SOA help

RAS · 12 July at 8:41PM

Justme4 said:

Entertainment would cover 1 day out a month with a meal for us? 5 of us with a meal and something for them… maybe a day with their friends too?

I’ll look into contents … the girls will not wear trousers, my son is so rough and tumble and constantly gets holes in his knees in his clothes and ruins his shoes/trainers and the guest girls always gets holes in her leggings.. also when it comes to needing winter coats and clothes and then covers 4 school uniforms with bags and shoes ect.. I’m not going to be able to just go pull it all out like I have before so need to know the funds are there especially for big purchases.

This may be disjointed but really illustrates the need for you to get on top of your budget.

You have 4 kids who need to have the appropriate gear to go back to school and have clothing to face the winter.

Right now you need to sit down with each of them and list what they need, not want, need, before term start and the cold wet weather hits.

Then you cost it.

Meantime there are no days out as a family or with friends. You simply don't have the flexibility of getting credit or a bail out from others.

Does school offer a uniform exchange? Can any of the kids inherit clothing too small for another, even if only as a back-up in case they need something to wear next day? Can any of the clothes be bought using the supermarket bundles. Is there anything in the local chazzers that meets the generic requirements. I assume you will need a pair of acceptable shoes for each in September.

Once you know how much you need to get the kids ready for school, you can look at the clothing and ents budgets and see what is left over.

At that point you can discuss days out with the kids, with what's left over, not before.

Your son needs to know that if he gets holes in his clothes, they will be repaired (or not) and if he scuffs his shoes, he will be wearing them. And you have to go with it, perhaps pre-warning school of the hard line.

And your daughters need to know that they will be wearing tights with runs and holes, or bare legs. We used to repair stockings and tights but there were at least threads you could buy that vaguely matched the tones. A good number of our tights were fancy colours bought for a pittance and re-dyed fetching shades of chestnut.

ManyWays · 12 July at 9:46PM

The expenses all look ok ish for a DRO to me, @fatbelly do you agree?
But at some points your kids have to think about trade offs; kickboxing may mean they cant do something else.

Justme4 · 13 July at 7:53AM

ManyWays said:

The expenses all look ok ish for a DRO to me, @fatbelly do you agree?
But at some points your kids have to think about trade offs; kickboxing may mean they cant do something else.

If it ends up been BR would those figures still be reasonable do you think?

RAS · 13 July at 9:09AM

Why go BR, other than for the car?

Justme4 · 13 July at 9:25AM

RAS said:

Why go BR, other than for the car?

Sorry I might be misunderstanding you about the car? , Id be over the moon to be offered a DRO but I’m only just under the threshold.. and not making payments this month could push me over? Due to interest been added possibly?

fatbelly · 13 July at 9:38AM

Justme4 said:

[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......... 4
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 1056
Partners monthly income after tax....... 0
Benefits................................ 1706
Other income............................ 0[b]
Total monthly income.................... 2762[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 120
Gas..................................... 126
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 15
Satellite/Cable TV...................... 20
Internet Services....................... 24
Groceries etc. ......................... 800
Clothing................................ 150
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 50
Car maintenance (including MOT)......... 60
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 70
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 50
Entertainment........................... 100
Holiday................................. 80
Emergency fund.......................... 50
School trips or costs .................. 30[b]
Total monthly expenses.................. 2761[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1
Other assets............................ 0[b]
Total Assets............................ 1[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
MBNA ..........................6665......65........0
Klarna ........................600.......50........0
HSBC ..........................3324......80........0
Lendable.......................22187.....390.......0
Zopa...........................6221.73...135.......0
Very...........................788.99....0.........0
Virgin.........................5870......95........0
Lloyds.........................360.63....40........0
Paypal.........................2678.01...50........0[b]
Total unsecured debts..........48695.36..905.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,762
Expenses (including HP & secured debts). 2,761
Available for debt repayments........... 1
Monthly UNsecured debt repayments....... 905[b]
Amount short for making debt repayments. -904[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 1
Total HP & Secured debt................. -0
Total Unsecured debt.................... -48,695.36[b]
Net Assets.............................. -48,694.36[/b]

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

This looks like the sort of budget that would work for a DRO. However, I think you have made a mistake with the car value. Just a reminder that it needs to be <£4000.

I did note some misinformation earlier. To be clear the valuation needs to be done according to

https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers#vehicles

If the value is higher then you do not qualify

Justme4 · 13 July at 9:45AM

Thank you the car is worth about 6-7k going of Parker’s… so that’s the issue for me and I don’t know if I’m allowed to try get round this? I know I don’t want to do anything more than the mess ups iv already done .. to pee the OR off x

RAS · 13 July at 11:16AM

The bankruptcy allowance for cars is lower than for a DRO, I believe. @fatbelly can confirm.

I'd suggest you start by working out the cost of getting everyone to school and work by public transport as you'd also have to justify the monthly costs. Probably a weekly or monthly card that allows additional journeys.

fatbelly · 13 July at 12:10PM

That was true. I think I received notification at work that they were bringing it into line.

Yes, June last year

https://www.gov.uk/guidance/technical-guidance-for-official-receivers/updates

You are allowed to get two independent reliable estimates of car value if Parkers doesn't work but if you are genuinely above that then I guess your options are

1. Carry on until depreciation drops the value below 4k. Though in your case your debts will probably go above 50k unless you can get them down with affordability complaints or something
2. Sell, and buy something cheaper. You can carry cash/other assets up to 2k in a DRO
3. Just go for bankruptcy and let the chips fall where they may. I don't think I recommend this option.

I haven't been following the whole thread and there is a lot to read. But I can see that you are getting good advice and help.

Justme4 · 13 July at 12:28PM

RAS said:

The bankruptcy allowance for cars is lower than for a DRO, I believe. @fatbelly can confirm.

I'd suggest you start by working out the cost of getting everyone to school and work by public transport as you'd also have to justify the monthly costs. Probably a weekly or monthly card that allows additional journeys.

My mental health would not allow me to get on public transport, hence why I have a friend who would borrow me a car if needed.

SOA help

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