SOA on behalf of father - BR/DRO

Momofthree_2

Hi all

Please can you give me some feedback on my dads SOA & circumstances. Hoping for a DRO. Bankruptcy is second option.!

Circumstances. Dad approx 16-18k debt (exact figures TBC) his partner is NOT doing DRO/BR. However her income is very low due to part time work -medical reasons- & she has own personal debts (a car and a loan) Neither payment is included in the SOA below.

Fuel - is for 2 cars.
Sky - partners name & in 18m contract
Groceries - partner food intolerances, has to have a gluten and dairy free diet.
Medical- includes dentist and opticians, contact lenses plus ongoing prescriptions and a prepayment card for his partner.

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1570
Partners monthly income after tax....... 725
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2295

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 575
Management charge (leasehold property)0
Council tax............................. 142
Electricity............................. 80
Gas..................................... 50
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 55
TV Licence.............................. 12.50
Satellite/Cable TV...................... 60
Internet Services....................... 0
Groceries etc. ......................... 550
Clothing................................ 80
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 120
Car maintenance (including MOT)......... 40
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 60
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 30
Emergency fund.......................... 30
Total monthly expenses................ 2314.50

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1700
Other assets............................ 0
Total Assets............................ 1700
No Secured nor Hire Purchase Debts

Unsecured Debts
Description...............Debt......Monthly...APR
Loan...........................10000.....230.......0
Credit cards ..................6000......350.......0
Total unsecured debts..........16000.....580.......

Monthly Budget Summary
Total monthly income.................... 2,295
Expenses (including HP & secured debts). 2,314.5
Available for debt repayments........... -19.5
Monthly UNsecured debt repayments....... 580
Amount short for making debt repayments. -599.5

Personal Balance Sheet Summary
Total assets (things you own)........... 1,700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,000
Net Assets.............................. -14,300

Questions

- should I add partners loan and car payment to the household expenditure? If so, where?
- is a DRO possible or will they refuse this expenditure?

Feedback welcome but I am not looking to 'save' as such its an SOA for BR/DRO figures.

Thanks
L

tom9112

Your debt is only £16k, I don't believe you would qualify for BR and even if you did you might get an IPA based on the income and basic expenses.

I would review your situation with Step Change when it comes to anything other than BR.

Daniel1971

I wouldn’t personally process a DRO for your father based upon uplifts in higher areas of expenditure would mean he would have over £50 monthly to offer to the creditors. A DRO budget would usually be very minimal and not account for holiday savings, emergency fund etc

debt_doctor

Hi,

In my view (and I process DRO's) your dad will fit the less than £50 pm surplus income requirement to be entitled to a DRO.

Income and expenses are calculated by using the Standard Financial Statement SFS (Same as used for IPAs in bankruptcy.) which allow for reasonable - NOT basic - expenses and allow a variety of discretionary expenditure such as groceries, communications and leisure and personal costs.

These expenses are limited by a 'trigger figure' cap based upon the family make up. I have looked at the trigger figures are the expenses are below the trigger figure amounts.

Dads income is clearly higher than his partners income so I multiplied all of the expenses by 0.684 ( Larger income - dads - divided by the total income of both parties) this is dads contribution to the expenses you have listed.

I have not included the extra costs of the partner you mentioned, even though she will still need to pay them.

Dad needs to go through Citizens Advice or National Debtline - You're unlikely to get a DRO from Step Change with that income.

DD