Living on a shoestring - again!

kaibear0

I am returning to study for a degree at the ripe old age of 50. The last two years have been horrendous, and circumstances have led to the loss of a well-paid job, my house, my son, and my mind.
Two years ago I had all the above, as well as a practically glitch-free credit record. Now, following the final coffin nail of the repossession and subsequent sale of my house for a £25,000 shortfall, I am about £44,000 in debt and unable to return to work.
But rather than stay flat-bound and on benefits (ESA, Housing, and Council Tax benefits at the moment) I am trying to return to civilisation by taking a degree in art at my local college.
Having spent the last year on a Token Payment Plan through Stepchange, expecting a profitable sale of the house to answer all my financial problems, I have to admit defeat and have been advised to file bankruptcy.
I just want to know what I can legitimately add to my general expenses beyond my minimal outgoings.
As of the beginning of the new term in two weeks, I will lose all benefits. My sole income will be my student loan/grant. I assume my income won't include the loan for student fees (ie £6500 for the year) as these are paid directly to the college. Beyond that I will receive a total of £9,643 in maintenance loan and grant.
This amounts to £803 per calendar month.


The main expenses I have are:
Rent - £375 per calendar month
Electric - average £50/month (on a carded meter)
Landline/broadband - £17 per month
Mobile - £14/month
Council tax - £56/month (once benefits stop)
Food - £?

I don't know what else to put.
I have no car or TV.
I'm single and live alone in a private rented flat close to the college. I have a mobility bus pass so no transport expenses.
At the moment I don't take any meds
At the moment, I still pay my son's phone contract (£25/month) plus he's still always expecting me to buy him things (he's 14) - but I know they won't give me any credit for this because he's not living with me.
At the moment, I don't pay for water, but I'm just waiting for the landlord to tell me that's a mistake.
I can live off soup and salad if I have to for the first year of college, and I only shop at charity shops for clothes.
Most of my possessions disappeared with the house, and I just have second-hand furniture in the flat.


I'm just not sure whether there's anything else I should be putting down.
Thanks for any advice offered.


PS: As sorry as I have made this all sound, I'm actually quite optimistic. I'm a firm believer in things happening for a reason, and I'm quite hopeful that there's a light at the end of this very unexpected tunnel ....


PPS: Will they accept that my monthly income will be reduced to £745 a month if I have to pay the £705 for the bankruptcy out of the student loan?

mum2one

I dont know if the allowable items are much different that an soa for creditors. but I would look at the basic..

rent - 375
gas -0
elec - 60 (use more winter than summer)
landline /band - 17
mobile - 14
council tax -56

(got the above)

Some thoughts....
food - £150 (food, cleaning, toilettires)
water rates £40
contents ins £10
travel - £15 (may need a taxi?)
medication £9 - you may want a pre-payment cert (the money towards one!)
supplies for your course - £30
emergency fund £10
entertainment £20
smoking... does get expensive.
child support £20 (guessing on esa if throu csa would be £5 per week deductable at source)
----

It is worth asking stepchange as there are charities that can help out with bankruptcy fees xx

tigerfeet2006

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

Monthly Income Details
Monthly income after tax................ 803
Partners monthly income after tax....... 0
Benefits................................
Other income............................ 0
Total monthly income....................

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments..............
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 56
Electricity............................. 50 Does this include the fact that payments vary through the year?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 17
Mobile phone............................ 34
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking...0
Other travel............................ 15 For the occasional taxi when needed.
Childcare/nursery....................... 0
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 15 for the occasional prescription
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20 you really need to get some with accidental damage.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 25
Emergency fund.......................... 10
University Supplies.......................How much do you think you'll need?
Total monthly expenses.................. 0

Haven't added that up but have a play with the figures on this link http://www.stoozing.com/calculator/soa.php

You won't get an IPA

kaibear0

Thank you both for the very quick and very helpful replies.
I have been searching for a generalised template for allowable reasonable expenses, but if such a beast exists, it seems to be hidden away amongst responses to individual questions or on websites belonging to advisors who then chase me down for their business.


I will tweak these numbers to fit my income, as I have been informed that if there's any chance my potential outgoings exceed my income, they will not allow the bankruptcy because I will be considered a future credit risk. Is that true?


As it stands right now, I will just have to live without certain things for at least the first year.


I don't smoke so no worries there.
I'm not required to pay child support.
I have no TV licence, because I only watch catch-up TV and youtube.


My electric is currently a £10 top-up every nine or ten days, but this is with no use of the electric oven (I only use the microwave), no hot water for washing, and no turning on of the electric wall heaters. This is one area I need to get back some freedom to be "normal" which is where the £50 comes from (I figure an average of £10 a week with heat).


I will buy some contents insurance.


Luckily, as I did an access course last year for art, I was given a discretionary grant for supplies, so I have bought a lot of stuff that I can still use this year. I have been awarded a disabled student allowance for stationery/printing costs this year, and they have supplied some computer equipment. I suppose I won't know what else I'll need until I need it ...


I notice that you both agree with an Emergency Fund. Is the "holiday fund" an allowable expense? Similarly, is there scope for "entertainment"? I have been going to Slimming World where I am expecting to reach my target weight by Christmas. It's important to me that I keep going to SW (physical and mental health-wise), but wondering whether there's a legitimate expense category open to me, or do I need to give it up?


Lastly, Tigerfeet, I notice that you have added my son's mobile phone bill into the "other child related expenses," but I am constantly being reminded that he is no longer a dependant of mine, so I have no legal or financial responsibility for him.
It has prompted me to open another thread with a question about this.

