📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Is Bankruptcy as Daunting and Scary as it seem

Options
12467

Comments

  • Mart7379
    Mart7379 Posts: 207 Forumite
    100 Posts Second Anniversary Name Dropper
    MissFlossy222 said:
    You've nothing in there for birthdays or Christmas.  You're also allowed £20pm savings which you could use to build an emergency fund.
    Sorry only just seen your post, Wouldn’t have a clue what figure to put in for Xmas and birthday presents, that’s a realistic figure, 3 kids, on average we spend £250 on each. (Still quite young so Christmas is quite cheap) is £1k a reasonable amount per year? 

    Never had any savings or have spare cash to save, so automatically left it blank. 
  • Mart7379
    Mart7379 Posts: 207 Forumite
    100 Posts Second Anniversary Name Dropper
    just been updating my account on Stepchange, using rhe Debt Advisor tool. At the end it stated my surplus was £39, and my available options would be an IVA, Bankruptcy or a Token Payment. Then goes on to say further down the page, 'not eligible for DRO as surplus is too high. 
  • flipflopflo
    flipflopflo Posts: 485 Forumite
    Third Anniversary 100 Posts Name Dropper
    Presents (birthday, christmas etc)......0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0

    These are the catagories that you can add to your SoA. You have around £50 to play with so just spread that around and you have no surplus.
  • runforlife
    runforlife Posts: 444 Forumite
    Part of the Furniture 100 Posts Name Dropper Photogenic
    Get yourself some life insurance and don’t forget that your council tax will increase in April as well as most mobile phone contracts go up then too. Thatll soon eat into your surplus. Have you sent this site? https://debtcamel.co.uk/debt-options/guide-to-debt-relief-orders/
  • Mart7379
    Mart7379 Posts: 207 Forumite
    100 Posts Second Anniversary Name Dropper
    The council tax is £108 for the forthcoming year, as I received my bill via email a couple of weeks ago. I actually forgot my bill is increasing from April, I also received a text message from them last week. 

    I’ll have a look at some life insurance quotes, do I necessarily need to take out a policy before I enter into a DRO or BR?  Will they check if it is an active policy?
  • luvchocolate
    luvchocolate Posts: 3,390 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Home Insurance Hacker!
    I would be careful about life insurance policies as they could be regarded as an asset. Although you can usually buy out the ORs interest. 
    Hopefully someone more experienced will reply soon 
  • Mart7379
    Mart7379 Posts: 207 Forumite
    100 Posts Second Anniversary Name Dropper
    Updated SoA showing 58p Surplus.......


    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... [b]

    Monthly Income Details[/b]
    Monthly income after tax................ 1688.33
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 1688.33[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 425.88
    Management charge (leasehold property).. 0
    Council tax............................. 108
    Electricity............................. 65
    Gas..................................... 65
    Oil..................................... 0
    Water rates............................. 60
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 13.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 480
    Clothing................................ 50
    Petrol/diesel........................... 80
    Road tax................................ 1.75
    Car Insurance........................... 63
    Car maintenance (including MOT)......... 30
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 15
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 22
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 12
    Life assurance ......................... 10
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 60
    Haircuts................................ 27
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 20
    Gym Membership.......................... 20[b]
    Total monthly expenses.................. 1687.75[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 0[/b]
    [b]
    No Secured nor Hire Purchase Debts[/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR[b]
    Total unsecured debts..........0.........0.........-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,688.33
    Expenses (including HP & secured debts). 1,687.75
    Available for debt repayments........... 0.58
    Monthly UNsecured debt repayments....... 0[b]
    Amount left after debt repayments....... 0.58[/b]

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

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Mart7379
    Mart7379 Posts: 207 Forumite
    100 Posts Second Anniversary Name Dropper
    Beginning to lose faith in the Stepchange debt tool, I have purposely altered my income and expenditure to show I do not have any income left other once I’ve paid all my bills and essential costs, 
    income £1668 
    expenditure £1668
    Money left for debts £0.00
    Yet, still stating I am not eligible for a DRO?!?! As I have enough money in my budget to make some sort of payment towards a BR or IVA



  • luvchocolate
    luvchocolate Posts: 3,390 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Home Insurance Hacker!
    Fatbelly is our DRO person on here hopefully he will catch up on this thread 
  • Mart7379
    Mart7379 Posts: 207 Forumite
    100 Posts Second Anniversary Name Dropper
    Just altered it slightly to use up the 58p surplus
    In regards to applying for a DRO do i need to find a debt charity to do it for me or is it like applying for BR, something you have to apply for yourself

    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... [b]

    Monthly Income Details[/b]
    Monthly income after tax................ 1668.33
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 1668.33[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 425.88
    Management charge (leasehold property).. 0
    Council tax............................. 108
    Electricity............................. 65
    Gas..................................... 65
    Oil..................................... 0
    Water rates............................. 60
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 13.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 480
    Clothing................................ 50
    Petrol/diesel........................... 80
    Road tax................................ 1.75
    Car Insurance........................... 63.58
    Car maintenance (including MOT)......... 30
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 15
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 22
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 12
    Life assurance ......................... 10
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 60
    Haircuts................................ 27
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 20[b]
    Total monthly expenses.................. 1668.33[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 0[/b]
    [b]
    No Secured nor Hire Purchase Debts[/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR[b]
    Total unsecured debts..........0.........0.........-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,668.33
    Expenses (including HP & secured debts). 1,668.33
    Available for debt repayments........... 0
    Monthly UNsecured debt repayments....... 0[b]
    Amount left after debt repayments....... 0[/b]

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

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.3K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture