SOA - any comments welcome

baglady

here is my soa. I've got my interview with the OR on Monday morning.


Here's a brief outline - I'm self employed so my income varies from month to month. I will do all I can to get more income. I work part time at home and also part time with an agency but all self employed work.


I forgot to include gym costs of £52 - I know I will probably have to cancel this.


I've put £100 down for business costs as an estimate - for marketing, stationery, computer ink.


The holiday, emergency, and presents are estimates.


The mobile is high as I have a shared plan for 2 phones - one is personal and one is for business. My contract comes up for renewal in November so I will go for a cheaper contract.


I bought my place over 13 years ago - think it was £90,000 I am paying interest only. From zoopla it is worth approx. £200,000 to £240,000


I just realised that I've not put in anything for dentists, plus I wear glasses.


Please advise me on what type of figures are going to be allowed.


Thanks in advance for your all your help so far. I'll be back to check on this in a few hours.










Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1500
Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 37
Telephone (land line)................... 25
Mobile phone............................ 60
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 10
Presents (birthday, christmas etc)...... 20
Haircuts................................ 40
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 50
business costs.......................... 100
Total monthly expenses.................. 1312

Assets
Cash.................................... 0
House value (Gross)..................... 22000
Shares and bonds........................ 100
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 22100

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 91000....(320)......0
Total secured & HP debts...... 91000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
first credit finance...........6200......0.........0
electricity....................1986......0.........0
lloyds credit card.............2000......0.........0
hmrc tax.......................2000......0.........0
ground rent/ins................2142......0.........0
hmrc nat ins...................121.......0.........0
Total unsecured debts..........14449.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,312
Available for debt repayments........... 188
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 188
Personal Balance Sheet Summary
Total assets (things you own)........... 22,100
Total HP & Secured debt................. -91,000
Total Unsecured debt.................... -14,449
Net Assets.............................. -83,349
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Cobalt77

baglady wrote: »

I bought my place over 13 years ago - think it was £90,000 I am paying interest only. From zoopla it is worth approx. £200,000 to £240,000

Shouldn't the house value in the above calc be £220,000 and NOT £22,000?

And, if I have taken your figures correctly, that would give you a net asset value on the property (taking lower value) of approx £110,000? (or is your mortgage more than £91,000?)

If the property is in your sole name, that would equate to a £110K asset there which the OR will almost certainly want to grab.

If so, why the hell are you going BR as you have sufficient equity in your property to cover all your debts? (or am I missing something here?)

If those property equity figures are correct, have you had advice from Stepchange or similar?

lilybankrupt

I've added some thoughts below, but the main thing I would say is you need to declare your income AFTER business costs. This would be the same as the figure you declare in your tax returns - income minus costs = profit - and it's the profit that is your pre tax 'take home pay'.

baglady wrote: »

here is my soa. I've got my interview with the OR on Monday morning.


Here's a brief outline - I'm self employed so my income varies from month to month. I will do all I can to get more income. I work part time at home and also part time with an agency but all self employed work.


I forgot to include gym costs of £52 - I know I will probably have to cancel this.


I've put £100 down for business costs as an estimate - for marketing, stationery, computer ink.


The holiday, emergency, and presents are estimates.


The mobile is high as I have a shared plan for 2 phones - one is personal and one is for business. My contract comes up for renewal in November so I will go for a cheaper contract.


I bought my place over 13 years ago - think it was £90,000 I am paying interest only. From zoopla it is worth approx. £200,000 to £240,000


I just realised that I've not put in anything for dentists, plus I wear glasses.


Please advise me on what type of figures are going to be allowed.


Thanks in advance for your all your help so far. I'll be back to check on this in a few hours.










Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1500
Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 37
Telephone (land line)................... 25
Mobile phone............................ 60 busines phone should be a business cost
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 160 I'd increase this to around £250?
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100 you'll need to show what this is for, if it's business travel then again this should be included in business costs
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 10
Presents (birthday, christmas etc)...... 20 not normally allowed, up groceries to cover
Haircuts................................ 40 I think £20 is the max you will be allowed?
Entertainment........................... 50 not normally allowed
Holiday................................. 50 I think £20 is the max
Emergency fund.......................... 50 £10 allowed
business costs.......................... 100
Total monthly expenses.................. 1312

Assets
Cash.................................... 0
House value (Gross)..................... 22000
Shares and bonds........................ 100
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 22100

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 91000....(320)......0
Total secured & HP debts...... 91000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
first credit finance...........6200......0.........0
electricity....................1986......0.........0
lloyds credit card.............2000......0.........0
hmrc tax.......................2000......0.........0
ground rent/ins................2142......0.........0
hmrc nat ins...................121.......0.........0
Total unsecured debts..........14449.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,312
Available for debt repayments........... 188
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 188
Personal Balance Sheet Summary
Total assets (things you own)........... 22,100
Total HP & Secured debt................. -91,000
Total Unsecured debt.................... -14,449
Net Assets.............................. -83,349
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

baglady

Cobalt77 wrote: »

Shouldn't the house value in the above calc be £220,000 and NOT £22,000?

And, if I have taken your figures correctly, that would give you a net asset value on the property (taking lower value) of approx £110,000? (or is your mortgage more than £91,000?)

If the property is in your sole name, that would equate to a £110K asset there which the OR will almost certainly want to grab.

If so, why the hell are you going BR as you have sufficient equity in your property to cover all your debts? (or am I missing something here?)

