Need Some Advice - Updated with SOA

flis21

Hi All,

We are trying to get an appointment to go to CAB, but in the mean time I thought I would come on here for some advice.

A few years ago we got in a lot of financial trouble and ended up entering into an IVA, which failed after about 6 months as I became ill and had to give up my job, so we couldn't afford to pay it anymore. We weren't made bankrupt and only a couple of our creditors chased us for money, so we have been making small repayments to the creditors who chased us. We did write to all our other creditors, but only about half of them got back to us and we have been making payments to the ones who got back to us.

Now more and more of our creditors are coming out of the woodwork and threatening us, the companies who we have been repaying are on our backs to repay more and we can't afford to put up there repayments, particularly not as we are going to have to start making payments to the new companies. We have nearly £50,000 of unsecured debt and our current income is £1300 from my Husband's job, £440 (my maternity pay), £75 in child benefit and £80 in child tax credit. We are currently paying about £140 per month towards our debt, but we are finally coming to the conclusion that we are just never going to be able to pay it off and are going to be struggling and chased by creditors for the rest of our lives. We can't afford to pay the amounts they want and our household bills are just going up and up and I feel like we are drowning.

I am starting to think that we will have to go bankrupt. Unfortunately I have not got a lot of the paperwork, we have none of the old statements and I got rid of the IVA statements after that failed. We checked our experian report and that didn't have any of our debts on there and only showed my Husband as having had an IVA!!

Can anyone offer us any advice? It woud be greatly appreciated (I know you can't tell us exactly what to do, but some general advice would be gratefully received). Also if you need any more info about our situation please ask.

Thanks,
Flis

Toon_Dave

Hi Flis and Good morning.

Thanks for posting, Are you able to put up a full SOA with income and expenditure, try this link for an excellent calculator http://www.makesenseofcards.com/soacalc.html so that we can see what the exact levels are and if there is any advice we can offer you.

Also you said you are waiting to see or speak to the CAB have you tried the CCCS yet, there online form is excellent at offering some tailored solutions based on your circumstances - http://www.cccs.co.uk/

I wouldnt worry regarding the paperwork as anything etc that is missing or that the OR needs he can get from the companies involved, Also if you miss any companies from your BR paperwork (if thats what you decide) they can contact the OR direct and inform of their interest and creditor info.

If you could provide as much info as possible it would be a great help for you and us to offer you advice.

Dave.

flis21

Ok, I've been to that website and done an SOA. Please be kind!

There are 2 adults and one child in the house. We rent and we don't have a car. No assets of any kind, or savings. My maternity pay is due to end in August and the amount of benefits we get will go down by £40 at the end of the year when our baby turns 1. I have no idea how much the APRs are on the debts. I have only put payments in the ones that we are paying agreed amounts with the creditors. The other ones are currently in negotiation or have not contacted us. The amounts that we owe may be more to the companies who have not contacted us, as the ones that do contact us have all put charges on, making the debts higher. Any advice?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 440
Partners monthly income after tax....... 1300
Benefits................................ 155

Total monthly income.................... 1895[/b]

Monthly Expense Details

Rent.................................... 650
Council tax............................. 117
Electricity............................. 80

Water rates............................. 37.17
Telephone (land line)................... 35
Mobile phone............................ 20
TV Licence.............................. 11.37
Satellite/Cable TV...................... 17
Internet Services....................... 25
Groceries etc. ......................... 260
Clothing................................ 70
Other travel............................ 60

Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 15

Contents insurance...................... 14.43

Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 20
Tobacco................................. 60
Union Fees.............................. 13.27
Total monthly expenses.................. 1697.24

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
American Express...............5098......15........0
Capital One....................1711......5.05......0
Egg (credit Card)..............3107......9.16......0
Natwest........................1082......0.........0
Intelligent Finance............1396......0.........0
Halifax........................3710......10.94.....0
HSBC...........................6305......18.6......0
Egg............................3745......0.........0
Capital One....................5043......0.........0
Nationwide.....................2080......6.13......0
Morgan Stanley.................2558......0.........0
Intelligent Finance............1813......0.........0
HSBC (Credit Card).............1589......0.........0
HSBC (overdraft)...............1810......0.........0
Egg (loan).....................7902......23.31.....0
Total unsecured debts..........48949.....88.19.....-

