Advice on SOA please..

seward815

This is my story;
I bought an apartment in the UK at the peak of housing boom in 2005. Since then I moved to US, but I had regular tenants and the repayments were up to date. Unfortunately for over a year, I wasn't able to find any tenants and couldn't make any payments. The bank has now repossessed the property and is going to sell it. Due to the housing market crash and the fall in prices, there is going to be a considerable amount of shortfall (Around 30-40K). There is no way that I can pay off this amount based on my current income. After talking to my bank for a possible settlement and consulting various agencies including Stepchange, I have decided to file for bankruptcy in UK.
I live in one of the most expensive cities in the US and am the only provider for a family of 3. I do have a car which would probably be valued at around $2000 (GBP 1200), which is essential for my work. I also have medical insurance from my job, but there is considerable co-pay with every service.
Please see my SOA below and advice if the allowances seem reasonable. Any advice from experts is appreciated.
Also would like to know what kind of proof of expenses I need to show to the OR please?

SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2160
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2160

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 736
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 150
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 90
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 30
Groceries etc. ......................... 500
Clothing................................ 120
Petrol/diesel........................... 200
Road tax................................ 5
Car Insurance........................... 15
Car maintenance (including MOT)......... 7
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 30
Other child related expenses............ 65
Medical (prescriptions, dentist etc).... 170
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........................... 10
Holiday................................. 10
Emergency fund.......................... 0
Total monthly expenses.................. 2168


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,160
Expenses (including HP & secured debts). 2,168
Available for debt repayments........... -8
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -8

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 1,200

seward815

Patiently waiting for any piece of advice!

TheGardener

Hi - the OR will want to see your budget balance - the fact you are in deficit even after BR will not be a step forward and will need addressing first. If you were in the UK you would probably have an NT tax code but I'm not sure how that would work in the USA.
Most proof of expenses like your rent, utilities etc would probably evident from your bank statements? Clothing seems high as does groceries for a family of 3 maybe as does petrol etc but its about what mileage you do and can evidence to the OR (I understood it was much cheaper in the US?)

egrescrimp

We are a family of 6, we have a food budget of £800 p/m but ours is because 2 of our kids have dietary needs without those Step Change said we'd be allowed around £700 so I think you maybe asked to reduce your food bill a bit (this is personal opinion based on figures I was quoted).

seward815

TheGardener wrote: »

Hi - the OR will want to see your budget balance - the fact you are in deficit even after BR will not be a step forward and will need addressing first. If you were in the UK you would probably have an NT tax code but I'm not sure how that would work in the USA.
Most proof of expenses like your rent, utilities etc would probably evident from your bank statements? Clothing seems high as does groceries for a family of 3 maybe as does petrol etc but its about what mileage you do and can evidence to the OR (I understood it was much cheaper in the US?)

Thank you all for the replies. What does an NT tax code mean? Do you think the OR will ask for my US tax return? Also normally how many months' bank statements are requested by the OR?
I guess I need to redo my SOA. Gas is definitely cheaper in the US, but I do drive a lot of miles. One area I need to figure out is the medical bills. If you have to go to the hospital here, the bills are huge, but I am not quiet sure how to convert this into monthly expense.

luvchocolate

nil tax code means tax is not taken from you but you pay it to the or/trustee.
I had to show 2 yrs bank statements its depends on your or and your banking activity they can go back as far as they need to.

TheGardener

In BR , HMRC (Tax man) becomes a creditor for the financial year that you go BR. In the UK, this means tax is not deducted at source -you get it in your pay packet but then have to hand it over to the OR. However, you are going to need specialist advice as I don't know that the IRS would be the same. If you were in the UK, based on your income and expenditure, you may not have a 3 year income payment agreement (IPA) as there would not be enough 'surplus' income for the OR to have.
I would try and contact the Insolvency service in the UK to ask (if StepChange were not able to help with US element of your enquiry?)

Jenny1983

Can I buy your apartment?

longtermplanner

seward815 wrote: »

What does an NT tax code mean? Do you think the OR will ask for my US tax return?

The NT tax code is irrelevant if you live outside the UK - it is means of funding the Insolvency Service from UK tax receipts and not relevant unless you pay UK tax.

I can't think why the OR would want to see your tax return.

Also normally how many months' bank statements are requested by the OR?

6 years would be nice But the OR will quite used to people who can't even find 6 months.

One area I need to figure out is the medical bills. If you have to go to the hospital here, the bills are huge, but I am not quiet sure how to convert this into monthly expense.

Can you get insurance cover to cover the co-pay? Private health insurance isnt a nomally allowable expense in the UK, but I think it would be elsewhere

seward815

Thank you all!
I could potentially buy an insurance to cove the co-pay, which would give me monthly expense estimate.
Couple of other questions please:
1) At present I have 2 credit cards, there is no outstanding balance on either card. Should I cancel the cards before applying for bankruptcy? What happens if I don't cancel them and declare them in the bankruptcy form?
2) I also read in another forum that the OR would normally write to my bank in the US. Has any one had any experience with this? Would this affect my credit rating in the US?

To Jenny1983: You can't, because the bank has repossessed the property