My SOA...Your thoughts appreciated

circus_48

NO!

Couldn't give a monkeys whether we keep the house or not. Just want rid of this worry! I am in the privilidged position whereby I can move in to military quarters.

Max, you mention a bumpy BR????? whats an IPA???

Sunk

circus_48 wrote: »

The life assurance is life insurance and worth nothing...unles we die!!


Circus

Ah...not quite.
I have just sent my policy off to OR, they are looking at the surrender value.
I can buy it back for £50.00.
Trouble is it matures this November & I'm due £900.00, sods law, I know where that will go after paying into it for 15years.


Look at this link:
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part4/part_4.htm

Horace

tigerfeet2006 wrote: »

Hi Horace,

This is an I&E being prepared for bankruptcy not a DFW SOA and they are completly different beasts with different priorities.

Soz Tigerfeet - I misread it and thought that it had been posted in the main bit of DFW and not BR. Thanks for letting me know and I shall watch and learn:D

peachyprice

Circus, you carry on paying the secured loan as long as you stay in the house, if you don't they loan company will repossess

Scarlett.1974

circus_48 wrote: »

NO!

Couldn't give a monkeys whether we keep the house or not. Just want rid of this worry! I am in the privilidged position whereby I can move in to military quarters.

Max, you mention a bumpy BR????? whats an IPA???

Okay

If you do decide that BR is the option for you then you can stop paying your mortgage and loan and use that money for your BR fees and moving costs.

You can 'give the house back' to the mortgage co. (voluntary surrender) or you allow them to reposess through the courts (this is what we have just done). Any shortfall due to negative equity will be covered in your BR.

You are lucky to be in the position of being able to get military housing - would I be right in assuming the rent would be quite low? You could be looking at a pretty hefty IPA due to your income.

Any other questions, do shout up

december

IPA stands for Income Payment Arrangement. The official receiver looks at your I&E and decides whether or not it is reasonable. They then disallow any items which they feel are unreasonable and depending on how much surplus is left you pay that amount to your creditors, ie upto £99 a month you don't pay anything back, and over that there is a sliding scale which goes up to 75% of your surplus income

December

peachyprice

circus_48 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2072.17
Partners monthly income after tax....... 550 contribution only
Benefits................................ 0
Other income............................ 114.99
Total monthly income.................... 2737.16

Monthly Expense Details
Mortgage................................ 608.28 see below
Secured loan repayments................. 650 ditto
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 118
Electricity............................. 35
Gas..................................... 39
Oil..................................... 20
Water rates............................. 45.49
Telephone (land line)................... 0 No Landline? Add £25
Mobile phone............................ 36
TV Licence.............................. 9.95 £ 11.12 pm
Satellite/Cable TV...................... 21 Won't be allowed, pay out of surplus
Internet Services....................... 17.99 Wont be allowed pay out of surplus
Groceries etc. ......................... 350
Clothing................................ 50 Up to 100
Petrol/diesel........................... 150 Up to 200
Road tax................................ 30
Car Insurance........................... 41.66
Car maintenance (including MOT)......... 80 Too high, £30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 55 What's this, school dinners? Activity eg swimming?
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 33.29
Contents insurance...................... 0 No contents?
Life assurance ......................... 90.49 If there's a surrender value OR will take it, otherwise it's very high, especially as if you die while BR the OR will get it.
Other insurance......................... 14.9
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 100 Not allowed
Holiday................................. 60 You might get to keep this if you ditch the other 2
Emergency fund.......................... 50 Not allowed
Total monthly expenses.................. 2791.05

Assets
Cash.................................... 500
House value (Gross)..................... 225000
Shares and bonds........................ 5500
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 236000

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 141000...(608.28)...5.19
Secured Debt.................. 77000....(650)......8
Total secured debts........... 218000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit card....................9000......150.......0
credit card....................4000......116.......0
credit card....................1400......60........14
Overdraft......................3100......150...... .20
loan...........................6500......229.6.... .8.9
Loan...........................13000.....187...... .14.9
Loan...........................13500.....291.1.... .10
Total unsecured debts..........50500.....1183.7....-

Monthly Budget Summary
Total monthly income.................... 2,737.16
Expenses (including secured debts)....... 2,791.05
Available for debt repayments........... -53.89
Monthly UNsecured debt repayments....... 1,183.7
Surplus(deficit if negative)............ -1,237.59

Personal Balance Sheet Summary
Total assets (things you own)........... 236,000
Total Secured debt...................... -218,000
Total Unsecured debt.................... -50,500
Personal net worth...................... -32,500

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Sorry, started to reply eariler but my pizza was ready.

If you intend to move out of the house now take off the mortgage and secured loan, but add rent. However if you're going to stay there for the next few months or want keep the house and can afford it you have to leave both the mortgage and S/L. Looking at the value of your house and the equity it's quite likely you'll get to keep it, in a years time when they'll want to sell it there's a good chance you'll either be in negative equity or be able to buy the BI for very little.

Other stuff I've added my tuppence worth.

circus_48

Hi and thanks for your comments and views.


How long will I have to pay the IPA for? Untill all debts are paid or until I am released by the OR.

maxmycardagain

ipa's are for a 3 year term

BR is for 12 months (less for an early discharge)

helppleasehelp

tigerfeet2006 wrote: »

Hi Horace,

This is an I&E being prepared for bankruptcy not a DFW SOA and they are completly different beasts with different priorities.

thanks, these was actually one of my questions that i put up on my tread.
now it is just working out the difference.