In that place again...Questions

battyboimatt

Due to my mental health (Bipolar) and the fact I lost my full-time job, due to my ill health. I find myself in that position again where I am drowning in debt. To try and better myself I enrolled at University so my only income is student loan

I have spoken to Stepchange and they have again recommended bankruptcy, However, they say I have 722 a month available because they are simply dividing my student loan £8666 by 12. However, I really don't have £722 a month because I get 3 payments across the year of £2888 (September, Jan, April) and when I get them, they quickly go because I have to pay what I owe and save some for car parking, placement etc. My course is 46 weeks a year out of 52.

I am still waiting to hear about PIP claim, my question is if I do go Bankrupt a second time, will they count my student loan and pip as income, because then if I get pip they will say I have £1000 a month available.

TripleH

I don't know about your student loan etc, but if you go bankrupt, you will speak to a person who is able to consider all circumstances and can be flexible.

Do bear in mind that if you go bankrupt, you will not have access to credit facilities so cannot use a card to pay in advance and replace when your student loan comes in.

How much do you owe, there might be other options members here can suggest?

battyboimatt

Hi TripleH,

Oh, I have looked at other options, I was 26K in debt, luckily a couple of creditors have written off what I owe them, so but others won't which is understandable, so all in all about 23K worth of debt, so its over the 20K for a Debt Relief Order, plus i guess I would have more than £50 spare if they work out my loan divided by 12 month.

I know I won't have access to credit facilities, but a lot of my accounts have already defaulted. I appreciate your quick response.

Momofthree_2

What are your outgoings?

Minkym00

I’m really surprised that StepChange have said this. The OR will consider your income and expenditure and look to claim any surplus, not the whole thing. It would be helpful if your could put up a statement of affairs on your thread and you will be given advice based on that.

battyboimatt

Sorry about my delayed, the response I have had a bad week with my mental health, I've done the Statment of Affairs the best I can, I've probably missed stuff off but it's the all I can think of at the moment. The income is purely student loan 8666 / 12 and the benefits are PIP.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 722
Partners monthly income after tax....... 0
Benefits................................ 434
Other income............................ 0
Total monthly income.................... 1156

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 40
Groceries etc. ......................... 220
Clothing................................ 40
Petrol/diesel........................... 200 (Uni Travel and Placements)
Road tax................................ 14
Car Insurance........................... 30
Car maintenance (including MOT)......... 30
Car parking............................. 30 (At least this £2 a day while at uni and £5.70 a week on Placement)
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 9
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1008


Assets
Cash.................................... 100
House value (Gross)..................... 0
Shares and bonds........................ 100
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 700

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Cards ..................26000.....0.........20
Total unsecured debts..........26000.....0.........-


Monthly Budget Summary
Total monthly income.................... 1,156
Expenses (including HP & secured debts). 1,008
Available for debt repayments........... 148
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 148

Personal Balance Sheet Summary
Total assets (things you own)........... 700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -26,000
Net Assets.............................. -25,300

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

MovingForwards

I assume you are living with family as you have nothing for utilities?

If you want to go for a BO then look again at your outgoings.

I'm sure your food costs more than you have said. Equally with an older car you would need to increase your repair and MOT fund payment,

You are only paying £10pm for hair? If you are female I'm guessing it's more than that. If you are male, then it's about right.

Vet bills etc, you have to feed whatever let you have.....

You have nothing for entertainment? You must buy a newspaper, magazine, go out for a coffee.

And I'm sure you buy token birthday and Christmas presents for close family and friends.

Ooops, looks like you may not have as much spare each month as you thought you would

battyboimatt

Moving Forwards, yes I live at home with parents and what I give them covers the gas and electricity. I thought the food was reasonable, I don't eat much. My car is a shed on wheels and but gets me about. And entertainment I might buy the odd dvd etc, but I rarely leave the house apart from uni and placement, I haven't factored anything in for my health needs. I don't know if the OR would class student loan as income as really its a loan that has to be paid back when I start earning over 25K

debt_doctor

Hi,

An IPA is generally only taken from earned or pension income - and you don't have any.

Insolvency Service Technical Manual:

Section (l) Student loan income



31.7.78 Student loan income

It should be noted that where a bankrupt is in receipt of a student loan this is not income which can be claimed under an IPA/IPO.

DD