Should he go bankrupt ?

young321

youngbuck2 wrote: »

In terms of the money/car question:

-Yes, if he goes bankrupt and receives a lump sum/cash gift whilst undischarged (in the first year of bankruptcy), it is likely the Official Receiver (OR) will want the money handed over.

-Does the car belong to your other half? If the car is a reasonable value and not an extravagant purchase and needed for work/travel, then the OR will most likely allow him to keep it. If he has a £50,000 Porsche then it's a different story, but a regular family car should be fine.

Our car is in his name, it was originally got from Carcraft and we thought it was on hire purchase. As it turns out we found out that Carcraft are now in administration and it's not hire purchase but actually a unsecured loan. The car is probably worth £5,000.

Really hoping we do get money back to get a different car as I really can't imagine not having one now with two children to ferry about

young321

Can someone please advise me further? Should I repost the SOA with the benefits I recieve in?

young321

Hi


I've updated his SOA to include the benefits that I receive each month - could someone please help to review and advsie if this looks ok to submit in our 6.28 document?


Thanks


Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 767
Partners monthly income after tax....... 784
Benefits................................ 821
Other income............................ 0
Total monthly income.................... 2372
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 505
Management charge (leasehold property).. 0
Council tax............................. 83
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12.12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 550
Clothing................................ 90
Petrol/diesel........................... 80
Road tax................................ 30
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 652
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 21
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 40
Total monthly expenses.................. 2472.12

Assets
Cash.................................... 0
House value (Gross)..................... 137100
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 142100

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................10000.....10........0
Credit card....................6000......5.........0
Credit card....................12000.....10........0
Overdraft......................1200......15........0
Store card.....................395.......0.........0
Personal loan..................11100.....225.......0
Car loan.......................12067.....10........0
Total unsecured debts..........52762.....275.......-

Monthly Budget Summary
Total monthly income.................... 2,372
Expenses (including HP & secured debts). 2,472.12
Available for debt repayments........... -100.12
Monthly UNsecured debt repayments....... 275
Amount short for making debt repayments. -375.12
Personal Balance Sheet Summary
Total assets (things you own)........... 142,100
Total HP & Secured debt................. -0
Total Unsecured debt.................... -52,762
Net Assets.............................. 89,338

Pricivius

I'm far from an expert and others will no doubt review your latest SOA shortly, but I would suggest you need to include the mortgage and the rent received. Your OH should be accounting to HMRC for tax on the rental income less allowable expenses such as gas safety certificates etc. The OR will want to look at this asset and the income he is receiving from it.

luvchocolate

Hi..is your road tax on 1 car really £30 a month?

young321

Just to quickly answer the questions thanks

No the car tax is only £30 a year so I guess that would mean I put in £2.50 here.

Also, my OH says for his house which is rented out: he only makes £10 per month profit and this £10 is paid on their overdraft fee (which is listed as one of his debts)

Hope that helps

luvchocolate

I really think the mortgage and the rental income should be in there, it should show everything that comes in and goes out.

owlet

Definitely incude the mortgage, rent income & show compulsory expenses on outgoings.

The last thing you want to do is to be seen as not cooperating fully with the OR.

If you re do it incuding the changes we can look again.

I've asked Tigerfeet to pop back & take a look.

young321

owlet wrote: »

Definitely incude the mortgage, rent income & show compulsory expenses on outgoings.

The last thing you want to do is to be seen as not cooperating fully with the OR.

If you re do it incuding the changes we can look again.

I've asked Tigerfeet to pop back & take a look.

Thanks owlet. So just to clarify, do you mean I should include the amount of £137,100 for the value of his mortgage under both Assets and Mortgage.


Do you also mean to show the £10 he makes from the rent income and put that somewhere on the SOA - Not sure where?

Also, what are compulsory expenses on outgoings?


Thanks

young321

Thanks - I can't thank you enough for all your advice to date - we really appreciate it as this process is so confusing! :-)


So I've entered the amount of the mortgage on his owned house plus I've added the monthly mortgage payment (£525). As I've mentioned before the rent on his owned house is £535 a month. The £10 profit each month I've now entered as Other Income - Is this the correct place to enter this?


Another question is as this is his bankruptcy form - how come he includes all the bills which are actually paid for by me?


Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1


Monthly Income Details
Monthly income after tax................ 767
Partners monthly income after tax....... 784
Benefits................................ 821
Other income............................ 10 This is what he makes each month after the rent is paid on the house he owns
Total monthly income.................... 2382


Monthly Expense Details
Mortgage................................ 525
Secured/HP loan repayments.............. 0
Rent.................................... 505
Management charge (leasehold property).. 0
Council tax............................. 83
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12.12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 550
Clothing................................ 90
Petrol/diesel........................... 80
Road tax................................ 2.5
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 652
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 21
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 40
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 2969.62

Assets
Cash.................................... 0
House value (Gross)..................... 138000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 143000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 137100...(525)......0
Total secured & HP debts...... 137100....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................10000.....10........0
Credit card....................6000......5.........0
Credit card....................12000.....10........0
Personal loan..................11100.....225.......0
Store card.....................395.......0.........0
Overdraft......................1200......15........0
Total unsecured debts..........40695.....265.......-

Monthly Budget Summary
Total monthly income.................... 2,382
Expenses (including HP & secured debts). 2,969.62
Available for debt repayments........... -587.62
Monthly UNsecured debt repayments....... 265
Amount short for making debt repayments. -852.62
Personal Balance Sheet Summary
Total assets (things you own)........... 143,000
Total HP & Secured debt................. -137,100
Total Unsecured debt.................... -40,695
Net Assets.............................. -34,795