bankruptcy and living expenses?

pug_in_a_bed

I am a recently discharged bankrupt, so I do have experience. You need to make an extensive list of what you're spending on living expenses and then decide if its reasonable. I don't think anyone can give you actual figures because everyone differs. For instance, when I declared, I lived in a room in a big house. I didn't have a tv, so no licence expenses. I didn't have any dependents, or any medical conditions - just to pick an expense out of the air. Look at your expenses now, if you want more help you could post them here. Do your basic costs first, ie your bills and your shopping for example, then look at leisure. Just wondering, do you actually have your forms and such, so you know what you need to include?

Just found my papers.
Some examples: for clothing I put £20 per month (not every month)
for travel I put £50 (I had a travel card so knew in advance)
Housekeeping for me was £100 per month (that included food and cleaning stuff)

There isn't an easy way to do it - there are no figures actually available, the OR judges each circumstance individually because everyone has individual needs. For instance, havnig a child might mean you need to include more in for leisure (which might include birthdays for example).

I was earning little at the time. But as you can see, some people might say thats not enough - but then they would be in a different situ. It was just about right for me, and used up my wages.

Go back to 1313's post and find out all you are paying now for these things. You'll have to do it at some point for the form and its the only way you'll figure it out. I can understand that you are worried about it, but if you're sensible, the OR will be fine with you.

lifesachallenge

Go through the Martins budget planner and enter exact figure that you spend - and use that.

Believe it or not the receivers are generally quite generous with cost of living - provided that you do not expect a "champagne" lifestyle.
Money for new clothes (work) is expected -
children are not expected to suffer so you should allow whatever they do cost you.
smoking is permitted as is social life
Provided you do not live inner city with good transport, a car is allowed - unless it is particularly valuable (£10k +)
Basically it is th same as any negotiation, start at the top, and they will ask / tell you what you have to adjust.
Bearing in mind once you have it agreed it is difficult to change so start high - and then they will tell you what they expect.
good luck

pug_in_a_bed

LIfesachallenge is right - the OR is not going to throw a wobbler if they see your form and your expenses are a bit too high. They will just make suggestions as to how to ammend it.

The worst that could happen is that the OR would decide you have to make a payment during the bankruptcy - this usually happens if they look at your sums and see you have money left over after paying all these expenses. But if you're canny now and really think about what you'll need then you'll be fine.

mask_3

thanks people, I'll do some figures and post them up soon

ukboy

Hi, have recently had my OR telephone conversation,it lasted about 10 mins and they could not be any more helpful i slightly adjusted the figures in my favour but i did not go overboard with it and i advise you not to,at the end he came up with a figure of which to pay back which i said would leave me a little short each month to which he eventually agreed so now i have an agreement where they just take my income tax money each month and as his words were no one will lose out in a sense,i fretted against bankruptcy but all in all it was the best i can do if you have no way out through no fault of your own then go for it !!

1313

There is still the more serious problem of the house!! OK it is not in your name, and the missus is paying for it herself. But if you were to divorce, you would have an entitlement to some of the property. So I would assume that the OR could also take a similar view!!

So is all of the property safe? I don't think so!

jen_jen_2

i dont think the OR can have the property, its in OH name and not yours therefore it is not your asset, your creditors cannot ask for it and an OR will not ask for it.

for an OR to try to get half the property and force a sale etc etc will cost more than the assest (half a house) the OH does not want to run up costs on a bankruptcy that is never going to be paid in full, and your OH has a good defense, she pays all the mortgage!!

I think the OR will allow you expenses that are essential for you to maintain a reasonable standard of living, i wouldnt worry too much and just get the figures you actually spend, the OR's are quite clever and if your trying to "get away" with something they will spot it. Just be open and honest and you will find they are the same.

You may have to get a cheaper car though and you can only have a car if it is essential for work.