About to go Bankrupt. Need help with SOA please

binksy3024

Hi everyone,

Just for a bit of backstory. I had a business and a decent paying job in 2020 but after a series of bad money management and poor investments, it's finally come to bite me.

My business owes around 52k (limited company) and my total personal debts tot up to £42,800.

I have been on a DMP for a number of months but due to tightness of budget, it's going to take 11 years to pay it off.

I'm in a unique situation where my other half (not married) is very good with her finances and owns multiple properties. We rent and live in a nice place where she pays the rent (£2750 a month) and I grab bills and groceries.

I have only just landed a job that pays me £1612 a month so things have been tight.

I'm aware things might be tight for the next few years for myself but want to finally be free of the money worries.

Please see my SOA below. Not sure if it's right as I've included my partner's income (rough estimate as not sure what she actually takes home) as well as car (19k value) and also the monthly PCP payment (£367) Which she pays for.

Thanks for reading and any help will be really appreciated.

[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......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1612

Partners monthly income after tax....... 3200

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

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

Total monthly income.................... 4812[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 2750

Management charge (leasehold property).. 0

Council tax............................. 241

Electricity............................. 200

Gas..................................... 0

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

Water rates............................. 48

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

Mobile phone............................ 65

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 40

Groceries etc. ......................... 400

Clothing................................ 40

Petrol/diesel........................... 100

Road tax................................ 0

Car Insurance........................... 59

Car maintenance (including MOT)......... 10

Car parking............................. 10

Other travel............................ 367

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

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

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........................... 40

Holiday................................. 20

Emergency fund.......................... 20[b]

Total monthly expenses.................. 4460[/b]

[b]

Assets[/b]

Cash.................................... 19000

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 1

Other assets............................ 0[b]

Total Assets............................ 19001[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

PRA GROUP (UK) LTD.............18060.7...0.........0

PRA GROUP (UK) LTD.............12412.....0.........0

118 118 Money..................7483.01...0.........0

Bumper International...........289.24....0.........0

Halifax Overdraft..............1921.6....0.........0

V12 Retail Finance.............2714.92...0.........0[b]

Total unsecured debts..........42881.47..0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,812

Expenses (including HP & secured debts). 4,460

Available for debt repayments........... 352

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

Amount left after debt repayments....... 352[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 19,001

Total HP & Secured debt................. -0

Total Unsecured debt.................... -42,881.47[b]

Net Assets.............................. -23,880.47[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

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

stu12345_2

why you include your wifes car, ( and if its on a PCP) then she doesnt own , she is merely hiring it monthly, hence it isnt an asset and her income?.--- she isnt going bankrupt, . 
 its your assets, you list .I assume its only you going bankrupt. then your SOA will be your wages, less half of the joint liable  household bills. gas, water,  then your own individual personal costs such as leisure,food, haircuts, entertainment.

you also state you rent, is the tenancy in her name only? then you arent forced to pay anything for rent ? and isnt an expenditure, unless its in both names? plus if it is in both names, the tenancy, are you allowed to continue to rent if you go bankrupt, does the tenancy allow it? I assume its a private landlord
it seems you have listed a SAO for both as if both are going on a DMP or both going bankrupt.

unless i am missing the whole picture here, someone else can advise

binksy3024

So in terms of the car, it's on PCP in her name. I use the car and pay towards running costs. Charging it, insurance for example. The tenancy agreement has both of us on it and potentially has bankruptcy being the grounds for termination of the AST but it's unlikely, given the financial position/relationship with our landlord.

stu12345_2

I see .but she isn't going bankrupt.hence only list your assets if any and your bills. I'm not sure you can list running costs of car if it isn't in your name.id redo the soa and only list your assets and your expenses that you have to pay and can prove it justify you pay and forget about your partner's wages.could you move to a cheaper rental and do the dmp and clear it much faster.as a dmp won't really affect a tenancy agreement.but bankruptcy will

JCS1

stu12345_2 said:

I see .but she isn't going bankrupt.hence only list your assets if any and your bills. I'm not sure you can list running costs of car if it isn't in your name.id redo the soa and only list your assets and your expenses that you have to pay and can prove it justify you pay and forget about your partner's wages.could you move to a cheaper rental and do the dmp and clear it much faster.as a dmp won't really affect a tenancy agreement.but bankruptcy will

This is not technically correct.

The forms ask for household income and outgoings.

JCS1

The cash of 19k, whose account is it in? It may be considered an asset.

I think some categories could be increased.

You do not have to declare partners income, bit if you don't the OR will assume 50% split (I think, it's been a while).

See what a few other people think

HampshireH

I may be wrong but this SOA seems incorrect 

If your partner only earns £3200 (I know you said it's roughly) then she is left with less that £300 a month in spending Money after rent and her car.

That seems a huge commitment against a comparably low income. 

No contents insurance - I recommend getting this.

All your debts show as interest free with no repayments being made currently is that right?

binksy3024

So as I said, it’s rough. She is an entrepreneur and generates an insane amount of cash just like that. I think that income would be purely rental income from her properties.

She has the PCP in her name for the car. I’m just a named driver

binksy3024

And as for the payments, I’m currently on a DMP where interest is frozen. It’s currently a fixed monthly payment of £321 which would take 11 years to clear. Also have HMRC debt coming out at 200 a month for next 12-24 months

stu12345_2

you state cash of £19,000, or is it the car value of £19,000, if its the car, your partners car, its on pcp and not an asset. which is leased and will not need to be sold as she isnt bankrupt, or if its cash is it her savings only it wont need to be touched by bankruptcy.
 as for listing your partners income, this will decide how much you may have to make if an income payments order( which may last 3 years)

see example

https://www.purnells.co.uk/bankruptcy-and-ivas/income-and-expenditure/case-study-2

binksy3024

Thanks for this. Yeah I need to work out what a true 50:50 split would be. I spoke to her and her income is more like 100k for the year