Stressed and anxious....

Whynot66

Hi guys, long time reader first time poster.

So, from the advice of step change I plan on declaring my self bankrupt in January. I'm really worrie about it, more so if I will be accepted.

I owe around 30k most is with agencies and most is defaulted. I seperated from my wife 3 years ago. I left with nothing (literally). I borrowed 15k to move all the debt into my name. I was in a bad place and I spent another 5k on nothing. I finally got my head together but had nothing, I spent 10k sorting my head out and rebuilding my life and building a home so I could get shared custody of my daughter (which I have).
I now live with my girlfriend, our joint income is £30k. Around 18 months ago I stopped paying all my debts with the intention of going bankrupt. I've been trying to raise the cash. It took a while because I had 3 months sick with no pay. Jan I have the money.
Step change expenditure tells me I have £100 expendable.

My questions

1. I abused my credit after my break up, i knew I couldn't afford it. But having a nice and stable gone for my daughter was priority. Will This "abuse" effect me?

2. Me and my partner are both full time students, we also work full time. After my break up I signed up for a degree, (with the intention of bettering my self for the little one) I am in my third and final year. The first 18 months of sty dent finance I wasted. Since then it has covered expenses. Will wasting this affect me?

3. My current partner for got her mum to borrow 10k for us to clear some debts a while back. It costs us £240 a month (for 2 more years) will I be able to account his as an expense

4. We have 1 student finance payment left, half is owed out as cash and the other half my partner is using to clear the last of her debts. Will I have to account this income into my bankrupsy?

5. Our house costs £750 a month rent, it is £100 above the local average for this size house. Will they make me move?


6. I'm really scared of it all, I understand the implications. My biggest fear is the process and the OR saying no. Could this happen?

7. Finally, are they allowed to look at my partners financials e.g bank statements? This is where my wages are paid.


Thank you for reading and I look forward to your reply

elljay

Right! The best thing to do is to provide us with a SOA (statement of affairs)There's one here http://www.stoozing.com/calculator/soa.php but there are others. The other thing to do would be to ring Stepchange or Nat Debtline or both. Don't just do the online calculator, which is a good guideline but can't answer all your questions, which a real person on the end of the phone can.

If you do those two things it will help you to see the wood for the trees, which will help that panicky feeling that comes over in your post.

The OR won't know or care what the rental price is in your area, they will just assess any payments according to what you actually pay for rent and anything else like utilities etc.

It will be up to the judge to decide on your bankruptcy, not the OR - the OR doesn't come into it until after the order is made. The judge will decide once they've gone through your forms. I don't know the statistics but I bet it's less than 0.000001% a year that are refused. High profile, very unusual cases. Yours may be unusual to you but is very ordinary to the judge.

Others will advise on things like the loan from your girlfriend's mum, I expect the best thing you do is to make sure that's in girlfriend's name, otherwise mum is a creditor along with all the others and will be included in the bankruptcy and lose out. Preferential payments are not allowed so no, it won't be counted as an expenditure for you. If it's in gf's name, she will then have to find the money to repay mum as it won't be allowed for you. You may wish to discuss this with mum and consider options which there are.

It's best to keep your financials separate from your girlfriend's - do you not have your own bank account? I would suggest getting one of the basic ones to keep life simpler.

You've got time to pull this together so don't panic, get fully informed then you'll be ready for Jan.

EJ

tigerfeet2006

Whynot66 wrote: »

Hi guys, long time reader first time poster.

So, from the advice of step change I plan on declaring my self bankrupt in January. I'm really worrie about it, more so if I will be accepted.

I owe around 30k most is with agencies and most is defaulted. I seperated from my wife 3 years ago. I left with nothing (literally). I borrowed 15k to move all the debt into my name. I was in a bad place and I spent another 5k on nothing. I finally got my head together but had nothing, I spent 10k sorting my head out and rebuilding my life and building a home so I could get shared custody of my daughter (which I have).
I now live with my girlfriend, our joint income is £30k. Around 18 months ago I stopped paying all my debts with the intention of going bankrupt. I've been trying to raise the cash. It took a while because I had 3 months sick with no pay. Jan I have the money.
Step change expenditure tells me I have £100 expendable.

My questions

1. I abused my credit after my break up, i knew I couldn't afford it. But having a nice and stable gone for my daughter was priority. Will This "abuse" effect me?

You could possibly end up with a BRU/O which will extend the rules of BR by 2-15 years. You will be discharged after 1 year still.

