my situition

dan405

Hello. I'm just going to talk about my situition as I feel it's time to face up and get my head out off the sand and try get a fresh start.

My current debt is 24.3k personal loans and a few other things. I know my only option is to file for bankruptcy.

I stopped paying my creditors about 4 months ago the day after I was evicted from my council house. This was to try get myself sorted.

I have been homeless. Sofa surfing and also living in a caravan. Anyway I'm off no fixed abode but do have a care off address

I do work and am contracted to 16 hours minimum but regularly work more than this my take home pay is usually £800.

How do I work out my living expenses I pay £160 maintenance for my 2 children monthly. And apart from feeding and clothing myself I have around 400 left.

I have the money to file for bankruptcy. But I'm unsure off what will happen

I have a car with a blue book value of £800 I also use this to sleep in sometimes but I have no other assets apart from clothes and picures of my kids

My take home pay is as I'm contracted to 16 hours is £511 but I work more sometimes and this take it up to 800 - 900

These are my outgoings

Child mantinance £160 per month for 2 kids 2 different women
Clothes per month about £30
Food per month about £70
Car fuel tax and insurance £90
Mobile top up £15 per month
Smoking £35 per month

Which as per my contracted hours leaves me with £111 left over or if I work more hours roughly 400 per month

I don't want to be homeless anymore and need a place for my kids so how with bankruptcy work regards to my pay.

My car is worth £800 as per blue book but I use it to sleep in and ferry kids to school and use it to get to work. Will they take this hopefully they dont as it's really needed

I have no other assets so this is the only option

I do have the fees set aside for my bankruptcy

What can I do

What can they do to me if I go bankrupt?

Thanks

DaniEl

BTW I'm going to a cab meeting next week for more advice

sourcrates

Hi,


How are you doin ?

With regards to your income, is that £800 per month yes ?

I think you need the majority of that £800 to live on my friend, i think you are been far too gracious here, you will be fine with your car, as its worth less than £1000, you should be able to keep it, you have not factored in money for fuel, car tax, insurance, or maintenance, so you have more expenses than you think you have.

You ask what will happen, what can my creditors do ?

Well your creditors do not have much say in the matter, you fill in the forms online, make the payment, that is it basically, the OR will declare you bankrupt.

You will need to open a new basic bank account, as your old one will be frozen, you will have a telephone interview with the OR, they will go through the application, takes about an hour, thats it.

Please make sure you budget correctly, as i said before, you will not have much change out of that £800, if you have more than £20 disposable income, then you may get an income payment arrangement (IPA) for up to 3 years.


Go to your CAB meeting first, see what they advise you to do, i would of thought somewhere to live to be a higher priority just now.

C_Mababejive

Dont worry about it. File for bankruptcy and get the process rolling.

Its the modern way.

I know people who were desperate and broken,went bankrupt and a year or two later it was as if it had never happened. Life rebuilt, new job, new home ,all good,,

dan405

Hi sourcrate I am fine thanks for your reply! How are you.

As I'm contracted to 16 hours a week my take home pay is normally £511 but I do normally do more hours and some months get 800 per month but not always so let's say the end off this month I get £511 then the month after I get 800 cause more hours worked.

So my outgoingsituition are

£160 child maintenance
£30 for clothes
£70 per month on food
£65 per month on car insurance
£10 per month on car tax
£35 per month on fuel
£35 per month smoking
£15 per month pay as you go top ups
£25 per month on my 5 year olds dinner money
£10 per month for swimiming I use this to have a shower and what not
That is it.

But I am homeless and have no where to live anymore and can't afford to find somewhere atm I want to try and find somewhere for the kids to stay with me

Will they factor this in.

I'm basically living in my car and friends sofas.

Life is very hard I know it's due to my own fault. But if it wasn't for my kids I think I would off killed myself to be fair. But even with all my debts and problems they kids keep me going.

Dan

dan405

Just to add I have 1 last payment on my car before its paid off and becomes my car. That happens in 2 days

Willing2Learn

Hi Dan,

Sorry to read about your current situation.

With regard to your housing, a number of Local Authorities operate a Rent Deposit Guarantee Scheme (or something with a similar name). These type of schemes are run as part of a 5 year plan to reduce homelessness which every Local Authority has a duty to have.

You may be eligible for one of these schemes. You don't need to be in priority need. You could approach the Local Authority where you have a local connection. (Local connection is defined as the Borough in which you have lived in over the last five years, or where you work or where your children live). It may be that you have a local connection to more than one Local Authority, in which case I would suggest you might want to try approaching them all as that would increase your chances of finding a Local Authority that operates such a scheme.

Good luck!!

dan405

I have been looking at rooms to rent which would be 300 per month I think for now this may be the way go.

PaulL2

I know it's only a small thing but have you read Easyway to stop smoking by Allen Carr? It's usually about £6.99 and as I quit a 10 year smoking habit 5 years ago with no withdrawal symptoms, it's the best 7 quid I've ever spent! Sure it doesn't work for everyone but it has re-trained my mind and since you're making great attempts at sorting out the other areas of your life, why not go the whole hog? The official receiver is unlikely to allow you money for smoking..

Definitely get looking for rooms- you can usually find rooms to rent privately with perfectly nice people (and no evil agencies), no bills on top and no contract. You'd probably need a month's deposit. Try spareroom, Gumtree etc.

sourcrates

Dan,



You are going to have to get specific advice on your particular situation, if your car is worth more than £1000 it would have to be sold normally, i do not know how the OR would view this in your case.


Also smoking is not a legitimate expense under bankruptcy.


I think a roof over your head is the priority at present, the debts can wait to be honest.

Craig1981

you need to add to your expenses:
optical/dental
Car maintenance
parking
haircuts
clothes

CAB will help you with a proper I&E when you see them.

approach the council - a lot of councils have properties on the open register they find too difficult to rent out... if not able to help, house share as you said is a start. this will no doubt also push up your expenditure from where it currently stands, but at least a roof over your head with heat and running water!

good luck sir

debt_doctor

Hello Dan,

Your debts are not that important right now, getting re housed is your main priority.
I fully agree that your £800 should be yours to keep, but if you submit an SOA like that, the OR will take your surplus for 3 years of monthly payments. I suggest you increase your food / housekeeping to £300pm and put something in for lesuire (about £100pm).

You will need to prove a NEED for your car (work, caring etc) whatever its value, but if you prove a need then a car under £1k is fine. I also note that you sleep in your car sometimes.

I really think that dealing with your debts can wait - what are they going to do? You have little income, no assets, and they don't know where you are.

There has been some good info about re housing - is your BR fee better spent on a down payment for renting a room?

Good luck.

DD