HELP!-BR hopefully this week advice needed!

fiveyearplan

I had my lightbulb moment in May this year and realise there is no way I can struggle with my debt any longer. I have a business that was just closed down last week and another business that is struggling but should pick up early next year. The struggling business (B1)I had first and was doing really well in 2004 & 2005 so I decided to venture out and open another business in a different but similar line of work. Anyway the business that has closed (B2) is where all my debt has been incurred. I am married with 2 teenage children and my OH doesn’t have an income now that B2 has closed. Our house is mortgaged for £279,000 and may be worth about £315,000. My income is through my self employment in B1 and is hard to calculate but is somewhere between £400 and £600 per week. I will be able to increase this once the headache from B2 is finally over. I have a car on HP with 8 payments left but have not paid it since June this year and have received letters from finance company. OH has a runabout that isn’t worth much.

So take current income at say £2,000 per month and child benefit at £120 per month and that gives £2,120 per month.

Outgoings (this is very rough and I would like some advice here please)

Mortgage £1165
Council tax £165
Gas £70
Elec £94
Tv licence £11
Car insurance £50 (for both cars)
Phone £50 (includes free broadband)
Housekeeping £300 – can I increase this?
Mobiles £40 – not sure if I can claim this
Petrol £160
Haircuts ?
Prescriptions ?
What else can I claim for – I just can’t think right now

Most of my debts from B2 are in my personal name and most of my personal debts have been incurred in trying to keep it afloat for the past 2 years.
Lloyds £9,000 + £6,000 overdraft
Barclayloan £19,000
MBNA 8,000 (2 credit cards)
Mint £3,600
Monument CC £3,100
RBS CC £2,600
Career Development Loan – Clydesdale Bank £3,000
Car HP £2,000
Barclaycard £3,000
Store cards 3 totalling £2,700
Professional fees (my accountant and solicitor) £600
I think there may be a few others but that’s enough for now!!
Total £62,600 debt

Thanks for reading!

ps I'll be petitioning my BR at the RCJ.

betterlatethannever

Hi FYP.
If you look here http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM800120.htm it may give you some idea of what you can put on your I&E.
You can also included holidays. I'd also say you can up your housekeeping to well over £400 pcm.
You can't include broadband unless you can show you need it in some way e'g for a training course or for work purpose.

Not sure about the amount you have for mobiles, maybe you can included this but make it your holiday money. (only allowed £20 ish, can you go to a better deal or PAYG?)
You can also include some money for repairs and maintenance.
Hope that helps a little.
good luck!

debt_doctor

Hi,

I would put another £ 100 per month on your h/k, put in a holiday fund of £ 80 per mth, hair cuts £ 20 per month. OR may well dissallow your mobile but leave it in anyway.

Your CB will not count as income.

Good luck with everything

ps whats the story with the house ???

DD

edit; you just beat me to it BLTN !!

fiveyearplan

Thanks BLTN & DD.

The story with my house is we hope to keep it. We have an early redemption penalty of £15,000 if we sell before October 2008. In the state of the market it would probably only fetch £300,000 so I think my husband could probably buy my beneficial interest.

The broadband is free, we are with talk talk and it is the line rental we pay for.