KAC journal and questions.

KAC_2

Hi all,

New to the boards but not new to the being broke and in need of sorting my debts once and for all. Wanted to do a thread not just as a place to ask questions but also a journal of sorts for my own reference.

I'm mid thirties earning £20k per year with debts of £50k+. 1 child I pay maintenance for plus 2 step children that I don't but I have all three of them together on my time as I am the only dad they've had. I have let things slide for a long time due to diagnosed depression and trying to then get my head straight so that figure is very much a guesstimate till I sort getting my credit files etc. I'm sure my creditors don't care in the slightest but it's been more important to me to get myself functioning again than deal with the worry from my debts. Head in sand approach may not be recommended but for a long time I was in no fit state to deal with it all.

I'm seperated but not divorced from my ex approaching 2yrs. No legal separation at this point either but I moved out 18 months ago after several months in house separation. Story for another time maybe but I'm waiting for her to pay for the divorce as She wanted it and I can't afford it. Only mention it as a large part of my debt is from a voluntary repossession of our old home several years ago which left us with a shortfall in the region of £30k. This debt is a joint liability in both names.

As I understand it, I would include the full £30k on my application. If successful, this would release me from any obligation or commitment re that £30k but they are likely to go after the full amount from my ex? This won't affect my application but is important re the not always easy communication with the ex.

The remaining £20k was largely accrued while we were together but is in just my name. There were other debts in her name only, but they were largely dealt with prior to separation or by her afterwards. So yeah 20k approximately in loans, overdrafts and credit cards. I won't bore anyone with the details of how that came about, but the mental health plays a part. What was affordable became a huge weight around my neck when I was unable to work for a while and our/my finances never recovered until the shortfall landed on top of it all.

So since separating, I have no where to live of my own, I've moved from renting a spare room form a stranger to now living semi rent free at my Mums while saving the money for BR which I have finally done. Semi rent free as I have contributed what I can to her based on whatever is left when next payday arrived. Quite informal, no rent book etc.

Now for my questions. With my current living arrangements I actually do have a little surplus income. This has been used to save the money needed for BR. mum has now agreed a sale on this property though and will be moving away from the area in the next couple of months depending how quick the sale moves along. Once I am renting somewhere again which of course was always the plan, I will have no surplus income for debts but I want to file now. Can I file based on typical lower end rents etc for the area? Or do I have to file based on factual current information?

Assets wise I basically have none. An iPad and an xbox that were gifts and an old bicycle that I use for work. All marital assets were left behind with the ex and the kids.

Spending wise, I don't smoke at all, no money costing hobbies at present. I spend a lot on travel due to living a long distance from my children so going up to see them and having them come down here to me is pricey

I'm looking at buying a new bike on the cycle2work scheme as the old one is starting to show it's age and becoming less than reliable. As long as my finances including the wage deduction for that add up is that likely to be seen as an acceptable expense?

Very brief I&O;

Income 1370; post bike would be 1320 aprox.

Outgoings;

Child maintenance 180
Travel 200
Food,clothes etc 200 ( just me but plus 3 children on some weekends)
Phone 15
HMRC debt 30

Current real expenditure 575.

Typical rent in the area for 1 bed flat/apartment is 600 but I'm looking at the £500 lower end.
I'm estimating 175 council tax and utilities

Adding these to the current expenditure comes to 1300. Leaving £20 for sundries.

Any and all feedback is gratefully received. It wouldn't surprise me at all if I'm missing something obvious and apologies if I've bored anyone to sleep!

JCS1

your income and outgoings need to be as at the date you go to court. I would however add a note about the house being sold, etc, and that once you move into rented you will submit a new I&E.

What is the HMRC debt that you are paying £30 a month towards? It might be included in your BR if you can provide the details.

KAC_2

Hmrc one is overpaid benifits from end of time with the ex im working on the basis is cant be written off. Not sure how longs left on it actually now i think on it.

I need to break my figures down more to cover tv licence haircuts etc too. Ill probably have to skim that out of food as i manage to get by on very little food bills except when i have the kids.

longtermplanner

KAC wrote: »

a large part of my debt is from a voluntary repossession of our old home several years ago which left us with a shortfall in the region of £30k. This debt is a joint liability in both names.

As I understand it, I would include the full £30k on my application. If successful, this would release me from any obligation or commitment re that £30k but they are likely to go after the full amount from my ex? This won't affect my application but is important re the not always easy communication with the ex.

yes, correct, they will pusue your ex for the full amount. Incidentally you say "if sucessful", this isn't in doubt, your bankruptcy petition will not be refused.

Now for my questions. With my current living arrangements I actually do have a little surplus income. This has been used to save the money needed for BR. mum has now agreed a sale on this property though and will be moving away from the area in the next couple of months depending how quick the sale moves along. Once I am renting somewhere again which of course was always the plan, I will have no surplus income for debts but I want to file now. Can I file based on typical lower end rents etc for the area? Or do I have to file based on factual current information?

File now and then notify the OR when you have moved of your new cirucmstances.

I'm looking at buying a new bike on the cycle2work scheme as the old one is starting to show it's age and becoming less than reliable. As long as my finances including the wage deduction for that add up is that likely to be seen as an acceptable expense?

yes

HMRC debt 30

this will be wiped out when you go bankrupt

The only problem to me looks like your high travel costs to see your children. Do these show clearly on your bank statement at present? If they do, then you can argue they are part of your normal domestic expenditure but the OR may still not allow that much.

I would add in a few extra lines and skim the money out of your travel costs, not food. This may give you some wiggle room to have money to spend travelling to see your children:
- holidays £20
- dry cleaning £10
- haircut £10
- clothes £30
- food & toilietries £170
- TV licence £12
-

KAC_2

I will revisit my figures and post a detailed breakdown when ive done so but that guidance is very helpful.

Costs so much seeing the boys as i dont have transport so its all by train and coach. I can see the sense in adjusting the figures a little though.

KAC_2

Small development. My girlfriend has suggested we bring forward our plans for me to move in with her. Was already in mind but we originally intended to wait till my financed were in order.

She is fully aware of my situation. I believe if I move in and then file she is unaffected as we do not and never have had any financial connection. She rents through housing association, I've suggested she speak to them before we do anything just to check it how me moving in and then filing would affect that. I just wanted some clarification.

Future credit isn't an issue as she is about as keen on it as I am in ever going down that road again.