Nearly Ready For The "SUBMIT" Button

debt_doctor

Hi,


I have looked at your SOA as 2 adults and 4 children as 2 of the children stay half the week each.


I notice that you have a negative SOA (more going out than coming in) - This is fine but you need to explain how your budget will balance in practice.


My suggestion is that you will say that your budget will balance by reducing your smoking costs from £400 per month to £50. You are way over on your overall Food and housekeeping category, but knocking down the smoking will put you somewhere near.


Other categories I feel happy with.


Providing you are allowed to keep your car then the spend looks reasonable - hard to see why you couldn't prove a need for a car with that mileage! The value of your car if over £1k will raise an eyebrow but I think considering the mileage involved a slightly better car should be allowed and you should successfully argue that.


I have checked the technical manual and the child support and spousal maintenance are allowable expenses (don't see much spousal maintenance on the forum).


That is my view.
DD

VeryInTheRed

Hi DD,

Many thanks for looking over it all!

The app m is for us both to drastically cut down and stop smoking asap and I will happily explain that to the OR as our intention to help us balance the books.

Your input has made me feel much better about pressing the button.

I will post an update to all once I submit and then again after my interview.

One other question:

On my application I have stated that £20,000 of the debts are from gambling. This was a brief spell and I do not have a gambling problem. I have not gambled for over a year and do not have any desire to gamble. I did it to try and get out of the hole using tactical gambling, but didn't follow the rules and got carried away chasing losses.

Will that level of gambling as a proportion of the total debt (1/3) likely result in a longer bankruptcy term?

Thank you again for your time ����

debt_doctor

Reducing smoking is the explanation that they will prefer -but ultimately its either less cigs and more food or vice versa.


Regarding your gambling, it is a significant portion of the debt. It may well be that a BRU/O could be the outcome (I do hear what you say about the gambling reasons but it comes under rash or speculative behaviour)
You do need to understand a very important distinction in that a BRU/O DOES NOT extend your bankruptcy term - it continues the main bankruptcy restrictions (not borrowing £500 without disclosure, cant be trustee / Director).
So discharge still takes place after a year, so any new assets or increase in income (providing you don't have a current IPA) do not need to be reported even with a BRU/O after discharge.
DD

VeryInTheRed

Thought that may be the case. In fairness it was reckless/stupid behaviour!

At least a BRO/U isn't as scary as I thought. Not likely to be a director in the near future and borrowing is not something I want to do again : )

VeryInTheRed

Hi all,

Application submitted last night.

Emai today asking me to sign into my online portal.

Approved!

I am now officially bankrupt : /

Official Reciever interview pending...

Will update further after that!

Thank you to all for the help, support and guidance!

VITR.

Butts

VeryInTheRed wrote: »

Hi all,

Application submitted last night.

Emai today asking me to sign into my online portal.

Approved!

I am now officially bankrupt : /

Official Reciever interview pending...

Will update further after that!

Thank you to all for the help, support and guidance!

VITR.

Congratulations....good luck with you interview. Try not to get to much smoke in your eyes (or your budget !!)

gman1980

debt_doctor wrote: »

Reducing smoking is the explanation that they will prefer -but ultimately its either less cigs and more food or vice versa.


Regarding your gambling, it is a significant portion of the debt. It may well be that a BRU/O could be the outcome (I do hear what you say about the gambling reasons but it comes under rash or speculative behaviour)
You do need to understand a very important distinction in that a BRU/O DOES NOT extend your bankruptcy term - it continues the main bankruptcy restrictions (not borrowing £500 without disclosure, cant be trustee / Director).
So discharge still takes place after a year, so any new assets or increase in income (providing you don't have a current IPA) do not need to be reported even with a BRU/O after discharge.
DD

Hi DD, please can you reconfirm your above statement regarding "no need to disclose increase in income" during the BRO/U period?
I had posted an hypotheitical question to businessbebts online. the question was - Suppose you are discharged from BR after a year but slapped with a BRU for 3 years. in that 3 year period, you join a company and become a share holder of the company. you get dividend income as a share holder. Do you need to tell this to the OR during BRU period? the answer I got from the advisor from the businessdebt team was - you will still have the same BR restrictions therefore you need to tell about this income.

xcrystal2003x

Sorry it won't let me post the link but I've been on the national debtline website as I needed to check my own budget and found a few pages with suggested amounts for a personal budget

Don't know if this is any help to you or anyone else in this situation you've maybe seen it but just thought it might give you or anyone else a few pointers. Please note it goes on for a few pages!!

debt_doctor

gman1980 wrote: »

Hi DD, please can you reconfirm your above statement regarding "no need to disclose increase in income" during the BRO/U period?
I had posted an hypotheitical question to businessbebts online. the question was - Suppose you are discharged from BR after a year but slapped with a BRU for 3 years. in that 3 year period, you join a company and become a share holder of the company. you get dividend income as a share holder. Do you need to tell this to the OR during BRU period? the answer I got from the advisor from the businessdebt team was - you will still have the same BR restrictions therefore you need to tell about this income.

Hi,
They gave you an incorrect answer. A BRO/U ONLY continues the requirement to abide by the behavioural restrictions of bankruptcy - NOT by any requirement to inform of new assets or income, providing (as said earlier) you are not already in an IPA.
I find it interesting that this adviser never pointed out to you that getting a dividend as a share holder could be a criminal offence if you are involved in the formation, promotion, management or directorship of the Company!


Debt Camel says this here.....


https://debtcamel.co.uk/discharged-from-bankruptcy/


DD

gman1980

Hi DD, from what I gathered, its not a criminal offence to be a shareholder/get dividend - even during the bankruptcy period.if this is happening during the 12 month period, then just need to tell the OR about this as shareholding is considered as asset. It wont construe as involved in promotion / management of the company ( you can just be an employee and still be a shareholder rather than a company secretary)

My question was specifically about BRO/BRU . Should we declare that shareholding /dividend income during BRO?

its just a vague statement when they say " same restrictions apply as of during the bankruptcy period" does this mean that telling OR about the income?