Cabot and Mortimer Clarke THREAD CLOSED

exponential

The joint mortgage will also protect my home/

Grumpelstiltskin

OK So let your wife be the director, how does that make things any better if the business is not making enough money to pay either you or your wife a salary?

exponential

https://forums.moneysavingexpert.com/discussion/comment/81932109#Comment_81932109

Well, the long-term plan, as with any business, is to grow and become profitable. I'm confident that, given a bit more time, we can achieve this goal. The business earns enough to pay us both a salary because I am able to pay our bills which generally, run at around £3500 a month. The only difference at the moment is that money is taken from the business in the form of dividends instead of a PAYE salary.

I think that, over time, the DRA's will become bored of trying to recover money from a person who earns only minimum wage and maybe, they'll either write some if not all of them off (optimistic I know) or offer much reduced balances.

At the end of the day, I am screwed either way really as regardless of where I earn money from, my outgoings will not change so I would rather be able to pay my bills in full control of how and when I work than give it up and go work for someone else who will then call the shots and dictate to me where and when I work.

It's messy I know but I would rather keep fighting the good fight than give up the business I have spent the last 5 years cultivating and nurturing.

ManyWays

they will be able to sting me with an attachment of earnings order

In my experience as a debt adviser, those are very rare, especially if you are making any payments to the debts. Much more rare than charging orders on a house.

I am beginning to feel like a broken record, but PLEASE post a complete SOA.

exponential

https://forums.moneysavingexpert.com/discussion/comment/81932399#Comment_81932399

I promise I'll do it tomorrow. I've even printed out my bank statement so it will be a fully up to date version.
Likely early afternoon.

Appreciate your input, thank you. 🙂

exponential

@ManyWays See below - Updated SoA

In the income section, I put myself and wife to be on minimum wage as this is how the structure of the business will be created in the next month or two but you can take that as being what I draw from the business as needed.
Funnily enough, after filling out the SoA, it worked out to be almost exactly our true situation anyway.

exponential

[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......... 2
Number of cars owned.................... 2[b]

Monthly Income Details[/b]
Monthly income after tax................ 1879.51
Partners monthly income after tax....... 1879.51
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3759.02[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 1250
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 4.16
Council tax............................. 202
Electricity............................. 160
Gas..................................... 120
Oil..................................... 0
Water rates............................. 76.8
Telephone (land line)................... 15
Mobile phone............................ 50
TV Licence.............................. 15
Satellite/Cable TV...................... 60
Internet Services....................... 50
Groceries etc. ......................... 800
Clothing................................ 40
Petrol/diesel........................... 350
Road tax................................ 50
Car Insurance........................... 160
Car maintenance (including MOT)......... 50
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 60
Contents insurance...................... 60
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 30
Emergency fund.......................... 10[b]
Total monthly expenses.................. 3782.96[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 217000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0[b]
Total Assets............................ 217500[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 166026...(1250).....8.49[b]
Total secured & HP debts...... 166026....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Cabot - Fluid..................2681.2....0.........0
Cabot - Marbles................5737.45...0.........0
Cabot - Halifax................6050.42...0.........0
Lowell - Lloyds Bank...........16012.2...0.........0
Lowell - Capital One...........7804.2....0.........0
Lowell - Virgin Money..........7448.09...0.........0
Lowell - Lloyds Group..........4723.96...0.........0
Lowell - Lloyds Group..........533.58....0.........0
Lowell - Lloyds Group..........530.62....0.........0
Link - BoS.....................3635.38...0.........0[b]
Total unsecured debts..........55157.1...0.........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,759.02
Expenses (including HP & secured debts). 3,782.96
Available for debt repayments........... -23.94
Monthly UNsecured debt repayments....... 0[b]
Amount short for making debt repayments. -23.94[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 217,500
Total HP & Secured debt................. -166,026
Total Unsecured debt.................... -55,157.1[b]
Net Assets.............................. -3,683.1[/b]

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

exponential

It's actually quite interesting doing these SoA's as it forces you to take stock of your situation.

It's quite ironic that the equity in our home almost exactly matches the unsecured debt amounts but, even if we could release that equity, which we can't because of our income and credit-worthiness, it would increase our monthly mortgage payments by around £700 a month.
This would put us into real financial difficulty and result in the loss of our home.
We would be on the streets.

Grumpelstiltskin

So you are spending £650 a month on a car that is worth £500?

£120 a month on buildings and contents insurance, what are you insuring a castle?

No APRs on any debts?

exponential

https://forums.moneysavingexpert.com/discussion/comment/81932713#Comment_81932713

What are you talking about?

The car's value has no relevance here at all. There are two vehicles, my wife's car which is a 2009 2 litre diesel (which we can't afford to replace) and my work van (which is class S write off) which is critical for work.
It could be a pair of Bugatti Veyron's and it still wouldn't make a blind bit of difference.
I don't know if you've noticed but the cost at the pumps has gone through the roof as has insurance and the like.

Yes, that's what we pay a month on home insurance, again, your opinion has no relevance at all.
It's what we pay and that's that.

No interest as all debts have defaulted.