Monthly Budget Summary
Total monthly income.................... 1,895
Expenses (including secured debts)....... 1,697.24
Available for debt repayments........... 197.76
Monthly UNsecured debt repayments....... 88.19
Surplus(deficit if negative)............ 109.57

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -48,949
Net Assets.............................. -48,949

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

flis21

Oh, we also are in deficit to BT for the phone bill and to EDF for the electricity. We owe BT about £160 and EDF about £300. I want to up the direct debits to them to get the amounts we owe them down, but obviously we can't do that in our current situation. The current amounts we are paying them are keeping the phone bill at the same level of deficit, but the electricity deficit is increasing with every bill.

Toon_Dave

Hi Flis, Thanks for posting that. Im gonna look at it for BR for you to see what you can claim for etc..may be different if you are looking to save money etc.

flis21 wrote: »

Ok, I've been to that website and done an SOA. Please be kind!

There are 2 adults and one child in the house. We rent and we don't have a car. No assets of any kind, or savings. My maternity pay is due to end in August and the amount of benefits we get will go down by £40 at the end of the year when our baby turns 1. I have no idea how much the APRs are on the debts. I have only put payments in the ones that we are paying agreed amounts with the creditors. The other ones are currently in negotiation or have not contacted us. The amounts that we owe may be more to the companies who have not contacted us, as the ones that do contact us have all put charges on, making the debts higher. Any advice?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 440
Partners monthly income after tax....... 1300
Benefits................................ 155

Total monthly income.................... 1895[/b]

Monthly Expense Details

Rent.................................... 650
Council tax............................. 117
Electricity............................. 80

Water rates............................. 37.17
Telephone (land line)................... 35
Mobile phone............................ 20
TV Licence.............................. 11.37
Satellite/Cable TV...................... 17 This wouldnt be allowed in BR, would have to be paid out of your own surplus
Internet Services....................... 25 Ditto - unless work related
Groceries etc. ......................... 260
Clothing................................ 70 - is this for both adults and child?
Other travel............................ 60

Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 15

Contents insurance...................... 14.43

Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 60 sometimes allowed
Holiday................................. 0
Emergency fund.......................... 20
Tobacco................................. 60 - must be paid out of own surplus im afraid
Union Fees.............................. 13.27
Total monthly expenses.................. 1697.24

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
American Express...............5098......15........0
Capital One....................1711......5.05......0
Egg (credit Card)..............3107......9.16......0
Natwest........................1082......0.........0
Intelligent Finance............1396......0.........0
Halifax........................3710......10.94.....0
HSBC...........................6305......18.6......0
Egg............................3745......0.........0
Capital One....................5043......0.........0
Nationwide.....................2080......6.13......0
Morgan Stanley.................2558......0.........0
Intelligent Finance............1813......0.........0
HSBC (Credit Card).............1589......0.........0
HSBC (overdraft)...............1810......0.........0
Egg (loan).....................7902......23.31.....0
Total unsecured debts..........48949.....88.19.....-

Monthly Budget Summary
Total monthly income.................... 1,895
Expenses (including secured debts)....... 1,697.24
Available for debt repayments........... 197.76
Monthly UNsecured debt repayments....... 88.19
Surplus(deficit if negative)............ 109.57

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -48,949
Net Assets.............................. -48,949

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

Looking at you SOA, must figures look ok apart from those i've highlighted. You have some with no monthly payments? i presume this is because not enough free cash or not included in the IVA? if they are not included and your other figures are correct etc then it may well be that BR is the best option for you.. That is only my opinion of course so must advise you get some advice from the professionals such as CAB and CCCS.

Dave

Toon_Dave

flis21 wrote: »

Oh, we also are in deficit to BT for the phone bill and to EDF for the electricity. We owe BT about £160 and EDF about £300. I want to up the direct debits to them to get the amounts we owe them down, but obviously we can't do that in our current situation. The current amounts we are paying them are keeping the phone bill at the same level of deficit, but the electricity deficit is increasing with every bill.

