Finally doing it

user_21

Hi all, I've been reading bits and pieces on this forum the last few days and it seems you advise to create a post before doing anything tangible:

So, long story short I've racked up lots of unsecured debt over the years (mostly loans and CCs) Somewhere around the £50-£60k mark. It's that bad I don't even know the exact figure!
Basically I've put my head in the sand on these since late 2018 when it all got too much and stopped paying/stopped answering calls and letters etc Probably not relevant but I went through a bad time around then, marriage broke down, mental health took a dive and I basically just buried everything. I've since found out that at least two of those debts have become CCJs. (I didn't get any paperwork as I moved house a couple of times and didn't contact them to say I'd moved). 

It's now 2023 and I'm mentally in a much better place, new relationship going well and everything much more stable.... but with the caveat of this huge debt looming and coming to get me one day.
A mate of mine (that I used to live with) messaged me this week to say he'd had debt collectors at the door looking for me. This has been a bit of a wake up call as I'm sure it's now only a matter of time before they find my new address and start banging on the door. 

So this week (payday) I will be putting in my bankruptcy application and facing the music. 

I have filled out the whole form with as much information as I know. and filled out my incomings and outgoings. One question I have, are the outgoings on that form for JUST my half of the bills or for the household as a whole? I've assumed the latter.

I'm really concerned that it looks on paper like I have plenty of disposable income each month (though it doesn't feel like that) and I guess the OR is basically going to take all of it? (I appreciate i've technically been riding a wave for the last few years by not paying towards any of my debts - I'm not looking for sympathy, just want to make sure I have enough money to support my family/run a beaten up car/buy christmas presents/live some sort of normal life for the next 3 years whilst I'm paying the OR)

Can someone post me the link to the income/outgoings form I can share on here to take a look please? I want to make sure I make the most of the figures I'm presenting, so having someone look at it that knows what is and isn't acceptable would be really appreciated. 

I'll update the thread once I've got that link. 

Any help or advice right now would really be appreciated. I'm bracing myself for a tough 3 years, but equally looking forward to getting this considerable weight off my shoulders. 

Thanks

[PS] Just to add that I have applied for a basic CO-OP account which seems to be going through fine. Just in case my FirstDirect and Natwest accounts get closed because of all this.

I'll also add the fact that I don't own any assets other than an old car I use for work.

fatbelly

It sounds like what you are doing is sensible. Clean start and all that.

Soa calclator is here

https://www.lemonfool.co.uk/financecalculators/soa.php

Please format for mse

sourcrates

A slight word of caution here, if you stopped paying these debts in late 2018, there will only be a year or so to go before the one`s that did not have legal action taken against them, will become statute barred.

Now you have managed to stay under the radar for this long, most debt collectors operate out of call centres, they don`t knock on doors, only a few still do that, and they don`t have any more power than you or I do, you could still wait this out.

If you do go ahead, then make sure you budget in excess of what you use, the allowances are quite generous in bankruptcy anyway, the less disposable income you have the better, anything over £20 per month might attract an IPA for up to 3 years.

user_21

sourcrates said:

A slight word of caution here, if you stopped paying these debts in late 2018, there will only be a year or so to go before the one`s that did not have legal action taken against them, will become statute barred.

Now you have managed to stay under the radar for this long, most debt collectors operate out of call centres, they don`t knock on doors, only a few still do that, and they don`t have any more power than you or I do, you could still wait this out.

If you do go ahead, then make sure you budget in excess of what you use, the allowances are quite generous in bankruptcy anyway, the less disposable income you have the better, anything over £20 per month might attract an IPA for up to 3 years.

That had crossed my mind and was partly in the back of my head when I was ignoring them for so long: thinking I could give it 6 years then they all might disappear. However, I'm guessing the one (possibly two) that have since become CCJs this year will have reset the clock. Some of the other non-CCJ debts have also been passed from original creditor, to debt collection agency, to other debt collection agencies and sometimes back to the original creditor - does this affect the 6 year clock?

I'm guessing (though I don't know for sure) that the bailiff's knocking at the door of my old house are probably chasing one of the CCJ debts. It's this that is now forcing my hand as I don't think I can deal with 5-6 years of bailiffs at the door when they work out my current address.

sourcrates

Legal action invalidates the limitation act, you can no longer use that as a defence.

But you can sell a debt, with no CCJ attached, as many times as you like, it won`t affect the limitation period one bit.

Were they bailiffs ? how much was the debt for ? may just have been common a garden debt collectors.

I can understand your need for closure on this though.

user_21

Here is what I think is our combined household outgoings.

I haven't bothered entering all the creditors as there are too many. Just know it's around £60k from CCs and (unsecured) loans and most of them now sit with debt collectors.

I've put "rent" but it's actually the mortage (which is fully in my partners name - it's her house).

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

Monthly Income Details[/b]

Monthly income after tax................ 3208

Partners monthly income after tax....... 1817

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 5025[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 475

Management charge (leasehold property).. 0

Council tax............................. 175

Electricity............................. 80

Gas..................................... 146

Oil..................................... 0

Water rates............................. 57

Telephone (land line)................... 0

Mobile phone............................ 0

TV Licence.............................. 14

Satellite/Cable TV...................... 13

Internet Services....................... 23

Groceries etc. ......................... 700

Clothing................................ 80

Petrol/diesel........................... 130

Road tax................................ 68

Car Insurance........................... 85

Car maintenance (including MOT)......... 58

Car parking............................. 20

Other travel............................ 20

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 67

Buildings insurance..................... 15

Contents insurance...................... 19

Life assurance ......................... 22

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50

Haircuts................................ 75

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

(Unnamed monthly expense)............... 0

DFS Sofa Payment........................ 30

Google Cloud Storage.................... 8

Kids Gaming............................. 22

Kids Clubs.............................. 33

Union................................... 16

Uniforms/school trips/pocket money...... 25

Smoking................................. 120

Hobbies/Leisure/Sport................... 190

Laundry/Cleaning........................ 5

Child Maintenance....................... 650

Meals at work........................... 25

Cigarettes.............................. 0

Alcohol................................. 90

Toiletries.............................. 60

Spotify Music........................... 17

Streaming Services...................... 24[b]

Total monthly expenses.................. 3727[/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.................... 5,025

Expenses (including HP & secured debts). 3,727

Available for debt repayments........... 1,298

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 1,298[/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.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

user_21

Another question I have is around the timeline:

If I submit my application tomorrow, how long until it is accepted? Then how long until the interview and how long before I make my first IPA payment? 

The other half is suggesting we hold out until after Christmas because A) the mortgage will go up massively in December anyway, and B ) I get a Christmas bonus 

luvchocolate

Quick reply..doubt smoking costs will be allowed if necessary will have to come from food budget which is high same with alcohol 
Usually approved within a few days...depends on how busy the examiners are...I didn't have an IPA so no idea Sorry 

fatbelly

You should consider having your partner not engage with the process. They will then have to assume a 50:50 split of expenses

As things stand the expenses will be divided according to income.

I think this needs a bit more consideration and i wouldn't rush into it

user_21

Sorry, I misunderstood that but think I understand now. If she refuses to cooperate the OS will.just assume a 50/50 split? (Tbh I assumed they'd just go 50/50 anyway!) you live and learn. Will the OS contact her himself or do it through me?

user_21

Another question - I'm just about to renew my gym membership (£40) a month. I consider it essential for mental health/keeping me on the straight and narrow. Will the OR see it the same way?