off sick..about to go bankrupt

nearlyrich

This petty backbiting is not helping the OP at all please don't derail this thread. If you have an issue with another poster's post then just hit the report button.

Cobalt77

nearlyrich wrote: »

This petty backbiting is not helping the OP at all please don't derail this thread. If you have an issue with another poster's post then just hit the report button.

Thanks for the advice nearlyrich. The Admins have been super efficient at removing all the "troll" posts from this thread, and are now monitoring the accounts of those who made them

Hopefully, "normal service" will now resume

pathtofreedom

Are you claiming all the benefits you're entitled too? If your ssp has run out you might be able to claim esa and or pip but it is worth trying some benefit calculators as some of them take partners income into account if you're living together.

http://www.entitledto.co.uk/

fraggle45

I had a bit of trouble with my partners income and my bankruptcy. We have a 50-50 agreement on bills. In my interview I indicated a roundabout figure I thought my partner earned and the OR tried to say that he should be contributing more because he earns a lot. This would have meant that I would be on an IPA. I had some good advice on here and did some of my own reading and stuck to my guns because I couldn't make my partner pay more and neither could they. So if you do go bankrupt probably best not to tell them your partners full salary and stick to the contribution you stated

tigerfeet2006

sherr wrote: »

Hi, I'm hoping for some advice.
I am currently off sick and have been on and off for a year with postnatal depression/anxiety. I was on full pay for 6 months, then half pay, and as of next month, no pay. I'm still employed with them and am hoping to get back at some point on reduced duties and hours.
I have a credit card and unsecured personal loan which amount to £15,795. I haven't missed a payment so far but have REALLY struggled the last few months and realised I'm not going to get any better unless I sort this out. I have had advice from stepchange and have a bankruptcy appointment the beggining of march and am currently going through my soa.
I'm unsure what to put as my income? The end of this month I will be paid around £500 (I hope!) as I have asked for my annual leave to be paid to me but last month I only got £250.
I rent, have 4 children (one still in nappies) and a dog. I'm hoping I get to keep the car as my 3 older children go to seperate schools.
This is the rough copy SOA using the half pay income




Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 570
Partners household contribution....... 728
Benefits................................ 707
Other income............................ 200 (maintanence from ex)
Total monthly income.................... 2205
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 586
Management charge (leasehold property).. 0
Council tax............................. 149
Electricity............................. 70
Gas..................................... 70
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 33
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 600 £700
Clothing................................ 63 £120
Petrol/diesel........................... 50 this will go up when you start work again
Road tax................................ 20
Car Insurance........................... 55
Car maintenance (including MOT)......... 15 £30
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 50 £5 per child per week for activities £2 per child per day for school dinners.
Medical (prescriptions, dentist etc).... 15 £20
Pet insurance/vet bills................. 23
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30 £40
Entertainment........................... 0
Holiday................................. 0 £100
Emergency fund.......................... 10 £60
Total monthly expenses.................. 1959


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...AP
credit card....................2800......84........
personal loan .................12795.....324.......
Total unsecured debts..........15595.....408.......
Monthly Budget Summary
Total monthly income.................... 2,205
Expenses (including HP & secured debts). 1,959
Available for debt repayments........... 246
Monthly UNsecured debt repayments....... 408
Amount short for making debt repayments. -162
Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,595
Net Assets.............................. -14,395

Some things you hadn't tought about.

Also childcare when you go back to work and extra petrol. So that will change your SoA when you are earning.

sherr

Thank you tigerfeet that's really helpful. I have had advice that I can't get a DRO as my car is over £1000 and I have over £50 surplus so bankruptcy it is.
How does the OR check your income? If I go back on reduced hours I will be bringing in £456pcm based on my hourly rate and hours. Or will they use my last wage slip, or an average of the last 2 wage slips?

dancingfairy

If you make the corrections suggested to your soa then you won't have more than 50 surplus though .
Not sure on the car, someone more knowledgeable can help you with that.
Seriously if you qualify a dro is much better than bankruptcy, not least because of the cheaper fees and shorter period involved.
Df

dancingfairy

I'm not sure about the exact value for the car whether the 1000 is a hard limit or just a guide? I believe in bankrupt y it is more a guideline but it is down to your circumstances and your or so perhaps a dro is similar?
Also how have you come up with the value of your car? Its not exactly a million miles avive the 1000 so are you sure it's not worth only 1000? I'm not for one minute suggesting lying but parker's or auto trader etc might give slightly different valuations so you might find you can print out the auto trader valuation or something to prove its value?
Df

Cobalt77

This is exactly what I've repeatedly said, dancingfairy.

It should be pretty easy to get your disposable income < £50 pm if you are returning to work on a part-time basis - after all, it probably means just doing a day or two less per month and will save her about £600 in BR fees plus over £7,000 in IPA payments (£200 pm for 3 years)

Regarding the car, they tend to value the car at "trade" rates i.e. what you would reasonably receive if you sold the car directly to a second hand car dealer for cash.

This is usually quite a bit lower than the "market value" quoted in car price guides. Also, the value of any car can vary quite a bit depending on the state it's in. The market is currently overloaded with second hand cars and you have a lot of choice in the under £1,000 price range, so sherr really should seriously be 100% certain the value is well over £1,000 before discounting the DRO route.

If it was me, I'd even sell a £1,200 car and buy an £900 one if it meant I could potentially save £7,000 plus over the next 3 years. Heck, I'd walk!

sherr

I paid £2,200 for it at a car auction less than a year ago, auto trader is giving a range of prices Between £1,200-£2,000 and the lowest price on parkers is 1,200. Where do they get their estimates from when considering a DRO?