Thank you once again for your help

tigerfeet2006

kaibear0 wrote: »

Thank you both for the very quick and very helpful replies.
I have been searching for a generalised template for allowable reasonable expenses, but if such a beast exists, it seems to be hidden away amongst responses to individual questions or on websites belonging to advisors who then chase me down for their business.


I will tweak these numbers to fit my income, as I have been informed that if there's any chance my potential outgoings exceed my income, they will not allow the bankruptcy because I will be considered a future credit risk. Is that true?

No, you just say that you will cut back in some areas BUT you shouldn't run at a deficit if you have been sensible and sorted yourself out a viable budget that shows you can go forward.

As it stands right now, I will just have to live without certain things for at least the first year.


I don't smoke so no worries there. Brill. Not allowed in BR anyway
I'm not required to pay child support.okie dokie
I have no TV licence, because I only watch catch-up TV and youtube. very sensible


My electric is currently a £10 top-up every nine or ten days, but this is with no use of the electric oven (I only use the microwave), no hot water for washing, and no turning on of the electric wall heaters. This is one area I need to get back some freedom to be "normal" which is where the £50 comes from (I figure an average of £10 a week with heat).

Thanks for clarifying.

I will buy some contents insurance. Excellent


Luckily, as I did an access course last year for art, I was given a discretionary grant for supplies, so I have bought a lot of stuff that I can still use this year. I have been awarded a disabled student allowance for stationery/printing costs this year, and they have supplied some computer equipment. I suppose I won't know what else I'll need until I need it ...

If you have no money left in your budget then it can come from groceries.


I notice that you both agree with an Emergency Fund. Is the "holiday fund" an allowable expense? Similarly, is there scope for "entertainment"? I have been going to Slimming World where I am expecting to reach my target weight by Christmas. It's important to me that I keep going to SW (physical and mental health-wise), but wondering whether there's a legitimate expense category open to me, or do I need to give it up?

Yes a holiday fund is an allowable expense to put down but that is not to say the OR will check you have a holiday. Once it has been agreed how you spend it is up to you. SW is not an allowable expense but as I said what you spend your holiday fund on is up to you.




Lastly, Tigerfeet, I notice that you have added my son's mobile phone bill into the "other child related expenses," but I am constantly being reminded that he is no longer a dependant of mine, so I have no legal or financial responsibility for him.
It has prompted me to open another thread with a question about this.

He is your son I assume he comes to visit you and you feed him etc. I think I put his mobile with yours under mobile and put in a sum under childs expenses for when he is with you.



Thank you once again for your help

Hope that helps.

alastairq

Lastly, Tigerfeet, I notice that you have added my son's mobile phone bill into the "other child related expenses," but I am constantly being reminded that he is no longer a dependant of mine, so I have no legal or financial responsibility for him.
It has prompted me to open another thread with a question about this.

Who, exactly, is dong the 'constant reminding?'

On the assumption he is your son [rather than your ex's son].....then the Child Support Agency [and the FAmily Court] have a very different view on that subject.

Both parents have a responsibility towards a child. If, as his Mum, you have some sort of shared access, [ie your son comes to stay with you for certain periods of time?]....then it really is irrelevant who has residency.
[Are you aware that, if your son's Dad has to consider engaging a child minder to look after your son if going out, then his Dad must call upon you to fulfill that role first?]

If your son has even a tentative access to you, that can be claimed as an expenditure.

The fact is, as parents you are jointly liable for your son's welfare, financially as well as practically.

The other parent may not demand financial support, but that is irrelevant.

Therefore your son can be categorised as a 'dependant' of yours.

And yes, you still have a 'legal' responsibility to him...as one of his parents.

kaibear0

Thank you again to the replies.


For fear of taking this down a road I hadn't intended, but for clarification to both Tigerfeet and Alistairq, my son is currently in care of the Local Authority, not with a family member. Technically, he is on a full care order, and despite stating I have some "shared" parental responsibility, it is far from 50/50. The percentages are subject to change depending on what issue may be up for debate.


The people doing the "constant reminding" that he is no longer legally my dependant and, therefore, not my financial responsibility, are any professional agencies I have dealings with, eg. Social Services, Council, Inland Revenue, ESA, etc


However, in real terms, I still have weekly contact with him, I am still expected to pay for meals and/or activities during those contacts, and my son still asks me to buy him things. And of course, there are birthdays and Christmases to consider too. I have been told that, as he is in care, all his material needs are met by his carers - but any parent will know that children don't live or think by rules, and teenagers especially have little interest in limiting themselves to necessities only.


Is anyone aware of how this situation is viewed during bankruptcy proceedings? Does anyone know if an OR will still allow for "child-related expenses" and/or his mobile phone bill in this situation?


I'll be happy to post this line of enquiry to another thread if needed.


Thanks again.

tigerfeet2006

My apologies, I hope you don't think we were prying. It was very brave of you to post that.

Please don't worry about what the OR thinks, they are resonable expenses that help your son. If you want to spend money on him that is fine. As I said earlier about the holiday fund the OR will not be on your back watching every penny that is spent and on what.

mum2one

I've had some really good advice from tiger feet. With some of the budgets if there is an underspend it can be used for another section xx

bloolagoon

Are you eligible for PIP?

Please look into this as there are rules regarding being a student that could dramatically increase your income.

Pricivius

I could be wrong, but as a student living alone, are you not exempt from paying Council Tax? Check with your local authority...