Bankruptcy possible rejection- Help

-taff

You should also go to the debt free wannabe board for cutting down your spending.
You can ditch the sky, get a cheaper mobile and you don't have contents insurance either.
Why have you got dependant adults?

Kerry511

Are you both declaring bankruptcy?

If you are at present you will not be given an IPA as you have no income but your husband most likely will given he has surplus! I feel some of the expenditure will be questioned (phone/broadband/tv-£170, childcare when you have no need as your at home, entertainment £50) these figures are high and the OR will most likely want explanations!
During the bankruptcy period if you start employment then you will also most likely be given an IPA as the expenditure will be evened out between you both!
Unless you remain unemployed until discharge!
Even after discharge if you find employment then your husbands IPA will be increased as you will then be paying towards the expenditure (leaving him with more surplus) ...... hope that makes sense.

I would look at the expenditure and get a file together explaining each debt (easier to explain to OR) then the file is to hand when you need it!

I have a feeling you already know you have been "spending beyond means" so no judgement this end! We all end up in some kind of bother every now and then! The main thing is you have started to take the steps to sort the debt out and hopefully have some breathing space! Please learn from mistakes by sorting your expenditure out and living with "what you can afford" life is so much easier that way. Stay clear of the cycle so there is no reaccurnece......
You will need to learn to budget better as the next year (start of bankruptcy) will be tough financially but worth it in the end!

Other will be along to give better advice. I have only recently gone BR myself, so no where near an expert (just advice I have gained through my own BR) plus didn't want to read and run :-)

I hope it all goes well for you!
Goodluck and come back if you need more advice! The people on here are lovely :-)

tigerfeet2006

Anamika1 wrote: »

Thank you DD for your advise.
I have prepared a SOA. Please note the child benift is also in my husbands name ( in short I have no income at all). When the OR goes through the SOA, I read somewhere where they said that they will look into the joint holdhold income and it will be split proportionately between the partners to see if something available for IPA. In my case, the whole earnings is from my husband ( he has his own debts as well which is not included here). I am sure how this will be done?
Any help with the SOA will be really appreciated.
Once agin, you guys are amazing!

Okay I am assuming that it is just you that is going BR and not your husband.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 3600
Benefits................................ 137
Other income............................ 0
Total monthly income.................... 3737
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 375 Is this your HP or your husbands?
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 70 Is this your phone? 2 phones for both of you?
TV Licence.............................. 13
Satellite/Cable TV...................... 70
Internet Services....................... 30
Groceries etc. ......................... 525
Clothing................................ 50 family of 4 £90ish
Petrol/diesel........................... 200 your vehicle?
Road tax................................ 5
Car Insurance........................... 85
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 80 is this because you were working before and don't want to lose the place? any other reason?
Other child related expenses............ 50 what does this cover?
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0 any pets?
Buildings insurance..................... 0
Contents insurance...................... 0 you should get this.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 £20/30
Haircuts................................ 20 £10 per adult £5 per child
Entertainment........................... 50
Holiday................................. 0 £70
Emergency fund.......................... 50 £40
Financialy dependent parents............ 450 Please can you explain this.
Total monthly expenses.................. 2933

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 20000....(375)......0
Total secured & HP debts...... 20000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Bank....................12500.....300.1.....0
Barclays Loan..................33500.....797.......0
Credit card....................8700......200.......0
Total unsecured debts..........54700.....1297.1....-

Monthly Budget Summary
Total monthly income.................... 3,737
Expenses (including HP & secured debts). 2,933
Available for debt repayments........... 804
Monthly UNsecured debt repayments....... 1,297.1
Amount short for making debt repayments. -493.1
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -20,000
Total Unsecured debt.................... -54,700
Net Assets.............................. -74,700

My comments in red.

Placitasgirl

A couple of comments.... Your grocery bill for 2 adults and a couple of toddlers is definitely on the high side, you could certainly make significant savings here. Nip across to the debt free wannabe board for some pointers and tips.

You say you don't own a car, but there are car related costs in your SOA - can you explain this?

What do you mean by "financially dependent parents" - do you owe them money and is this a repayment?

sourcrates

How on earth did you get an unsecured loan for £35,000 with no income ?

Ashingtonian

sourcrates wrote: »

How on earth did you get an unsecured loan for £35,000 with no income ?

Perhaps he is self employed and it was some kind of business loan?