bankcrupcy

debt_doctor

So, in that case, if you are the only person going bankrupt, as YOU have no earned income, There will not be an IPA to collect any surplus income.

An IPA MUST come from the bankrupts earned or pension income - the fact that you and your partner will be in receipt of benefits doesn't matter.

DD

System

hi ye sorry it will be in joint names as are few of are loans are joint names

debt_doctor

You need to think this through, and also need to get advice from a charity like Citizens Advice or other.

IF you decide to give up your home, then it would make sense to stop paying the mortgage and save that money for a bond / deposit / moving costs. It takes a long time for a property to be repossessed after non payment.

Once in your new home you could both become formally insolvent.

I don't know how much debt you both owe?

I wonder if one or both of you could do a DRO (once the house was gone) - do either of you owe less than £20 000?

One of the DRO criteria is surplus income of no more than £50 pm - but this is with all of your reasonable allowances taken in to account.

Lets see what your SOA says.

DD

System

hi we owe 47 total about 22 me 24 wife
when i spoke to payplan they whent through the budget and 270 was surplus
a just dnt know how to approach this iva or bankcrupcy
do we rent a house before we file for bankcrupscy with ours debts
would it be hard to rent a house when have morgage and debtsl
bond depsoit wont be issue as my parents will be paying like
just confused with it all i jave never missed a payment in my life of any kind

debt_doctor

As you have never missed a payment I assume that you have a good credit rating, so...

In order...

Put up your SOA on here for us to assess IPA.

Get somewhere to live. (with good credit rating)
Stop paying mortgage and all other debts.
Go bankrupt (definitely not IVA).



DD

System

thank you dd

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 264
Partners monthly income after tax....... 1385
Benefits................................ 540
Other income............................ 232
Total monthly income.................... 2421

Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 460
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 118
Electricity............................. 50
Gas..................................... 60
Oil..................................... 0
Water rates............................. 55
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 10
Internet Services....................... 30
Groceries etc. ......................... 450
Clothing................................ 100
Petrol/diesel........................... 150
Road tax................................ 14
Car Insurance........................... 80
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 20
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
repairs ( my son damages alot).......... 50
Total monthly expenses.................. 2829


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...................... 141000...(800)......0
Hire Purchase (HP) debt ...... 16000....(460)......0
Total secured & HP debts...... 157000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................22000.....272.......3.1
store cards....................6000......130.......0
loan...........................17000.....260.......9
overdraft......................3000......110.......0
Total unsecured debts..........48000.....772.......-


Monthly Budget Summary
Total monthly income.................... 2,421
Expenses (including HP & secured debts). 2,829
Available for debt repayments........... -408
Monthly UNsecured debt repayments....... 772
Amount short for making debt repayments. -1,180

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -157,000
Total Unsecured debt.................... -48,000
Net Assets.............................. -205,000


this is now and id like to rent of the same value if possible as the area is esstial for us to live in
i do have car on pcp and very costley if i vt it i wud owe 16k asumming this would become unsecured
but we need a car its a 100% essential

also if renting i fink we would a bit more benefits not 100% sure but going of the online sites inwould a need to ring to double check

debt_doctor

Hi,

How much do you think a reasonable rented property will cost you in your area?

DD

System

hi mate err 550 but i want somewere round 800 mark in gd area behonest thats essential for us like and detached behonest cos ma son is so loud n that all day and night like

System

hi if i was to rent and sell the house amd be able pay few debts off
luk like this

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.................... 1

Monthly Income Details
Monthly income after tax................ 1385
Partners monthly income after tax....... 286
Benefits................................ 792
Other income............................ 400
Total monthly income.................... 2863

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 118
Electricity............................. 70
Gas..................................... 50
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 55
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 25
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 130
Road tax................................ 12
Car Insurance........................... 85
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 50
Entertainment........................... 30
Holiday................................. 50
Emergency fund.......................... 50
mum owe her 13000....................... 100
Total monthly expenses.................. 2577


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................19000.....270.......0
loan...........................8000......250.......0
creation.......................2000......85........0
overdraft......................3000......100.......0
volkswagon.....................10000.....450.......0
Total unsecured debts..........42000.....1155......-


Monthly Budget Summary
Total monthly income.................... 2,863
Expenses (including HP & secured debts). 2,577
Available for debt repayments........... 286
Monthly UNsecured debt repayments....... 1,155
Amount short for making debt repayments. -869

Personal Balance Sheet Summary
Total assets (things you own)........... 3,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -42,000
Net Assets.............................. -38,500

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font

debt_doctor

Hi,

You could add another £200 pm on the groceries.
You cannot pay your mum back - she will be a creditor in your bankruptcy.

DD