Both going bankrupt.

Bcfc171081

Hi me and my partner are going bankrupt, we’ve tried IVA and DMP both failed.

My main question is when filling our outing going do we split them 50/50 or put the full amount on both! ie rent, council tax etc etc

debt_doctor

Hi,

As you are both going BR the Insolvency Service will very likely take in to account your full income minus all of your reasonable costs and if a surplus is left then they will pro rata the surplus (based on your different incomes) as two individual IPA's. BUT only if there is surplus income - you should post your SOA on here for us to look at.

DD

Bcfc171081

Ok will do later today. So shall I do 1 SOA will all our income and outgoings together?

Bcfc171081

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 5
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 567
Other income............................ 0
Total monthly income.................... 2167

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 35
Gas..................................... 66
Oil..................................... 0
Water rates............................. 48
Telephone (land line)................... 13
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 60
Internet Services....................... 28
Groceries etc. ......................... 700
Clothing................................ 25
Petrol/diesel........................... 40
Road tax................................ 30
Car Insurance........................... 76
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 30
Entertainment........................... 50
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 2161


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
British Gas arrears ...........2450......250.......0
Council Tax arrears ...........2000......220.......0
Wessex water arrears ..........767.......125.......0
Next...........................1200......43........0
Barclaycard ...................2566......45........0
MBNA...........................4368......100.......0
Citi financial ................1147......78........0
Capital one ...................890.......36........0
Lloyd’s bank ..................9358......112.......0
Vanquis Credit card ...........3256......96........0
Total unsecured debts..........28002.....1105......-


Monthly Budget Summary
Total monthly income.................... 2,167
Expenses (including HP & secured debts). 2,161
Available for debt repayments........... 6
Monthly UNsecured debt repayments....... 1,105
Amount short for making debt repayments. -1,099

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt....................-28,002
Net Assets.............................. -26,802

debt_doctor

There is nothing wrong with your expenses and any IPA is out of the question in my view.
In any event, your partner cannot get an IPA as they have no earned or pension income.

If the 'offer' of an IPA comes your way you should say NO, then get back on here.

DD

Bcfc171081

Thank you!! Couple more questions (I promise) then I’m just gonna go for it.

I read that council tax would go in with the arrears leaving no CT until next year. What would happen to that outgoing?

Will they be happy with us having 2 cars. They are both very little in value but with me working and my wife with kids we do need 2 cars really.

debt_doctor

Bcfc171081 wrote: »

Thank you!! Couple more questions (I promise) then I’m just gonna go for it.

I read that council tax would go in with the arrears leaving no CT until next year. What would happen to that outgoing?

Will they be happy with us having 2 cars. They are both very little in value but with me working and my wife with kids we do need 2 cars really.

Put your c/tax payment on to your housekeeping / clothing. You are both going to have to prove a need for your cars. Highlight the potential of any unusual hours / lack of public suitable transport / short notice transport needs / any assistance towards a disability of someone etc. Never any guarantees on cars.
DD

fatbelly

How does the debt divide between the two of you? Would either party fit the criteria for a DRO?

Basic Criteria for a debt relief order :

•Must not be a homeowner,

• Debts less than £20,000,

• Can have a car worth up to £1000,

• No other assets of more than £1000,

• Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

• Cannot have had a DRO in last 6 years.

Bcfc171081

Ah mine maybe under 20k most of the big ones are my wife’s. If I did that then would BG, CT and water arrears just goto her then she puts them on her BR??

fatbelly

Bcfc171081 wrote: »

Ah mine maybe under 20k most of the big ones are my wife’s. If I did that then would BG, CT and water arrears just goto her then she puts them on her BR??

Yep. Only £90 for a DRO and much simpler.

Edit: the car that you own needs to be valued at less than £1000 on Parkers Guide