SOA form

ash2260

Morning all,

i am looking at getting my finances in order as i got in debt after me and friend got given a 100% mortgage at 18 years old we couldn't really afford it at the time we both had car finance any ways we ended up taking more loans out to help pay the bills etc and in the end we both ended up just walking away due to our complete immaturity at the time fast forward 11 years give or take we both haven't spoke to each other in that time. I married now and want to get that mistake sorted cause i would like to eventually buy a house with my wife. So after hours a talking it through with the wife we have decided the best route to take in the long run is bankruptcy so i have filled out the state of affairs form and have attached it for any advice.

Thanks all in advance

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2 both owed and financed by my wife

Monthly Income Details[/b]
Monthly income after tax................ 1518
Partners monthly income after tax....... 400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1918

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 60
Gas..................................... 40
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 15
Mobile phone............................ 25
TV Licence.............................. 13
Satellite/Cable TV...................... 20
Internet Services....................... 25
Groceries etc. ......................... 400
Clothing................................ 40
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 80
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 62
Buildings insurance..................... 0
Contents insurance...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 0
Food at work............................ 80
Total monthly expenses.................. 1891


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,918
Expenses (including HP & secured debts). 1,891
Available for debt repayments........... 27
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 27

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

thevdm

A couple of things that I note:


1) There's no debts listed in your SoA, obviously I understand that there are debts, they're just not listed. Without that information accurate advice may be hard to come by.


2) Although the HP for the car is in your wifes name, if it's decided that public transport will be a feasable and cheaper method of you getting to work then the amounts for car insurance, maintenance, road tax etc... may not be included and instead replaced with a reasonable public transport budget.


I can't really comment on the figures given as I've not got a clue about what reasonable costs are for a couple.

thevdm

A quick side note, for an IPA the bills would be split based on your income, in such a case you would be liable for approx 3/4 of them and your wife 1/4. Would she be able to keep up on the HP payments for both cars if contributing 1/4 of the bills?

ash2260

thanks for reply.
My wife has more income i have only included what she contributes to the bills each month, cause we knew i couldn't get credit she got the cars and paid for them as well as the groceries and i cover the other bills.

I work roughly 20 miles from my house and start at 06:00 and finish at 18:00 so wouldn't be able to get public transport early enough to make it to work on time.

This next bit sounds ridiculous trust me i know i've spoke to the wife and parents about it as well as the CAB and every time i say it just makes me feel stupid, i have no idea at all the debts i owe as i've never been contacted about them i have no paper work from back then i left the property when i was around 22 still very immature and naive. But the property was repossessed and there is a short fall out there somewhere as well as the loans etch. I have been told to wait time out bit more but i really don't want this hanging over my head any more as i am losing out on opportunities in my life i have had to turn down the chance of owning my own company, my own house and i decided not to have kids due to this situation as i felt it wasn't right. I made this mistake all them years ago and just want to start to put it behind my and running away from it now is no longer what i want. The CAB advised me to sign up to the credit club to find out what debts i had which i have done and but due to the debts being over 6 years old there is nothing on there. So yeh i am here now i have the money to pay the fee and i'm bricking everything about the whole situation, i have opened a Barclays basic account but not started using it yet will wait till after i've applied and know where i stand before pay wages and get direct debits from there, until then will be paying my wages into my wifes account

thevdm

Hi, I did many stupid things in my younger years, I'm pretty sure 90% of us did so don't feel stupid about it. You're doing something to rectify the situation and that's what counts.


If the creditors have been updated with your address then you may find at least some of them are statute barred. Although by the sound of it you haven't been in contact with them. I would have thought a credit check would still show the defaults as they would be going on endlessly until they are cleared in some form or another, I may be wrong though.



I am inclined to agree with you, waiting it out will only prolong the situation and stop you moving on in life.


It sounds as though a car may be essential to you continuing your job, so the running costs should be accepted on the SoA as required.


On the SoA you would have to enter the full amount of your partners income so they can work out the correct split on the household bills. There should then be some method for her to deduct her contractual payments such as any loans/credit payments including the HP. Without her income being entered it would be assumed that the bills are split 50/50.
https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/technicalmanual/Ch25-36/Chapter31/part7/part3/part_3.htm#31.7.71

ash2260

i have read if a couple different places including this forum that i should only put down what she contributes to the bills. Her wage is just under 1300 a month 400 of this is for contribution to the bills as i put in soa and 500 is for the both cars on finance that leaves her 400 for her fuel car insurance/tax mobile phone, food at work and what ever else she decides to do with her wage as she is not involved in my situation and shouldn't be made to pay for this surely. i have no problem with putting her wage in but think its totally unfair that she would have to contribute more as well as pay for the cars which she cant just get rid of without paying a substantial amount that we cant really afford to do

debt_doctor

Hi,

I appreciate this may have been said to you before but;

If it is 11 years since you made any contact about these debts, and assuming no one made any payment and no court action took place prior to about 2014, then these debts are no longer legally recoverable from you. (actually any mortgage shortfall has 1 year to go, but was prohibited from collection under the CML rules after 6 years)

If no one is chasing you, and they can't take action, why would you impose bankruptcy upon yourself? It certainly won't help your key aim of getting a mortgage, presumably your bad credit has long gone, and you can use the usual methods to rebuild your credit.

Your SOA looks reasonable, but they may try to get you to pay an IPA for 3 years.

Good luck with whatever you choose to do.

DD

ash2260

But cant guarantee they haven't tried contacting me since. Again with the court action I wouldn't know if any action was taken against me. The other week I paid £8 to that trust online place and it came back as nothing but that could be just because the action was taken over 6 years ago.
The thing is beens I've now signed to credit club and it has linked me to my address so maybe letters will start coming. I literally have no information about my debts because I was too young and stupid to care about the impact on me in later life. So I dont know exactly when we stopped paying the mortgage or it got repossed.
I have had no credit what so ever since I moved out of the property all them years ago so when checking credit club my score was 909 which was a surprise.
If I was to start receiving letters what would you recommend me doing??

Thanks in advance

ash2260

Also I cant be sure that the person I brought the place with hasn't done anything with it due to us having no contact since we both left and wouldn't even know where he is now

debt_doctor

Talking on the phone in response to a letter does not amount to contact by you under the Limitations Act (The law that stops court action after 6 years). It also does not matter how many times they write to you - It is what YOU do, not them.

Your own mind is holding you a prisoner to your debts when in fact it is highly likely that there is nothing your creditors can do.

DD

debt_doctor

If you got letters I would suggest that you inform them that you will not be paying due to the debt being Statute Barred under the Limitations Act. Then see what they do, the requirement is upon them to show it isn't stat barred.
With any shortfall, tell them you will not be paying as they have contacted you well outside the CML guidelines for chasing mortgage shortfall debt.

DD