Soa

023456789

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1468.69
Partners monthly income after tax....... 315.04
Benefits................................ 82.8
Other income............................ 0
Total monthly income.................... 1866.53

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 36.95
Mobile phone............................ 40
TV Licence.............................. 38.62
Satellite/Cable TV...................... 8.99
Internet Services....................... 0
Groceries etc. ......................... 423
Clothing................................ 70
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 168.57
Childcare/nursery....................... 0
Other child related expenses............ 63.33
Medical (prescriptions, dentist etc).... 47.48
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 8.94
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 16
Entertainment........................... 9.99
Holiday................................. 0
Emergency fund.......................... 10
(Unnamed monthly expense)............... 0
Pet groom............................... 30
Pet food............................... 26
Total monthly expenses.................. 1759.87


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.................... 1,866.53
Expenses (including HP & secured debts). 1,759.87
Available for debt repayments........... 106.66
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 106.66

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

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

A couple of points
1 - my wifes income is the average monthly profit from her freelancing, I've deducted £7.99 for Microsoft, £1.99 for HP Instant Ink, £8.99 for web hosting, £9.50 for proffessional membership and finally a £40 allowance for NI and Tax payment. I may need to decrease that final one.
2 - child expenses are split between £20 for school relateed expenses and 42.33 for dinners ( based on £10 per week), we are applying for DLA as well which may help. Our son is autistic.
3 - The vet element includes £20 for vet bills and £10 for flea treatment
4 - medical breakdown is £23.48 for prescriptions (1 for my wife monthly, 1 monthly and 1 bi-monthly for me) and £24 for dentist and opticians, however I will need dental surgery that goes above the basic rate ASAP so would like advise on what I could put here.
5 - TV license is because I bought it mid year and will go down to the lower rate in a few months.
6 - I have a car right now, but its part of the reason why I am going bankrupt so will be handing it back to the HP company and will be going to use public transport.

Total combined debt is £30,464.19 (of which £13,304.06 is a HP loan) this is split between my and my wife.

Any advice will be gratefully received.

MovingForwards

Council tax............................. 112
Is this paid over 12 months?

Telephone (land line)................... 36.95
Do you need a landline?

Mobile phone............................ 40
When are the contracts up? Look to do sim only

Groceries etc. ......................... 423
You can easily trim this back by meal planning, writing a shopping list and buying cheaper brands, going to Aldi etc

Clothing................................ 70
This can be cut back, adults only need clothes when worn out, where do you buy the kids clothing?

Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Still costing you at the moment

Other travel............................ 168.57
What's this for? Would a season ticket work out better?

Medical (prescriptions, dentist etc).... 47.48
Ask your Dr to write the prescription for two or three months supply and explain its costing too much

Pet insurance/vet bills................. 30
What pet is it?

Life assurance ......................... 0
With a kid you could do with something, even if it pays out whatever a years wages is, gives a breather instead of rushing to find a better paid job etc

Haircuts................................ 16
How often? Delay it by a month or two

Pet groom............................... 30
Again, what pet and how often?

Pet food............................... 26
What you buying?

My above comments are only for your benefit, but the OR may question the pet expenses.

You are saying there is £30k debt, but where is it? Is it all for the car? If so, how much is outstanding on that?

If there are other debts, how much and how much do each of you owe?

You need to detail everything for proper advice as to what debt solution is suitable.

023456789

Thanks for the advice regarding the pet expenses, we have 1 cat and 1 dog. The dog food costs £8 per month (£4 per bag) and the cat is £18 per bag. We can probably try to reduce the expenses for the pets down truthfully.

Regarding the debt itself, it's £30,464.19 of which £13,304.06 is the balance of the HP loan. The HP car will be going back to them once I've submitted the application to go BR. The remaining £17,160 is mostly joint unsecured debts in default status, with some being owned solely by myself and few only belonging to my wife.

We have already been advised to go down BR by stepchange.

MovingForwards

I saw you asked on your other thread about allowable expenses, which no one is able to say, however the one I always have a look at is this one

http://www.thedebtmen.co.uk/pre-agreed-expenditure-guidelines/

Its more for doing a DMP but gives you some guidance, especially about pets (the figures you have for the pet do concern me as I doubt the grooming will be allowed). It will also show you where you can potentially increase your figures eg food, kid related etc.

In your other thread you also referred to your health, have you looked into benefit entitlement for yourself and potentially your family as a whole?

Bankruptcy would allow you to have a car under £1k plus the associated monthly expenses. Would that work out cheaper than your travel costs?

You need to try and get your outgoings to leave you with under £50pm as then there will be no monthly payment to the OR.

Hopefully Fatbelly will see your new thread.

MovingForwards

Just saw your comment.

Did they say bankruptcy or DRO?

Bankruptcy for your wife would be heavy handed especially as I'm guessing her debts are under £20k including the remainder of the car? If hers are under £20k a DRO is £90.

If I am reading this right, then potentially:

Wife does DRO as her total debts, including the outstanding HP, are under £20k.

Then, the HP falls into you, you do bankruptcy for £690 as yours will be over £20k.

How much is outstanding on the council tax, including any arrears?

If you can do a breakdown of the debts for each of you, we can see what is viable.

Example:

Wife
£2000 debt
£200 debt
£13400 HP
£1000 council tax

You
£13400 HP
£12000 debt
£500 debt
£1000 council tax

Hope that makes sense?

023456789

We will be both going BR, this is for a number of reasons. We've both been drowning under the debt cloud for so long and since setting up a DMP 4 years ago we are still in the same position now as back then and the end date hasn't moved. My wife is a self employed freelancer whose invoices haven't been stable and also took a nose dive a year ago which put us in an even worse position. This is also putting us in a poor mental health state also.

Combined we have £30,617.41 in debt which is split at £24770.25 for me and £5847.16. Now whilst my wife may be able to go down another insolvency route, the advise we've been given along with the unpredictable nature of her income means that BR is our best option.

MovingForwards

DRO (debt relief order) appears to be suitable for your wife. Its an easier bankruptcy and debts must be under £20k etc. Have a look at the requirements. To do a full bankruptcy for your wife is potentially overkill and heavy handed.

Bankruptcy for you.

Still hoping other members will be along to discuss the options.

023456789

Thanks for the reply. My wife is going to speak with Business Debt Line tomorrow to get advice on her situation

fatbelly

023456789 wrote: »

[6 - I have a car right now, but its part of the reason why I am going bankrupt so will be handing it back to the HP company and will be going to use public transport.

Total combined debt is £30,464.19 (of which £13,304.06 is a HP loan) this is split between my and my wife.

Any advice will be gratefully received.

I would voluntarily terminate the HP now (formally, under the Consumer Credit Act), unless it is already defaulted. Your liability is then limited to 50% and you may find the HP debt is a lot smaller than you thought, potentially allowing both of you to look at DROs. I'm not saying at this point that you would both qualify but it makes sense to get the debts as low as possible and then look at options.

023456789

I will be terminating the agreement prior to it going into default.

fatbelly

023456789 wrote: »

I will be terminating the agreement prior to it going into default.

Good. See how much remains on the agreement and have a look at your debt options when you know how much you owe..