds like he is being responsible and trying to deal with it as well as work and look after 2 small kids!

It is evident that when he includes the things he has omitted, his SOA is not going to be that great.

DFW is a terrifying place. I find it very intimidating and hated posting there. He does not have to do that at all. It is up to him, and posts people have put here, will, I am sure put him off.

It is like inviting him to be torn apart and shot down.

The CAB and CCCS will be just as able at helping with his SOA.



P.S. I am not saying that DFW is a bad place at all, but he posted asking for bankruptcy advice and was not expecting people to tell him to cut his car insurance down!!! DFW is great for people who require that support.

Don't normally post on this board. Just to say, seeing if there is a way you can cut back and start making inroads into your debt is the first step though? Things like cutting the car insurance down and ditching Sky is good advice! Surely Bankruptcy is a last resort once you have explored other options?

This is a genuine suggestion, I am not 'getting at' anyone.

Keeping_Positive

Sorry if I missed this whilst reading the previous posts but you said with tax credits if you earn more they pay less. This is true but they will not take nearly as much as you think. Each year I have been lucky to have a pay increase (still in a similar situation to you though but couldnt go bankrupt as I work in finance . This year my tax credits went down by less than 50% of what what I earned extra from last year and I did well in 06/07. I expected alot worse.

Basically dont feel put off by working a bit extra if you can. You wont be working for nothing.

seven-day-weekend

blind-as-a-bat wrote: »

The OP hasnt been back to the board since the third of this month because of the way he was critiscised for his budjet. Thats not what he saught when he posted here he was asking for advice on bankruptcy.

Try reading the OP again and you will see he knew sky would have to go and further on he explains his car insurance.

By the tone of my last PM with him i dont think he will be back after the arguments in this thread over petty little things that wouldnt help his situation enough and he will not now get the help he asked for in the first place.

All this has achieved is the OP being left to deal with it on his own so lets not start it up again and do the same to someone else

Right, I'll read the thread properly next time. I'm sorry he hasn't been back - that is a great shame and I'm sorry he was put off.

However, surely it IS good advice to try to free up some cash for him? IIRC he was over budget for his income? It's not wrong to try to suggest savings, is it?

If my son came to me asking exactly the same questions I'd want to give him some suggestions that meant he might not have to go bankrupt. Obviously it would be his choice in the end, but at least he would be able to see if there was an alternative.

seven-day-weekend

Right, bilnd-as -a bat, I understand now. It's to do with not being able to see the wood for the trees.

Thanks