Possible Bankruptcy SOA

Anxietyoverload

Hi,

I posted yesterday on the DRO part of the forum until I realised with certain debts I have entered on the StepChange as extra expense I do not qualify for a DRO.

Since seeking further debt advice I have been advised to either hold off my debtors and asking them to freeze interest and waiting for my universal credit/CTC overpayments clears which would end in just over a year and would free up an extra £166 a month to contribute towards a DMP or to go bankrupt.

From what I’ve considered I feel bankruptcy will be best as it’d take 5-6 years to pay off my debt via DMP and that’s after waiting a year for the UC/CTC payments to clear. The bankruptcy IPA would take 3 years. I know bankruptcy shouldn’t be taken lightly and the initial fees of it. However, I rent from a Housing association that is not likely to change, it would not affect my current job and I intend to hopefully not get credit again and live within my means! Also think either way my credit rating is screwed anyway. So I’ve amended my budget based on if I were to go bankrupt and was wondering you guys advice on if it was likely to be accepted and if it’s a reasonable amount to aspire to live comfortably for myself and my child.


Monthly Budget Summary Amount(£)
Total monthly income 1,734
Monthly expenses (incl. HP & secured loans) 1,655
Available for debt repayments 79
Household Information

Number of adults in household 1
Number of children in household 1
Number of cars owned 0
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 863
Partners monthly income 0
Benefits 871
Other income 0
Total monthly income 1734
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 529
Management charge (leasehold property) 0
Council tax 135
Electricity 45
Gas 45
Oil 0
Water Rates 45
Telephone (land line) 0
Mobile phone 56
TV Licence 13
Satellite/Cable TV 30
Internet services 20
Groceries etc. 350
Clothing 43
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 99
Childcare/nursery 90
Other child related expenses 15
Medical (prescriptions, dentists, opticians etc.) 10
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 20
Haircuts 20
Entertainment 50
Holiday 20
Emergency Fund 20
Total monthly expenses 1655

Willing2Learn

Your SOA is incomplete. For example, it says nothing about your debts.

Please complete the SOA online form in it's entirety, filling in every available section. Please remember to click on the 'format for MSE' button near the bottom of the form. Then you can copy & paste it into this thread.

Thanks

Anxietyoverload

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 863
Partners monthly income after tax....... 0
Benefits................................ 871
Other income............................ 0
Total monthly income.................... 1734

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 529
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 0
Mobile phone............................ 56
TV Licence.............................. 13
Satellite/Cable TV...................... 30
Internet Services....................... 20
Groceries etc. ......................... 350
Clothing................................ 43
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 99
Childcare/nursery....................... 90
Other child related expenses............ 15
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 20
Emergency fund.......................... 20
Total monthly expenses.................. 1655


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
A CC...........................3150......144.......0
A loan.........................3350......140.......0
Cap cc.........................1250......40........0
UC o/P.........................1800......166.......0
TSB cc.........................1200......30........0
TSB loan.......................3000......114.......0
TSB overdraft..................1700......26........0
Paypal.........................1150......30........0
Total unsecured debts..........16600.....690.......-


Monthly Budget Summary
Total monthly income.................... 1,734
Expenses (including HP & secured debts). 1,655
Available for debt repayments........... 79
Monthly UNsecured debt repayments....... 690
Amount short for making debt repayments. -611

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,600
Net Assets.............................. -16,600

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

Anxietyoverload

Any advice guys? 😬 so much anxiety at the moment and can’t stop thinking about this..

Willing2Learn

Try not to worry. I am not a debt counsellor and am not qualified to give advice on a solution. Someone will eventually be along to advise you.

Minkym00

Can you explain why a debt relief order is not suitable, it’s not clear from your post? You have under £20k if debt and no assets. You can easily massage your SOA to get the surplus down to under £50.

Anxietyoverload

The StepChange website is a bit different in putting in your expenses. I’ve completely confused myself now... Basically I put in the stuff on StepChange and it came out differently than this. I have a CTC overpayment and UC advance that I’m paying back, but on their figures it worked out I had more than £50 surplus at the end of the month. From my point of view a DRO would be ideal, but feel like I’ve pushed these numbers to the max to try and make sure my son can live comfortably anyway. I’m worried whichever route I go they won’t accept my SOA and tell me to live on like £20 of food or something

Out of curiosity which numbers do you think I could massage? I think I possibly need to go to CAB or CAP to sit down properly and talk it all out.

MovingForwards

Food, travel and child related could cost more than what you have budgeted for.

After all, kids are notoriously fussy with what they will eat, like the taste of and texture.

Travel, I'm sure it costs a little bit more with the extra buses and trains you occasionally catch to go to free events.

I'm not sure £10 pm would cover eye test, glasses, prescription, dentist for you, plus your kids over the counter Calpol etc.

Kids also have growth spurts, they seem to need a new winter coat each year til they are about 16, shoes and pumps I'm sure you kid gets through a few of them each year.....

You also have nothing for contents insurance, it's one thing as an adult starting over with nothing, but a child's stuff wouldn't be easy or quick to replace.

debt_doctor

Hi,

Whether a DRO or bankruptcy your surplus is calculated in exactly the same way - by using the Standard Financial Statement (SFS). Your SOA does not look out of the ordinary to me, and indeed you could add £100 to the groceries amount and wipe out your 'surplus'.

DD