Considering Bankruptcy - Feeling so anxious

AMay

Thank you Tigger, I will look at our SOA a lot closer.

Is there anywhere I can find guidelines that we can have for a family of 4 please?

I have just called StepChange, I was unable to go through everything without my husbands consent, so he will call them tonight when I'm at work and I'll call them back tomorrow to start the process!

tiggerbodhi

Hi,


Don't believe there are published guidelines for the SOA although I think the OR do have a "manual" that says what is acceptable, mainly you can take advice from Stepchange and people you know who have gone through the process from experience.


Remember that a SOA for BR is often higher "allowances" than for a DMP or IVA, and the SOA is for deciding on a IPA which is an Agreement, so you have to agree to it, it is not imposed, if you can justify and argue your case for expenses and they are allowed all well and good, if you and the OR cannot agree it goes to court and an IPO is done, the OR does not like doing this! (extra paperwork, having a judge look into his/her work, time and agro)

dancingfairy

You don't have to both go bankrupt. If you qualify, you could do a DRO and your husband could go bankrupt, the main benefit to doing it like that would be that a DRO is substantially cheaper.
df

tigerfeet2006

AMay wrote: »

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 (the OR won't allow this so see if you can negotiate a lower package or get another provider or PAYG sims.The old contracts can then go into the BR.)
TV Licence.............................. 13
Satellite/Cable TV...................... 70 (can you go down to the basic package? This is usually acceptable.)
Internet Services....................... 20
Groceries etc. ......................... 400 £550
Clothing................................ 50 £90
Petrol/diesel........................... 200
Road tax................................ 18 (for 2 cars?)
Car Insurance........................... 124
Car maintenance (including MOT)......... 20 (£50 for 2 cars)
Car parking............................. 22
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 (£5 per child per week for activities. £2 primary £3 secondary for school dinners.)
Medical (prescriptions, dentist etc).... 5 (£40 for 2 adults)
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 32 (the OR may be interested in this.)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 (some OR's allow, some don't. Leave and see.)
Haircuts................................ 40
Entertainment........................... 20 (some OR's allow, some don't. Leave and see.)
Holiday................................. 20 £60
Emergency fund.......................... 10 £40
(Unnamed monthly expense)............... 0
Gym Membership.......................... 24 (not allowed on SoA unless prescribed by Dr.)
Total monthly expenses.................. 2568[/b]

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.

Have a play with that and re-post.

AMay

Tigerfeet, you're an absolute angel, thank you so much for making those adjustments, I'll have a play tomorrow and repost!

The road tax is monthly for 2 cars, we've got little Eco cars and mine is only £20 a year tax

Thanks so much again!

AMay

Hi,


Our dog decided to chew the laptop cable, so have only just managed to borrow one and get on here!


I have had a play with our SOA and made adjustments as you recommended.


My husbands monthly take home has gone down due a letter we received from HMRC, saying he underpaid tax (something to do with a company car that he had at an old firm), so on his new tax code, he will bring home approx £200 a month less, but I wont know the exact figures until he gets paid on 15th September.


Also, I haven't changed the mobiles, TV, internet or home phone. What is generally allowed?


We're happy to get rid of our current contracts and include them in the bankruptcy, my only concern is that because the actually handsets haven't been paid for yet (as its a 24 month contract - we're approx 6 months in), can O2 block our handsets so we cant put a pay as you go sim in them? We can always buy cheaper phones, but my husband does need a smart phone for work.


Anyway, here is our new SOA. I will be calling StepChange back again within the next 48 hours.


Thanks for all your help.


AMay


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................ 2100
Partners monthly income after tax....... 745
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 2979
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............................ 100
TV Licence.............................. 13
Satellite/Cable TV...................... 70
Internet Services....................... 20
Groceries etc. ......................... 550
Clothing................................ 90
Petrol/diesel........................... 200
Road tax................................ 18
Car Insurance........................... 124
Car maintenance (including MOT)......... 50
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 56
Medical (prescriptions, dentist etc).... 40
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................................. 60
Emergency fund.......................... 40
Total monthly expenses.................. 2913

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

Total unsecured debts..........54575.12..904.85....- [/b]

Monthly Budget Summary
Total monthly income.................... 2,979
Expenses (including HP & secured debts). 2,913
Available for debt repayments........... 66
Monthly UNsecured debt repayments....... 904.85
Amount short for making debt repayments. -838.85
Personal Balance Sheet Summary
Total assets (things you own)........... 1,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -54,575.12
Net Assets.............................. -52,775.12
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

AMay

Would someone mind looking at the above please?

Thanks

owlet

From what I can see, it looks ok apart from your mobiles & satellite/cable tv.

The OR will almost certainly dispute those. I don't think there are any defined figures but the OR will want to see that you have basic packages.

You might be best including the mobiles in your BR & starting again with two cheap phones & sim only contracts.

AMay

Thank you Owlet.

Ok, O2 won't lower our tariff, which means eventually, not only our sims will get blocked, but also our phones will be blocked as they now lock them by imei number.

This means we will be without mobile phones, my husband needs a smart phone for work, and I need a phone, being a working mum etc.

We don't have money to buy a phone, so my question is, will the OR frown upon us taking out a new contract with another provider for a low monthly tariff? Around £30 a month each? And then including our current phones on the BR?

Thanks
AMay.

owlet

How soon are you looking at going BR?

If you have definitely made up your minds that this is the path you are going to follow, then you have options.

1 Cancel all payments to creditors.

2 Use the money for BR fees.

3 You can buy 2 cheap smart phones (my last two were bought from gumtree & been great) then look at giffgaff for cheap sim only deals. I'd have thought you would need to get these to under £20 a month £10-15 is easily doable.

4 If you are going to be a few months before BR, phone your creditors and offer £1 a month token payments. This gives you breathing space & time to get sorted.
If any creditors decline this, then just pay them anyway. Payments to creditors need to be equal.
5 Keep receipts or records of any essential purchases because the OR will probably want to see them & it makes your life easier if you have details to hand.

Sorry this is a bit basic but haven't got time right now.