SOA - Statement of Affairs Help

Options
I’ve just done my statement of affairs and wondered if anyone could help me with the amounts I’ve put in. They are what I currently spend and I don’t know if I’m supposed to drop them down. My costs will go up from October as child will be going to nursery more days so will have increased travel costs.

I’m considering bankruptcy (one of the creditors has refused to put account on hold but other three have). Feeling very anxious about all of this. I’m assuming the surplus would be an IPA for 36 months?



nt=courier new]Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1449
Other income............................ 400
Total monthly income.................... 1849


Monthly Expense Details

Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 19
TV Licence.............................. 12.37
Satellite/Cable TV...................... 10
Internet Services....................... 25
Groceries etc. ......................... 340
Clothing................................ 45
Petrol/diesel........................... 120
Road tax................................ 17.5
Car Insurance........................... 38
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 30
Total monthly expenses.................. 1781.87



Assets

Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


No Secured nor Hire Purchase Debts


Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard cc.................9600......257.......19.9
MBNA cc........................7572......103.2.....19.9
Halifax cc.....................6827......94.69.....19.9
Virgin cc......................3551......35.71.....19.9
«1

Comments

  • 927
    927 Posts: 46 Forumite
    Options
    Or a friend has offered £10k but only for full and final settlement. Im reluctant to do this but is that an option worth considering?
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Options
    Hi 927


    Your SOA should be an accurate reflection of what you are spending and generally your outgoings look reasonable. Your rent does look a little high but that could be because of the part of the country you live in. Is your rent average for the size of property you need?


    Your SOA does show that your unsecured debt payments are not affordable. It's your choice whether you accept help from your friend to try and make a full & final offer. What would be the arrangement in terms of paying your friend back? You currently only have £68 per month available after paying your normal outgoings. Also have you defaulted on any of the debts yet? If they're currently up to date it could be less likely creditors will agree to a full & final offer at this stage.


    An alternative option would be bankruptcy, that would give you a fresh start and get your debts written off after 12 months. You will be asked to enter into an IPA (which usually lasts 36 months) if the OR believes you have at least £20 per month available to pay towards your debts.


    It's a good idea to get some detailed advice on bankruptcy and how it will work. You can contact one of the free debt advice agencies for help with this.


    Best Wishes


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • 927
    927 Posts: 46 Forumite
    Options
    Thank you for replying - Rent is actually lower than market rates and is a two bed. The money will not need repaying - but will only be given if it!!!8217;s for a full and final settlement. I could probably scrape abnother £1000 together if I needed to.

    I haven!!!8217;t defaulted on anything - I contacted my 4 creditors last week and they all bar one put my accounts on hold for 30 days. I did say I!!!8217;d been advised bankruptcy then but they all seem keen on a payment scheme.

    In all reality my situation isn!!!8217;t going to improve. If I work I will need a vehicle and to balance the benefits and debt then I!!!8217;ll need to be full time and will then incur childcare costs.

    Would it be ok to call to sound them out first before writing to each?
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Options
    Hi again 927


    If you want to try and avoid bankruptcy you could make the full & final offers first. But unless enough of your creditors accept to significantly reduce your debts and make them manageable, there may be no point using your friend's money.


    It's not advisable to negotiate a full & final offer over the phone as you'll have no proof of what's been agreed. You need written confirmation of the offer before making any payment. You also need to make sure you tell the creditor what you can afford to offer, not ask them what they will accept.


    You can find more about full & final offers and how to work out the amount you offer here https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx.


    In terms of bankruptcy it may work for your situation but get more advice on it first. They can look at selling your car unless you are able to argue it is essential for employment or your domestic needs. Good luck with it all.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • 927
    927 Posts: 46 Forumite
    Options
    Thank you - the car is used to take my child to nursery and back (25 miles there and back) and this will increase to 4 days a week. Could I be forced to change nursery?
  • z1a
    z1a Posts: 2,522 Forumite
    First Anniversary First Post Combo Breaker
    Options
    927 wrote: »
    I’ve just done my statement of affairs and wondered if anyone could help me with the amounts I’ve put in. They are what I currently spend and I don’t know if I’m supposed to drop them down. My costs will go up from October as child will be going to nursery more days so will have increased travel costs.

    I’m considering bankruptcy (one of the creditors has refused to put account on hold but other three have). Feeling very anxious about all of this. I’m assuming the surplus would be an IPA for 36 months?



    nt=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 0
    Partners monthly income after tax....... 0
    Benefits................................ 1449
    Other income............................ 400
    Total monthly income.................... 1849


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 850
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 28
    Telephone (land line)................... 0
    Mobile phone............................ 19
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 10
    Internet Services....................... 25
    Groceries etc. ......................... 340
    Clothing................................ 45
    Petrol/diesel........................... 120
    Road tax................................ 17.5
    Car Insurance........................... 38
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 60
    Medical (prescriptions, dentist etc).... 30
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 7
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 20
    Entertainment........................... 0
    Holiday................................. 10
    Emergency fund.......................... 30
    Total monthly expenses.................. 1781.87



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0
    Total Assets............................ 1500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Barclaycard cc.................9600......257.......19.9
    MBNA cc........................7572......103.2.....19.9
    Halifax cc.....................6827......94.69.....19.9
    Virgin cc......................3551......35.71.....19.9

    Why do you need child care if you're not working?
  • 927
    927 Posts: 46 Forumite
    Options
    I will need childcare if and when I return to work. I don’t currently require it. However to cover debt and all bills I would need to work full time thereby requiring childcare.
  • luvchocolate
    luvchocolate Posts: 3,254 Forumite
    First Anniversary Name Dropper First Post Home Insurance Hacker!
    Options
    Your S.O.A needs to be what you have now, so have 0 for salary you can't put a figure in for nursery in case you go back to work.
    If and when your situation changes you would then inform the O.R of changes and a new S.O.A would be done.
    As you income is solely from benefits at the moment no I.P.A would be set up anyway.
  • 927
    927 Posts: 46 Forumite
    Options
    Thank you. What about the £400 I will be getting in child maintenance - wouldn!!!8217;t that be used for an ipa? My parents have been helping me as and when (most months) I!!!8217;ve needed it as the maintenance has just been agreed (private agreement).
  • Clouds88
    Clouds88 Posts: 386 Forumite
    First Anniversary First Post
    Options
    I think £200 on travel when you don!!!8217;t !!!8220;need!!!8221; a car will be looked at. Why don!!!8217;t you sell the car and keep the money in a savings account in case of emergencies.

    At the moment you!!!8217;re not working, and if you can !!!8216;afford!!!8217; to stay at home and look after your child and have the debts written off I know what I would do. I work part time in the NHS and do anti social shifts so I can be with my babies as much as I possibly can. Can you
    Move your child to a closer nursery? Or take her/him out if they aren!!!8217;t 3 yet.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards