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In a Real Financial Mess & Don’t Know What to do or How to Cope

2

Comments

  • Arrianna
    Arrianna Posts: 29 Forumite
    Second Anniversary 10 Posts
    sourcrates said:
    Arrianna said:
    Hi HampshireH, 
    Thank you for your reply. Sorry not great with acronyms what is a SOA?
    SOA - Statement of affairs. Basically your income and expenditure, so we can determine what your disposable income is after all essential payments have been made.
    Thanks for that! Is there template I can use on this site? If so can you send me the link and I will fill it out ASAP
  • ManyWays
    ManyWays Posts: 1,451 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    The SOA template https://www.lemonfool.co.uk/financecalculators/soa.php and there is a button to select "format for MSE" so you can paste it into here

    In addition to this, I suggest you talk to Business Debtline https://www.businessdebtline.org/ tomorrow, they cover business and personal debts for the self employed.

    For a mortgage possession hearing the key is usually to be able to present a proposal with an income and expenditure statement to back it up that will repay the arrears within the life of the mortgage (you may hear this called "the Norgan rule") and I hope Business Debtline can help you come up with this. 

    In the meanwhile I suggest you cancel all payments to credit cards and any other non priority debts (you haven't mentioned car finance, that is a priority) and tell the lenders that you have a mortgage possession hearing in October and are taking advice from Business Debtline, so you would like them to stop adding any interest of charges until your mortgage is sorted and you can come up with a plan for your unsecured debts. 
  • fatbelly
    fatbelly Posts: 23,083 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Bear in mind the solicitor ( and the low-paid rep you meet in court) will have the instruction to obtain a 28-day PO.

    If you want something different it is the judge that you will have to convince, which is why you need solid numbers that add up.

    Don't be offended if the solicitors want to argue against you. It's their job.

  • Arrianna
    Arrianna Posts: 29 Forumite
    Second Anniversary 10 Posts
    edited 22 September 2024 at 9:16PM
    font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax... (NB this varies is an average over the last 4 months - self employed)............. 1441
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income................... 1441[/b][b]

    Monthly Expense Details[/b]
    Mortgage..(includes contractual amount + additional payment towards arrears).............................. 841.2
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 100
    Council tax............................. 98
    Electricity............................. 40
    Gas.....included in management charge................................ 0
    Oil......do not use............................... 0
    Water rates............................. 30
    Telephone (land line)....included in internet cost............... 0
    Mobile phone............................ 5
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 24
    Groceries etc. ......................... 90
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 60
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 35
    Buildings insurance..................... 1
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 6
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 15
    Holiday................................. 0
    Emergency fund.......................... 0
    Toiletries ............................. 40
    Work Expenses....this has been reduced....................... 50[b]
    Total monthly expenses.................. 1435.2[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)...(NB this is an estimate for similar properties in my area, however I’m aware that asset value may be less on mortgage agreement and will most probable sell for less if go for quick sell.................. 240000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 240000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 23574....(841.2)....6.55[b]
    Total secured & HP debts...... 23574.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit card ...................1519......1.........0
    Credit card....................1546......1.........0
    Credit card....................695.......1.........0
    Credit card....................6595......1.........24.8[b]
    Total unsecured debts..........10355.....4.........-  [/b]

     
    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,441
    Expenses (including HP & secured debts). 1,435.2
    Available for debt repayments........... 5.8
    Monthly UNsecured debt repayments....... 4[b]
    Amount left after debt repayments....... 1.8[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 240,000
    Total HP & Secured debt................. -23,574
    Total Unsecured debt.................... -10,355[b]
    Net Assets.............................. 206,071[/b]
  • Arrianna
    Arrianna Posts: 29 Forumite
    Second Anniversary 10 Posts
    edited 22 September 2024 at 9:17PM
    HampshireH said:
    You haven't given any numbers. How much are your arrears? How much are you paying on your credit cards a month.

    You've probably done multiple SOAs by now but put one on here people can advise.

    However ultimately unless your 20 hours a week self employment was going to be lucrative it isn't sustainable. 

    There are jobs out there (we don't know where you are or what your skills are) there is always hospitality work, warehouse work, shop work etc  even if you use it as a stop gap to something you would prefer.


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

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax... (NB this varies is an average over the last 4 months - self employed)............. 1441
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income................... 1441[/b][b]

    Monthly Expense Details[/b]
    Mortgage..(includes contractual amount + additional payment towards arrears).............................. 841.2
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 100
    Council tax............................. 98
    Electricity............................. 40
    Gas.....included in management charge................................ 0
    Oil......do not use............................... 0
    Water rates............................. 30
    Telephone (land line)....included in internet cost............... 0
    Mobile phone............................ 5
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 24
    Groceries etc. ......................... 90
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 60
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 35
    Buildings insurance..................... 1
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 6
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 15
    Holiday................................. 0
    Emergency fund.......................... 0
    Toiletries ............................. 40
    Work Expenses....this has been reduced....................... 50[b]
    Total monthly expenses.................. 1435.2[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)...(NB this is an estimate for similar properties in my area, however I’m aware that asset value may be less on mortgage agreement and will most probable sell for less if go for quick sell.................. 240000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 240000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 23574....(841.2)....6.55[b]
    Total secured & HP debts...... 23574.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit card ...................1519......1.........0
    Credit card....................1546......1.........0
    Credit card....................695.......1.........0
    Credit card....................6595......1.........24.8[b]
    Total unsecured debts..........10355.....4.........-  [/b]

     
    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,441
    Expenses (including HP & secured debts). 1,435.2
    Available for debt repayments........... 5.8
    Monthly UNsecured debt repayments....... 4[b]
    Amount left after debt repayments....... 1.8[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 240,000
    Total HP & Secured debt................. -23,574
    Total Unsecured debt.................... -10,355[b]
    Net Assets.............................. 206,071[/b]
  • ManyWays
    ManyWays Posts: 1,451 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    Your property is worth about 240,000 and your mortgage is less than 24,000? How many years remain on your mortgage, how large are the arrears and are you including those in the balance of the mortgage remaining? how much of the £841 is the contractual amount and how much is a payment towards the arrears? 

    The management charge, how large is that a month and how large are the current arrears?
  • Arrianna
    Arrianna Posts: 29 Forumite
    Second Anniversary 10 Posts
    edited 22 September 2024 at 9:21PM
    ManyWays said:
    Your property is worth about 240,000 and your mortgage is less than 24,000? How many years remain on your mortgage, how large are the arrears and are you including those in the balance of the mortgage remaining? how much of the £841 is the contractual amount and how much is a payment towards the arrears? 

    The management charge, how large is that a month and how large are the current arrears?
    Yes my property is worth ~ £240,000 I only have 2 years 7 months left on my mortgage agreement 
    The arrears are roughly £3775.75 ( made up as follows 2/08/24 arrears = £4045.17. I’ve paid £269.42 towards the arrears since 21/08/24)
    yes I have included the arrears in the balance of the mortgage 
    contractual amount = £707.02
    The arrears I’m paying are  £134.21

  • ManyWays
    ManyWays Posts: 1,451 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    OK, you also need to talk to Business Debtline about the service charge issue, as typically a property can also be repossessed for that.
  • Arrianna
    Arrianna Posts: 29 Forumite
    Second Anniversary 10 Posts
    edited 22 September 2024 at 5:55PM
    ManyWays said:
    OK, you also need to talk to Business Debtline about the service charge issue, as typically a property can also be repossessed for that.
    Ok I see can you explain a bit more as to why - thanks… The service charges are as a Leaseholder not to the bank
  • ManyWays
    ManyWays Posts: 1,451 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    See https://england.shelter.org.uk/professional_resources/legal/home_ownership/leasehold_and_commonhold/repossession_of_leasehold_property#preventing-forfeiture 

    I am not saying this will happen but the mortgage lender may be alarmed at the service arrears.
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