Court on Fri - last minute worries

pandamania

I am typing up the online forms for my husband who is intending to declare himself bankrupt on Friday morning. My OH gets paid cash which is then paid into my account, and the bills are all paid from there. All he holds onto is enough to pay for petrol, so his 'cash in hand' on Friday will be £20 and he will have £6.35 (his working tax credit) in his own bank account.

There are 3 of us including our year old son. Can anyone please tell me if any of our outgoings look unreasonable? I am guessing some figures as I have no idea how many pairs of shoes our son will need for example as he isn't quite walking yet.

Also our tax credits are due to be reduced because of our child's first birthday, but then the Housing Benefit might be increased.

Assets: Tools used for work: approx value £600; Car worth about £700
Motorcycle loaned by employer is worth about £1500 according to boss (he sells bikes and OH is a mechanic)but according to OH it's worth about £500 now he's been using it for 3 years! OH uses motorcycle to get to and from work as it's a lot cheaper, he maintains it and pays for tax but it is still owned and insured by employer...could this cause any problems? We need a car because of where we live (rural bus service) and for when the weathers too bad to use the bike sometimes.

Income pcm

Take home pay: 960
Working Tax Credits: 28
Housing Benefit 98

Contribution from Wife:

Child Benefit: 78
Child Tax Credits 218

Total £1,382

Outgoings pcm

Rent 395
Council Tax 62
Water 31
Electric + Gas 59
Groceries/household 350
Clothing & footwear 50
Contents insurance 8
TV licence 12
Telephone 30
2 x Payg Mobiles 10
Dentist 10
Hairdressing 20
Parent & child swimming 13
Motor insurance 17
Car Tax 17
Motorcycle Tax 3
Petrol 140
Car maintenance & MOT 40
Breakdown cover 3
Wife's debt token payment 2
Holiday 40

Total £1,312

Difference: £70

Thanks in advance

PixiePie

Your hairdressing might be allowed a bit higher - you can put it down higher and if it gets knocked off it lets them feel they've knocked something off whilst it not being vitally important (haven't had my hair cut for over 2 years and not dead yet ), so push tha tup to £20, £10 for each of you. Dental I would say is higher, but then I have the worst teeth in the world that cost me literally hundred and hundreds each time I go.

I don't think swimming will be allowed, so be prepared for that to go, hence hairdressing going up a bit - try and hide things where you can Bump the housekeeping up I'd say..you have a child after all. The phone internet might be shify ground as I don't think they allow internet, but then it costs us £30 for telephone without internet, so just loose the word internet there

I hope that helps - others will have better advice on tax credits etc (I don't know if they're counted or not) and just FYI, I haven't actually gone BR yet, but been doing the paperwork etc and stuff and am going to as soon as I have the money so if you want to disregard what I'm saying as I haven't been through the OR yet I won't take offence

Good luck with it all

P

Conor_3

Isn't there an allowance for holidays which you've not entered? I reckon you'd be allowed a bit more on the vehicle maintenance as well as food, clothing and dental - remember there's five of you.

fermi

Conor wrote: »

Isn't there an allowance for holidays which you've not entered? I reckon you'd be allowed a bit more on the vehicle maintenance as well as food, clothing and dental - remember there's five of you.

Yep. Especially for hols/clothing.

As far as holidays are concerned, it is accepted that a bankrupt is entitled to a break from routine and some allowance may be made for a modest holiday. Luxury foreign holidays would be likely to upset creditors but an allowance for a cheap holiday of £60 - £80 per month, which would amount to £720 - £960 p.a., would seem reasonable for a family of four. Any extra would then have to be funded out of surplus income.

An allowance for clothing may be included in the calculation, particularly in families with children. What is reasonable may depend on whether smart clothes are required for work but any amounts in excess of £40 per month for an individual or £80 for a family should be explained. An allowance of £10 per month for adult hairdressing and £3 for a child is reasonable but any expensive hair treatments must be funded from surplus income.

Kj123_2

I think £20 a month for MOT is a bit high. It's only costs about £40ish.

However I also think your car maintenance could be more. Find out how much a new set of tyres are, how much it costs for a service and you'll soon see.....

JulesJay

Just wanted to pop in and wish you well for Friday sweetie.

Let us know how you got on when you can.

Take care

Jules x

rog2

Hi Pm - and good luck to your husband for tomorrow.

The OR WON'T be interested in his tools, as they are for his work, and I would, normally, see no problem with the car, given its value and your rural location. The ONLY questionmark, in my opinion, would be the Motorbike - there have been a few threads where OR has questioned the need for both a car and a motorbike. However, since it belongs to your husband's boss - there should be no cause for concern - I'm not even sure that he needs to declare it.

Hope everything goes well.

philnicandamy

Just to echo what everyone else said...everything crossed for tomorrow for you, i'm sure all will go well, keep in touch & let us know how things go

Phil

pandamania

Thanks for all the advice & good wishes.

Right, I think I need to reword some items. When I put £20 pcm for MOT I meant including the work that will almost certainly need doing. Last year it cost £180, which hubby was pleasantly surprised at considering the car is 12 years old. Maybe I ought to lump car maintenance in with MOT? Year round maintenance hasn't cost too much so far as OH is a mechanic(albeit motorcycles) so can do a lot himself.

Swimming is our only child activity (not for us) of which I think I'm allowed to put one. OH takes our child to a Parent and toddler swimming session once a week.

Holidays: I did originally put £40 pcm for holidays...but took it out because I wasn't sure. I thought that was reasonable as we try to go away for a long weekend twice a year and stay in a B &B or travel inn/lodge.

Hair: Will use the suggested figures...I don't get my hair cut very often but am starting to look like a yeti who cuts her own fringe . As for little 'un - Daddy gave him a no.1 with his clippers when he was 6 months old :eek:. Now it's grown back I will be taking him for proper hair cuts with me from now on.

Off to make some final adjustments...will let you know how OH gets on tomorrow.

Thanks again

pandamania