SOA - BR my best option?

Ihatemydebts

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1406.96
Other income............................ 169
Total monthly income.................... 1575.96

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 459.29
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 17.4
Mobile phone............................ 20
TV Licence.............................. 24.25
Satellite/Cable TV...................... 26.6
Internet Services....................... 10
Groceries etc. ......................... 450
Clothing................................ 84
Petrol/diesel........................... 120
Road tax................................ 24.93
Car Insurance........................... 69.03
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 8.79
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 25
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1574.29


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...APR
Hmrc...........................8650.81...0.........0
Sainsburys.....................18557.3...0.........0
Very...........................4950.5....0.........0
Loan in Mum's name.............2532.46...0.........0
Mum............................2800......0.........0
eBay...........................450.......0.........0
Ideal World....................412.04....0.........0
Tsb............................1500......0.........0
Next...........................581.03....0.........0
Endsleigh......................161.91....0.........0
V12............................362.36....0.........0
College Course.................300.8.....0.........0
Barclays.......................668.54....0.........0
Barclays.......................535.1.....0.........0
Isme...........................1744.61...0.........0
Total unsecured debts..........44207.46..0.........-


Monthly Budget Summary
Total monthly income.................... 1,575.96
Expenses (including HP & secured debts). 1,574.29
Available for debt repayments........... 1.67
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1.67

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -44,207.46
Net Assets.............................. -43,007.46



Now I know that the debt to my mum and the loan in her name won't be covered Also, I do sometimes get an additional £150 pm maintenance payment, it's not every month and he owes me hundreds that I'll never see. How will that be dealt with?

So embarrassing that I'm in this state, always worked and managed my debts but due to awful events over the past couple of years I now find myself in this horrible position. I'm so angry with myself.

Ihatemydebts

Also, one car is for sale, hopefully that will go asap.

Bouncybubbles

Have you looked at stepchange or national debtline for potential options? Bankruptcy is normally a last resort however they will be able to advise you further

Ihatemydebts

Thanks, I'm going to ring them tomorrow. This is the first time I've actually wrote everything down and it's much worse than I'd expected!

TheGardener

Try the Stepchange website - they have a debt remedy tool that you can put all that info into and it will suggest what it thinks your options are - its a good starter before you call them.
Actually getting it all down on paper and starting the search for solutions is actually the biggest step so well done you!!!

Ihatemydebts

The debt remedy tool suggests BR, I don't have any significant surplus so I doubt an IVA would be considered.

mwarby

Given your renting and have debts above DRO limit and no disposable income bankruptcy is pretty much only option

With so as is bankruptcy would seem only option

DMP - at £1 a month ?
IVA - same maybe plus PPI, butfew IPs would take on
DRO. - at £44k debts too large

Re your soa
Entertainment and Satellite maybe difficult
Emergency fund I doubt you'd get £50 for this, although I think you get £10 thus
TV licence is about £15 I think

So you might find whatever solution you are asked to contribute your surplus which with above would be £50 - £100 a month

I'm not sure about car, but it's a significant portion of expenditure and if not needing it for work, you maybe challenged as to why you need it (as not having it might save £200 a month, which would again count as surplus and add to £150 above)

mwarby

Re the child maintenance, I can imagine 3 ways if dealing with it

It's added as income and you have to get an exception from OR when it's not paid

It's not counted as income but you gave to tell OR when you get it

The OR sues backdated maintenance, which is then an asset

I would imagine that initially it'll be not counted, but kept under review and you'll be told to pay it over as and when you get it

Hopefully someone else can give you a more definitive answer

Ihatemydebts

DMP isn't practical really, I was due to return to uni this October but have decided to take a year out for various reasons, it'll be at least 2/3 years until I'm able to get even a £20K plus salary so there's no way of paying debts off in the foreseeable future.

TV licence is currently £24.25 as I've only recently needed one and the full cost is split over 6 months. I could ring the OR when it reduces though?

Tied into a contract with sky unfortunately. Would that just be cancelled and added onto my debts?

I'll reduce the entertainment and emergency fund, thanks. I hadn't put anything down for presents, any suggestions as to what amount? Also, am I like,y to be allowed anything for 'holidays'?

fatbelly

Get your car valued on Parkers (private poor) - it would be helpful if the valuation is less than £1000 but it may have to be accounted for.

Sorry, is that 2 cars?

Ihatemydebts

Re the car, the children's school is over an hour's round trip if walking, would they really make me sell my car? I suppose we could use public transport but wow - what a killer Not that I'm moaning, it's my own fault I'm in this situation!