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Why everyone forcing IVA over bancrapcy

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  • A SOA

    SOA Calculator (lemonfool.co.uk)

    You need to be 100% honest with your figures, not what you think or hope you spend.

    When you have done it format it for MSE and put it up here.


    If you go down to the woods today you better not go alone.
  • RAS
    RAS Posts: 35,648 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Bankruptcy is not necessary for debts under £30k and also has a limit on the value of a car. It also involves 3 years possible Individual Payment Arrangement should your income increase. 

    A DRO lasts a year, and if it's accepted you are unlikely to earn enough to make any difference in that time.
    If you've have not made a mistake, you've made nothing
  • SOA to follow 

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

    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 2
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 500
    Partners monthly income after tax....... 1534
    Benefits................................ 2100
    Other income............................ 157[b]
    Total monthly income.................... 4291[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 200
    Rent.................................... 1410
    Management charge (leasehold property).. 0
    Council tax............................. 210
    Electricity............................. 190
    Gas..................................... 140
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 110
    TV Licence.............................. 13
    Satellite/Cable TV...................... 20
    Internet Services....................... 22
    Groceries etc. ......................... 600
    Clothing................................ 50
    Petrol/diesel........................... 100
    Road tax................................ 20
    Car Insurance........................... 54
    Car maintenance (including MOT)......... 100
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 823
    Other child related expenses............ 50
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 85
    Buildings insurance..................... 30
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 50
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 4412[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0[b]
    Total Assets............................ 1500[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 1800.....(200)......0[b]
    Total secured & HP debts...... 1800......-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Loyds loan ....................5135......500.......0
    credit cards ..................17900.....450.......0[b]
    Total unsecured debts..........23035.....950.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 4,291
    Expenses (including HP & secured debts). 4,412
    Available for debt repayments........... -121
    Monthly UNsecured debt repayments....... 950[b]
    Amount short for making debt repayments. -1,071[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -1,800
    Total Unsecured debt.................... -23,035[b]
    Net Assets.............................. -23,335[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • SOA corrected : 

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

    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 2
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 500
    Partners monthly income after tax....... 1534
    Benefits................................ 2100
    Other income............................ 157[b]
    Total monthly income.................... 4291[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 200
    Rent.................................... 1410
    Management charge (leasehold property).. 0
    Council tax............................. 210
    Electricity............................. 190
    Gas..................................... 140
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 110
    TV Licence.............................. 13
    Satellite/Cable TV...................... 20
    Internet Services....................... 22
    Groceries etc. ......................... 600
    Clothing................................ 50
    Petrol/diesel........................... 100
    Road tax................................ 20
    Car Insurance........................... 54
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 823
    Other child related expenses............ 50
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 85
    Buildings insurance..................... 30
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 50
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 4332[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0[b]
    Total Assets............................ 1500[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 1800.....(200)......0[b]
    Total secured & HP debts...... 1800......-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Loyds loan ....................5135......500.......0
    credit cards ..................17900.....450.......0[b]
    Total unsecured debts..........23035.....950.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 4,291
    Expenses (including HP & secured debts). 4,332
    Available for debt repayments........... -41
    Monthly UNsecured debt repayments....... 950[b]
    Amount short for making debt repayments. -991[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 1,500
    Total HP & Secured debt................. -1,800
    Total Unsecured debt.................... -23,035[b]
    Net Assets.............................. -23,335[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

  • RAS
    RAS Posts: 35,648 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Thanks, can you clarify who the third adult is?

    And what the "other income" is?
    If you've have not made a mistake, you've made nothing
  • This is my recent budget is already reduced, and not including money we spend for dog food and my girlfriend cigarettes and any potential unusual expenses like for example we had funeral last week and my girlfriend had to travel back to Portugal, however I did included entertainment of 50 where not every month we will spend those money and that way we can ballance everything on 0.

    Ofcorse we will imply additional cuts to our budget to be on 0, or small surplus just for unexpected.

    As well we will sell car and perhaps have cheeper one or just really on public transport this will give us missing 150 a month to be on 0

    I'm sorry it can look complicated perhaps.
  • Ps , although we renting we paying for house insurance ( it's actually content insurance) to cover my self employed equipment and household items we have although those items are very low value. We had burglary few years back hence we took this insurance, but I will not renew to save money, hope dogs will be enough to scare potential robbers away.  
  • You still haven't said who the third adult is.
    If you go down to the woods today you better not go alone.
  • Oh sorry about, third adult is my far relative , hi is in bad situation and he live with is but he don't contribute with any money towards anything, he helps with household duties and sometimes look after my daughter, recently he helped me borrowing me do money but he is moving back to Poland from April. 
  • The other income is child benefit for two kids
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