Just a few questions please!!!

Helpmeoutofthismess

I'm afraid that now you have been declared bankrupt the only way out is an annulment but to do that, you would need to be in a position to pay all of your debts off in full.

The OR will ask you to provide details of your monthly rent/ bills so they can work out how much your IPA will be. They will leave you what you need to have a reasonable standard of living but the rest will need to be paid to the OR's collection agent for the next 3 years.

H

Hayleylk1812

In that case then because I named him as a creditor on my application will some of the money I have to pay for the 3 years go to him? I'm so so worried about all of this, I can't sleep, hence why I'm posting at this time in the morning

dojoman

Hayleylk1812 wrote: »

In that case then because I named him as a creditor on my application will some of the money I have to pay for the 3 years go to him? I'm so so worried about all of this, I can't sleep, hence why I'm posting at this time in the morning

No, as already stated, those loans are in his name and legally have nothing to do with you.

Kerry511

Hi Hayley

Firstly big hugs... calm down, it will be ok! But you will have to take control of the situation and fast! Read through everything on here and prepare yourself!

Why did you panic and file for bankruptcy? Something must have happened in order for you to feel like you had to do it?

You need to prepare yourself! Try popping up your statement of affairs including everything you spend on (not just your phone and rent) include hair, food shopping, holiday, clothing, travel, insurance, health prescritions, emergency fund £10, etc. Because anything you don't need will be taken for an IPA! But you will be left with enough money to live a reasonable standing of living. But you have to fill out a soa first (to show what you need and how much). You would have already done one of these on the bankruptcy form......... what did you put on that?

How much do you owe each creditor?
Total amount of debt!

May be easier for others to advise you if they have more info :-)

What lead to your debts? Overspending/gambling/change in circumstances?

I have not heard of this before. Others will give you good advise as already have! Hang in their as it can be quieter on weekends!

Just read read read and gather as much info as possible from this site!

Xxxx

Hayleylk1812

Hi,

Basically I applied because I felt after all the payments for my loans etc had gone out each month I didn't have enough that I wanted to live on each month. It sounds a bit silly but when I was a child I go everything I ever wanted, anything at all I wanted I only had to ask and I'd get it, very spoilt! But when I turned 18 my parents took a step back and I had to start being responsible for my own money, that's when the problems started! I still wanted to have everything but obviously I couldn't really afford it as I don't make mega money, so then along came the loans and then another, and then another but I was happy because I had everything I wanted and could go here, there and everywhere and not have to worry about money, until 1 day when I was edging nearer the last few £100's of the loan I thought hang on, this money is going to run out soon, and then what? So that's when the panic kicked in!

I have 3 loans in my name, amount left remaining as below -

Tesco Bank - £7641
Halifax Bank - £4897
Lendable - £3377

My partner also took out 2 loans for me, 1 to pay off 2 Overdrafts I had and the time and another to consolidate credit cards

I have checked back on my BR application and the page for expenditure is just blank! I must have just put £0 for everything because I wasn't really thinking! I have done an SOA as below

Monthly Income Details[/b]
Monthly income after tax................ 1187.94
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1187.94

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 170
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 65.99
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 80
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 795.99


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
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,187.94
Expenses (including HP & secured debts). 795.99
Available for debt repayments........... 391.95
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 391.95

Thank you for your help! xxxx

Flyright

The OR will be seeking an IPA from you, as previously advised your partner's debts are legally his own, irrespective of whether he obtained the loans to pay towards your debts. Your partner will have to service those debts himself now as the OR will not allow you to pay your income to your partner's debts as all surplus income in bankruptcy is claimed in an IPA.

TheGardener

Ok - it sounds like you've got yourself in a bit of a pickle and this is your opportunity to really take control and get organised.
Not taking independent advice on your debt may be a reason to get the BR stopped but you are going to have to move fast and discuss with the OR as soon as possible.
failing that

If the BR cant be stopped the priority is to minimise the IPA amount: That gives you the maximum amount to 'juggle' with each month. Legally you are not allowed to pay your BF's debts but how you manage your money once the IPA is set is up to you.
Rent - way too low - your parents should be charging you a minimum or £400per mth to cover your board and lodgings so change that. Do you buy your own food on top of that?
How long are you tied to the (very expensive :eek:) mobile phone? If this is a fixed price you are tied to then the OR should allow it. However, as soon as you can you need to reduce that to a cheap sim only deal.
£100 a mth for clothes is way more than the OR will allow you - try putting in £50 but expect it to be reduced a bit more. Add something for dry cleaning for work clothes.
Travel: assuming public transport - do you have a season ticket etc? Make sure you properly cover all your transport costs.
You probably wont be allowed entertainment but you are allowed a small amount for a holiday and the emergency fund it fine.

If you can get the BR stopped - you still have to find a way to get out of the debts and to manage your money better. If the BF cant afford the debts - then you both need to work out if he needs a debt management plan
If you cant stop the BR - things are going to be tough for a couple of years but you will come out of it stronger.

Flyright

Let's be realistic here, there is little chance of getting this bankruptcy cancelled, particularly as it was on the OP's own petition. At best maybe the OR will have a conversation about an IVA but anything at this point is going to be expensive and the OP will still not be allowed to make any payments towards her partner's debts.

TheGardener

Flyright wrote: »

Let's be realistic here, there is little chance of getting this bankruptcy cancelled.

Probably not - but the OP wont know if they don't ask and the worst they can say is no...

OP - speak to the OR as soon as you can and tell them you didn't take any advice and may have made a mistake. You should have explored other options like a DRO.

As you didn't take any advice - is your job anything to do with finance, banking or the Police? I'm asking as some professions will not accept BR's.

Hayleylk1812

Thank you so much for your help, it's been really useful.

I have sat down and really thought about my outgoings and I have done a revised SOA as below -

Monthly Income Details
Monthly income after tax................ 1187.94
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1187.94

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 65.99
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 40
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 115
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, Christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 20
Dry Cleaning for Work Clothes........... 30
Total monthly expenses.................. 1020.99

Monthly Budget Summary
Total monthly income.................... 1,187.94
Expenses (including HP & secured debts). 1,020.99
Available for debt repayments........... 166.95

Do things look better now?

With regards to my phone contract, yes I'm tied into a contract for 2 years. It's ridiculously expensive I know but it was a case of the phone had just come out and I needed to have it and didn't want to wait for the contract prices to go cheaper!

If the OF accepts my SOA as it is above will they be checking on my bank account to see how I'm spending my money?

The OF sent me an email on Friday at 14.57PM attaching a copy of my interview letter which is set for Tuesday, I didn't see the email until I came out of work at 5PM but then replied to advise I may not have made the right decision and haven't received debt advise etc

One last thing, am I allowed to use any of the money I have in my bank account at the minute? Another thing that's an example of me not looking into Bankruptcy before I went and did it!

Thanks again