2. Me and my partner are both full time students, we also work full time. After my break up I signed up for a degree, (with the intention of bettering my self for the little one) I am in my third and final year. The first 18 months of sty dent finance I wasted. Since then it has covered expenses. Will wasting this affect me?

See answer to Q1

3. My current partner for got her mum to borrow 10k for us to clear some debts a while back. It costs us £240 a month (for 2 more years) will I be able to account his as an expense

You will not be able to pay it back, it will be up to your OH to do so.

4. We have 1 student finance payment left, half is owed out as cash and the other half my partner is using to clear the last of her debts. Will I have to account this income into my bankrupsy?

If this is after your BR then YOU cannot pay any debts off. PLEASE BE CAREFUL YOU ARE NOT MAKING PREFERENTIAL PAYMENTS. These can be reversed by the OR.

5. Our house costs £750 a month rent, it is £100 above the local average for this size house. Will they make me move?

You won't be made to move for £100.


6. I'm really scared of it all, I understand the implications. My biggest fear is the process and the OR saying no. Could this happen?

It is the judge who has the ultimate say. If you have taken the appropriate advice from National Debtline and/or Stepchange and they have given it as an option then there will be no problems. They are respected sources of advice.

7. Finally, are they allowed to look at my partners financials e.g bank statements? This is where my wages are paid.

You need to seperate your finances and get your own account as any link with you and your BR will bring your OH's rating down. Please look at getting a basic account with no OD from someone like the Co-op, Barclays or Nat West.
The OR may ask to look at the statements if your money has been going into there.


Thank you for reading and I look forward to your reply

iF YOU POP UP YOUR sOa THEN SOMEONE WILL HAVE A LOOK. (oops. caps.)

Whynot66

Hey, Thanks for you replies, I will do the SOA shortly.

Do I include all of out household outgoing? i.e my partners car insurance and fuel etc?

My wages go into my RBS account then I send it straight to her current account. I do this because my o/d is maxed and I'm scared they will take it away.

Then x amount gets sent to our bills account (in her name) to cover all the outgoing.

Should I open a new account and move all of the outgoings to it?

Whynot66

If so what about her debt repayments?

tigerfeet2006

Whynot66 wrote: »

Hey, Thanks for you replies, I will do the SOA shortly.

Do I include all of out household outgoing? i.e my partners car insurance and fuel etc?

You include all joint household spendinf ie: rent, utilities, groceries and your personal spending ie: car, mobile. You put your full income down and her contribution to the joint household bills.

My wages go into my RBS account then I send it straight to her current account. I do this because my o/d is maxed and I'm scared they will take it away.

Get a new account and stop using this one.

Then x amount gets sent to our bills account (in her name) to cover all the outgoing.

That's fine

Should I open a new account and move all of the outgoings to it?

Just open one for wages and personal spending.

tigerfeet2006

Whynot66 wrote: »

If so what about her debt repayments?

They are hers and are not for your SoA. She will pay them from the money she has left over after her contribution to the joint household bills

Whynot66

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1850

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 27
Groceries etc. ......................... 400
Clothing................................ 25
Petrol/diesel........................... 75
Road tax................................ 12
Car Insurance........................... 99
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 18
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 10
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1897


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Overdrafts.....................3900......0.........0
Loans..........................10000.....0.........0
Credit cards ..................9100......0.........0
Pay day loan ..................630.......0.........0
Debt collector agency..........1700......0.........0
Store cards ...................3200......0.........0
Total unsecured debts..........28530.....0.........-


Monthly Budget Summary
Total monthly income.................... 1,850
Expenses (including HP & secured debts). 1,897
Available for debt repayments........... -47
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -47

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -28,530
Net Assets.............................. -27,730

elljay

Does your daughter live with you full time or what arrangement do you have for her?

Whynot66

elljay wrote: »

Does your daughter live with you full time or what arrangement do you have for her?

I have her 13 out of 28 nights. Her mum recieves tax credits etc. I pay £100 in maintenance every month.

We eventually managed these agreements without external arrangements.

A4445

I received BRU for 3.5 years discounted from 4.0 years for excepting. This was given to be for wreckless spending of around 20k in the year prior to bankruptcy. However I did have serious mental health issues. It's no big deal to get one, all it means is you can't apply for credit for the 3.5 years and it's ended being up being on my credit file 10months after the bankruptcy. It's only on my experian credit file. Equifax never reported it and Call credit removed it at the same time as the bankruptcy. I've had to have credit checks for 2 jobs and it's never been an issue.