Was thinking Bankruptcy but wondered about DRO - SOA included

MM1975

Hi there,

I've been posting on the bankruptcy boards but it's been suggested that I post my SOA over here as well as DRO might be an option. I don't have any assets or interest in properties. My pension is paid into monthly but is worth less than £2000.

Here's my SOA mostly based on calculations I did over the last few days speaking to StepChange. They calculated originally that I had £170 left over - they wouldn't include the entertainment and gifts category and I'd forgotten about the medical expenses. Their suggestion was bankruptcy.

Any thoughts/suggestions/insight?

Thanks!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1937
Partners monthly income after tax....... 0
Benefits................................ 607
Other income............................ 389
Total monthly income.................... 2933

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1566
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 49
Gas..................................... 57
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 13
Satellite/Cable TV...................... 7
Internet Services....................... 22
Groceries etc. ......................... 375
Clothing................................ 46
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 215
Other child related expenses............ 89
Medical (prescriptions, dentist etc).... 27
Pet insurance/vet bills................. 7
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 34
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 86
Pocket Money............................ 4
Total monthly expenses.................. 2934


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclaycard....................865.......0........ .0
Council Tax w/Confero..........1999......0.........0
Drafty.........................1165......0........ .0
EON............................1200......0........ .0
Behind on Council Tax..........842.......0.........0
Lawyers/CCJ....................6800......0.........0
Wonga..........................645.......0........ .0
Thames Water...................227.......0.........0
HSBC...........................250.......0........ .0
HB Overpayment.................2400......0.........0
Tax Credit Overpaymen..........2437......0.........0
First Direct...................500.......0.........0
Total unsecured debts..........19330.....0.........-


Monthly Budget Summary
Total monthly income.................... 2,933
Expenses (including HP & secured debts). 2,934
Available for debt repayments........... -1
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -1

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,330
Net Assets.............................. -19,330

Former_E.ON_Company_Representative:_Malc

Hello MM1975

I've just posted some information on your other thread that might be helpful. It's at the link below.

https://forums.moneysavingexpert.com/discussion/comment/71518424#Comment_71518424

Hope it helps.

Malc

mwarby

£86 for gym, that's quite a lots ESP with likes of our gym doing it under £30. I suspect the OR would see this as a luxury, although may depend on OR and budget overall

MM1975

I should have said - gym is high because it's for me and my daughter and includes childcare. I'm a single parent so with childcare is the only way I can do it and the gym was recommended by my GP and therapist as a way to deal with my depression and anxiety.

wba31

You said StepChange gave you a surplus of £170 but your SOA doesnt have this surplus? why are they different?

Is part of your income DLA/PIP? If so the gym cost can come out of this. If you do not receive DLA/PIP i struggle to see that this would be an allowable expense

sourcrates

Hi,

I've seen all your posts on various forums, basically to qualify for a DRO, you must have less than £50 left at month end.

As Fatbelly advised previously, if you can find an intermediary to put your budget through a DRO then go for it, see how it unfolds.

If that fails, it's Bankrupcy.

adyj73

65 a month for mobile also won't be allowed methinks..??

mwarby

I'm not sure how the I and e works in a DRO, do you just have to convince your debt advisor, or the actual insolvency service ? If the former at least you gave some certainty before point of no return

DorisTrousers

The I&E in a DRO has to go past an Approved Intermediary first. The AI (and I am one) is not there to tell people what to spend their money on, but will point out areas of expenditure that may be able to be trimmed.

We have "trigger" figures in relation to expenditure to work with, so if an area of expenditure is higher than the trigger figure then we would need to provide an explanation as to why that is so to the Insolvency Service. Alternatively, we also have the discretion to add in any extra costs into the area of expenditure described as "other". "Other" can cover areas like Gym, Cable, Smoking, Lottery, Pub/Social etc.

At first glance, your budget looks fine to me and I cannot think of one good reason why you should fork out £680 for BR when you can pay £90 for a DRO but the devil is in the detail. If you have an overpayment of tax credits then that is covered by a DRO. If there is a deduction from your benefits already then that would have to stop, and your income would go up as a result. You have to factor in whether, if that is the case, that would tip you over the affordability threshold.

Speak to an intermediary first, they will not charge you for an assessment and it could save you a small fortune. I recommend CAB, but there are others.