BR expenditure advice

Sammy_w

Hi All, 

Hope for some advice / guidance please. 

I've got myself into a situation where I feel BR is the only viable option.  However after reading may posts here I'm concerned about my soa / expenditure. 

Background:

I was a high earning professional and could easily mange my debts approx £25k.   However a few years ago my marriage ended in separation, I suffered a lot from depression and lost my job.  

I've now a permanent position but have dropped £15k, now earning £40k.

I need some advice on reasonable expenses.

    1. Although my child doesn't stay with me, he does visit in the week and weekends.   Can I include this in my food budget?

My employment contract requires me to have my own vehicle.   My dad has allowed me to use his old car but I'm responsible for all associated costs. 

    1. I'm paying my dad £100 for use of the vehicle to cover depreciation.  Is this allowed? 

    2.My insurance is expensive due to claim history, and business use.  £1300 a year.

    3.Insurance excess is also huge £950.  As I need the vehicle to maintain employment, I need this amount readily available.  Am I able to setup a saving fund / pot to cover this cost? 

    4.Due to the mileage I will be doing & the cars age / mileage.  I anticipate the car will need a fair amount spent on its upkeep, not just regular maintenance. Again can I setup a saving pot for this? 

    5.Due to the annual mileage in 3 years the car will be practically worthless and maintenance too excessive so will need to be replaced.   Am I allowed to save another pot for this eventuality? 

With regards to my son.  I'm paying child maintenance to his mom.  However what is deemed reasonable for me?  I want to maintain a close relationship even though we are not living together and I'm worried this will not be allowed. 

Can I have a holiday savings for us?  Is £600 acceptable?  I'm basing this on a 4 night uk butlins stay.   

Is extra curricular expenditure allowed?  With the little time I see him I like to ensure it's quality time.  So every Sunday we make a trip to the local library / museum and spend some time helping with his homework.  Weekly cost £10 for public transport. 

Am I allowed any entertainment / leisure budget to pay for things like monthly trip to cinema / meal.   Or gaming subscription?   I'm really worried that if I can't provide these things my son will be less willing to spend time at mine fyi he just turned 13. 

Am I allowed to provide any pocket money?  Can I contribute to school trips?  My son is fairly intelligent and managed to get into a grammer school and into a languages program.   But this means increased costs especially as require a school trip to China at some point. 

I'm really struggling at the moment.  Since the separation its a daily battle with my depression.  Although I know it's not right atm I'm just trying to survive for the sake of my son.   I don't want to fall back into the mental state I have been in. 

Other expenditure

Clothing:  I need to wear business suits to work.  I know dry cleaning is allowed, but can I factor in replacement suits? 

Professional development:  since loosing my job after the separation I've struggled to maintain a similar role.   Can I budget in professional exams / online training resources?   I really need a better role I'm not too concerned about the salary but my current roles requirement of me having a vehicle, etc is difficult.   I could afford to take a further substantial drop in salary if I removed vehicle expenditure.  But this will impact my future career opportunities. 

Concidering I'm still earning a decent wage I feel the related expenses mean I'm still no better off.   But it does keep me in the field and hopefully I can get a better role in the future.

Savings:

My role only pays SSP - am I allowed to create a savings pot to cover say 4 days per annum sick?

I need my laptop for training and its also used by my son for homework etc.  The device is now 9 years old and begin to have issues can I save for its replacement? 

Work expenses:  I'm required to travel which will include overnight stays, etc.  The company do not provide a company credit card we are expected to use a personal credit card and claim expenses.   Obviously I have no access to credit.   So again can I build up a savings pot of £600 to cover these expenses. 

I think my concerns are really around the sfs it seems to be designed for those on benefits or lower incomes.   Things like savings with my employment requirements is necessary but reading the guidelines it is not accounted for.   

I'm working on my soa but it showing a huge negative which I know is not possible.  I'm basing the expenditure on what I need to eventually get out of this situation. 

Thanks in advance 

Sam

JCS1

Evening - have you taken any advice from one of the free debt charities?  I feel at the moment you are not aware of the full impact of BR, and a lot of things you want to have savings pots for while not be allowed (or if they are, at a much smaller value than you would like).  It may be that a DMP or IVA may be more suitable

luvchocolate

Agree with above...so many questions. 
Read the Insolvency Service site and all the stickies on here. 
Contact one of the debt free charities 

MalMonroe

Hi, I'd also recommend speaking to someone at one of the debt help agencies. I contacted StepChange, click on the link here for details  https://www.stepchange.org/

They really know their stuff and will be able to advise you what course of action would be best for you. Should you wish to take their advice, of course. As JCS1 says, you may not be aware of the full impact of bankruptcy. You have a well paid job, even if you have taken a cut in salary.  I feel sure that there is a better option for you than bankruptcy.

But please do contact StepChange or one of the other debt help agencies before you take any action, they'll be able to help and their advice is all free.

SkintSquaddie

We asked about a savings pot for a holiday when I went bankrupt we was told no. Also I was told child maintenance is there to cover costs to the child I know it doesn't cover everything but that's how they see it things they allow you to have included in expenses are basic TV packages etc so. I am by no means an expert but I'd set yourself up for not been allowed most of the things your wanting to save up for and probably have a substantial IPA.

Minkym00

Kid in food budget - yes.

Dad’s car - don’t call depreciation, call it rental costs.

Insurance - if that’s what you’re paying now, then yes.

Excess - no. You can’t save for something that might happen.

Maintenance on car - as long as you can prove that’s what you’re spending now, then add as an annual expense

Saving for replacement car - no

Child maintenance - if it’s over and above what would be court ordered then you may struggle

Holiday - no

Extra curricular expenditure - £10 for public transport is perfectly reasonable

Entertainment / leisure - you are allowed an expense for this but how much will depend on your other expenses

Pocket money - yes. A school trip to China, unlikely 

Business suits - add in to your clothing budget and explain why you need that amount

Professional development - unless vital to your current role, then unlikely.

That said, as others have pointed out, bankruptcy may not be the best option and once you’ve done it there’s no going back. Get some advice from one of the debt charities.