It would be difficult to advise paying more to each as this may mean you are favouring a creditor known as preferential treatment. You may have to inlcude the deficits (debts) in the BR order. This may mean they will terminate services and you looking for another suppliers for both phone and Electricity supply. I am not sure about the exact situation if paying and wanting to keep the services after BR.. i'm sure someone more in the know will be along to advise you soon

tigerfeet2006

Hi and welcome to the board.

While you are waiting for the CAB why not give the National Debtline or CCCS a ring, also do the CCCS online Debt Remedy. Numbers and links in my signature.

The EDF and BT arrears will be included in your BR if you decide that is the way to go.

You will be allowed your basic living expenses then if you have £99 surplus then that is yours. If you have over £99 then you start paying a percentage to the OR. This will last for 36 months. BR is for 12 months.

Below are some comment on your SOA as if you were to submit it for BR.

flis21 wrote: »

Ok, I've been to that website and done an SOA. Please be kind!

There are 2 adults and one child in the house. We rent and we don't have a car. No assets of any kind, or savings. My maternity pay is due to end in August and the amount of benefits we get will go down by £40 at the end of the year when our baby turns 1. I have no idea how much the APRs are on the debts. I have only put payments in the ones that we are paying agreed amounts with the creditors. The other ones are currently in negotiation or have not contacted us. The amounts that we owe may be more to the companies who have not contacted us, as the ones that do contact us have all put charges on, making the debts higher. Any advice?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 440
Partners monthly income after tax....... 1300
Benefits................................ 155

Total monthly income.................... 1895[/b]

Monthly Expense Details

Rent.................................... 650
Council tax............................. 117
Electricity............................. 80

Water rates............................. 37.17
Telephone (land line)................... 35
Mobile phone............................ 20
TV Licence.............................. 11.37
Satellite/Cable TV...................... 17 you will have to pay for this out of surplus
Internet Services....................... 25ditto
Groceries etc. ......................... 260 you could up this to £325/350
Clothing................................ 70
Other travel............................60assuming no car so this being bus/train

Other child related expenses............ 60 childminder?
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 15

Contents insurance...................... 14.43

Presents (birthday, christmas etc)...... 30 some OR's allow some don't but still include.
Haircuts................................ 20
Entertainment........................... 60 this will be disallowed.
Holiday................................. 0 put down £40 for this
Emergency fund.......................... 20 some will allow some won't so leave.
Tobacco................................. 60 this won't be allowed.
Union Fees.............................. 13.27
Total monthly expenses.................. 1697.24

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
American Express...............5098......15........0
Capital One....................1711......5.05......0
Egg (credit Card)..............3107......9.16......0
Natwest........................1082......0.........0
Intelligent Finance............1396......0.........0
Halifax........................3710......10.94.....0
HSBC...........................6305......18.6......0
Egg............................3745......0.........0
Capital One....................5043......0.........0
Nationwide.....................2080......6.13......0
Morgan Stanley.................2558......0.........0
Intelligent Finance............1813......0.........0
HSBC (Credit Card).............1589......0.........0
HSBC (overdraft)...............1810......0.........0
Egg (loan).....................7902......23.31.....0
Total unsecured debts..........48949.....88.19.....-

Monthly Budget Summary
Total monthly income.................... 1,895
Expenses (including secured debts)....... 1,697.24
Available for debt repayments........... 197.76
Monthly UNsecured debt repayments....... 88.19
Surplus(deficit if negative)............ 109.57

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -48,949
Net Assets.............................. -48,949

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

I will just go get some links for reading.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

http://www.insolvency.gov.uk/bankruptcy/whatisbankruptcy.htm

blind-as-a-bat_2

House keeping can be a bit higher than that tigerfeet to take account of the current increase in the cost of living;)

tigerfeet2006

Cheers Bat :D

mrskingandthescarecrow

If you look on Tiscali's website you can get tv, phone and broadband for 19.99 a month. Bargain! and for the first three month's it's 15.99.

We are currently swapping over, which will save us about £50 a month.

AllNancy

Is that advertising? Oh well never mind!

AOL have Silver at £9.99 permonth. AOL Talk £6.00....free normal phone calls. I think there is an offer on Talk at present...6 months. free.

Sky ....£75 for dish and box and 4 programmes. After 4 months, cancel programmes and then free to air. By the way £75 is a one off. Nothing else to pay.

When money is tight these things are handy to know about.

Nancy