If those property equity figures are correct, have you had advice from Stepchange or similar?

I put the wrong figures in for the house value as I couldn't put in any commas so got confused with my zeros!


Yes the property is in my sole name.


I was made bankrupt by First Credit who took over the chasing of a closed Lloyds Bank account debt. A few days before the bankruptcy hearing I offered £120 a month which was refused as they said they didn't think I would be able to pay it. At that time I had said my earnings were £1,200 a month. At court I offered £150 and this was also refused. Had I acted sooner I am sure I would have avoided the current mess that I am in.


Again I left it late speaking with stepchange, they helped me put an initial SOA together (not this one) but I was doing it with numbers off the top of my head. The person I spoke to at the time didn't think I would be made bankrupt! However I will call the insolvency section for more advice.


I have had a few letters from insolvency practioners who I guess trawl the London gazette.

baglady

lilybankrupt wrote: »

I've added some thoughts below, but the main thing I would say is you need to declare your income AFTER business costs. This would be the same as the figure you declare in your tax returns - income minus costs = profit - and it's the profit that is your pre tax 'take home pay'.

Thank you lilybankrupt, the amount of £1500 was the amount before business costs. I got confused as to where figures regarding my business should be put.



I will make the changes you've suggested.


I know that I've got a leak with my roof that needs to be sorted before it becomes a bigger issue. Am I allowed any provision for this as I think it will cost a about £500 to fix.


It's going to be a long night as I fill in the green form.

HappyMJ

I still don't get why you are allowing the process to continue. You have an asset worth £220,000 yet only owe £91,000 against that asset. The OR may make you sell the house and rent to release enough equity to cover your debts. You need to avoid that happening. Can you find someone to pay First Credit for you and you pay them back?

baglady

HappyMJ wrote: »

I still don't get why you are allowing the process to continue. You have an asset worth £220,000 yet only owe £91,000 against that asset. The OR may make you sell the house and rent to release enough equity to cover your debts. You need to avoid that happening. Can you find someone to pay First Credit for you and you pay them back?

Because I have been made bankrupt I believe I have to pay back all the creditors and not just First Credit plus costs. Yes I am thinking if I can ask someone to cover all the debts. I have been thinking of ways to get the money. I do want to avoid losing my home. I am terrified and have not been sleeping. No one knows what is happening apart from one friend.

HappyMJ

baglady wrote: »

Because I have been made bankrupt I believe I have to pay back all the creditors and not just First Credit. Yes I am thinking if I can ask someone to cover all the debts. I have been thinking of ways to get the money. I do want to avoid losing my home.

If you can get someone with enough money to cover all your debts and the court fees then do that and the process stops and you won't be forced to sell.

People who go bankrupt and keep their homes have very little equity in them. You have plenty of equity. Can you remortgage? You may be self employed but a broker will help you find a mortgage and you can clear all your debts. The interest rate will be high but you can keep your house and remortgage in a few years.

baglady

HappyMJ wrote: »

If you can get someone with enough money to cover all your debts and the court fees then do that and the process stops and you won't be forced to sell.

People who go bankrupt and keep their homes have very little equity in them. You have plenty of equity. Can you remortgage? You may be self employed but a broker will help you find a mortgage and you can clear all your debts. The interest rate will be high but you can keep your house and remortgage in a few years.

Thanks for your suggestions.

downhillfast

HappyMJ wrote: »

You have plenty of equity. Can you remortgage? You may be self employed but a broker will help you find a mortgage and you can clear all your debts. The interest rate will be high but you can keep your house and remortgage in a few years.

This may not be as straightforward as you think as technically the OP is already bankrupt. Without criticising the OP this just highlights how important it is to deal with your financial problems as soon as possible.

I'd imagine the best course of action would be to speak with the OR before doing anything now as the last thing the OP needs is for the OR to think they are already trying to obtain credit (mortgage) whilst bankrupt.

I think the OP needs to seriously consider that the OR is going to want to realise the equity in the property by means of sale... seems a shame for such a minor debt in comparison with the value of the asset but they will want the money from somewhere. The only real way to avoid losing the house is for a friend or family memeber to pay all debts and costs.

baglady

downhillfast wrote: »

This may not be as straightforward as you think as technically the OP is already bankrupt. Without criticising the OP this just highlights how important it is to deal with your financial problems as soon as possible.

I'd imagine the best course of action would be to speak with the OR before doing anything now as the last thing the OP needs is for the OR to think they are already trying to obtain credit (mortgage) whilst bankrupt.

I think the OP needs to seriously consider that the OR is going to want to realise the equity in the property by means of sale... seems a shame for such a minor debt in comparison with the value of the asset but they will want the money from somewhere. The only real way to avoid losing the house is for a friend or family memeber to pay all debts and costs.

Thanks Downhill fast, I totally agree with you. All this mess and stress could have been avoided if I had taken control a lot sooner and dealt with my finances and debt. I'm not sleeping and trying to not get overwhelmed but it is not easy.

I had my interview with the OR this morning and basically although she could not give advice the upshot is that if I can get £20,000 within the next 2 weeks and pay all the creditors plus the OR costs of approx £1,800 then the bankruptcy can be annulled. I will have to speak to family and friends to see if collectively I can get the money.

An IVA was a possible option but unlikely due to the equity in the property and the likelihood that the trustess would not want to wait for their money.

This is truly a lesson to anyone who is burying their head in the sand like I did in terms of dealing with debts.