Considering Bankruptcy - Feeling so anxious

tigerfeet2006

It will be as individuals. Get your SoA up and let's have a look before talking IPA's.

AMay

Good Afternoon,

My husband and I have been crunching numbers this morning, please see below the SOA we have put together. The higher wage is my husbands, will this be ok, or do you need to see them on two separate SOA's?

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 745
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 3179
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 20
Mobile phone............................ 110
TV Licence.............................. 13
Satellite/Cable TV...................... 70
Internet Services....................... 20
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 18
Car Insurance........................... 124
Car maintenance (including MOT)......... 20
Car parking............................. 22
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 32
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 20
Holiday................................. 20
Emergency fund.......................... 10
(Unnamed monthly expense)............... 0
Gym Membership.......................... 24
Total monthly expenses.................. 2568

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1800
Other assets............................ 0
Total Assets............................ 1800

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Debt Mangers Ltd...............106.65....1.........0
Lowell Financial Ltd...........1286.55...5.18......0
Lowell Financial Ltd...........30.94.....1.........0
HMRC...........................6875.35...62........0
Bucan clark and well...........26.26.....1.........0
Studio.........................146.11....10........0
Aqua...........................1205.66...30........0
Vanquis.......................1147.35...55........0
Capital one....................700.......30........0
Capital One....................242.......7.........0
Marisotta......................454.44....30........0
JD Williams....................330.99....20........0
Simply Be......................251.35....9.........0
Look again.....................302.57....10........0
Brilient Gift Shop.............877.08....62........0
NCO Europa ltd.................1043.64...4.17......0
Morecroft Group................684.96....2.73......0
Lowell Financial Ltd...........149.48....1.........0
Global bebdt rec...............9.68......1.........0
Fredrickson....................496.69....1.98......0
Fidelite credit man............405.87....1.62......0
Express Gifts ltd..............157.35....1.........0
EOS Solution uk Plc............469.04....1.87......0
Cap Quest Group Ltd............168.36....1.........0
Cap Quest Group ltd............248.39....1.........0
HSBC Morgage..................6257.75...40........0
LCS Southen Gas................61.51.....2.........0
LCS Southern Elc...............82.34.....2.........0
Lowell - Orange................47.99.....1.........0
Vanquis........................839.06....40........0
Gold Card Cash Plus............539.2.....25........0
Barclay Card...................1093.36...33........0
Ocean Finance..................1607.17...52........0
Capital one....................1200......35........0
Fashion world..................853.62....30........0
Look again.....................574.62....26........0
Brillent Gift Shop.............882.95....62........0
Littlewoods....................569.91....90........0
Very...........................328.07....30........0
Ruthbridge Ltd.................1406.59...5.61......0
Police Crdit Union.............17961.7...71.68.....0
NCEurope Shop Direc............869.85....3.65......0
Lowell Financial Ltd...........1186.48...4.74......0

We have worked out that my debt totals: £17,755.49, my husbands is: £37,805.26

Our cars are both worth less than £1000 each. We both need them for work and school runs.

I think I maybe eligiable for a DRO from 1st October.

My only concern is that we may get punished for obtaining credit outside of a DMP. I am actually petrified!

Thank you for taking the time to look at this for me.

alastairq

My only concern is that we may get punished for obtaining credit outside of a DMP. I am actually petrified!

The Official Receiver is not in the business of punishment.

There is no bar on taking credit under any circumstances....whilst under any debt solution.

Even BAnkruptcy.

The restriction on any credit offer lies with the potential creditor..hence the reason for credit checks?

TakeAwayKing_2

This is the worst idea

Flyright

The Official Receiver may decide to seek a BRO if someone obtains further credit at a point when they were already insolvent. Entering a DMP is a strong indicator that someone has financial problems so obtaining credit thereafter is bound to lead to scrutiny by the Official Receiver.

AMay

What is the worst idea??

AMay

That is my thinking too, but we haven't just taken the credit and not paid it, we've always kept our payments up.
It's only due to a change in jobs that we now can't afford to pay all our debts.

tiggerbodhi

Hi,


Possibly get some perspective on the situation, you are going to take at LEAST 20 years to pay your debt at the current way you are trying to clear it, even if you did get a BRO (unlikely, if you fully co-operate with the OR) rather than an IPA it is unlikely to last 20 years!
As long as your Jobs do not have exclusions for being a BR, you don't want to be a MP, Charity Trustee etc for a year (or the length of a BRO) you will be fine.


Yes it can be terrifying, but you CANNOT be jailed for being BR, you wont be put in the stocks in the local village, as long as you have that light bulb moment and really take control of your finances the BR option could be start of the rest of your life without the stress of living hand to mouth.


You need to look again at your SOA, a lot may not be allowed, mobiles look very high, the Satellite TV will be a push to get through.


Good luck!

AMay

Thank you Tigger

I'm going to call StepChange this morning and go through our SoA.

If we did receive a BRO/BRU, for example an additional 4 years, would we have to continue paying into the IPA for additional 4 years, or is it just the BR restrictions that last the duration of the BRO?

tiggerbodhi

An IPA (and IPO) only lasts for three years from the date it is agreed or imposed (IPA/IPO) so you only pay over surplus income for 36 Months, if your circumstances change during this period you can ask for it to be altered.


A BRO can last between 2 to 15 years, but IMHO and of others to get one this long you have to really transgressed, from your original post the borrowing more money when in a DMP could be seen as reckless, but if you fully co-operate with the OR this does mitigate the level of BRO.


The one thing you will find almost impossible during the BR period and for at least 6 years will be getting credit of any form, so BR is a "kill or cure" moment for budgeting and spending within your means!


As for your SOA...


Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 20
Mobile phone............................ 110 Way to high, look at 2X PAYG sims
TV Licence.............................. 13
Satellite/Cable TV...................... 70 Unlikely to be allowed
Internet Services....................... 20
Groceries etc. ......................... 400 This could be higher for 4
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 18
Car Insurance........................... 124
Car maintenance (including MOT)......... 20 To low for two cars
Car parking............................. 22
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5 To low for 4 people
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 32
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 20 Not allowed
Holiday................................. 20 allowed £10 per person £40
Emergency fund.......................... 10
(Unnamed monthly expense)............... 0
Gym Membership.......................... 24 Unless GP says you have to this not allowed.