About to apply for bankruptcy advice on SOA please

surfwaves80 · 19 February 2018 at 2:34PM

Hi
I am about to apply for bankruptcy because of a negative equity £67000 shortfall from handing a house I had with my ex to the bank.
I also have around £400 on a credit card, which Citizens Advice (who are amazing) had advised me to stop paying because I am about to declare bankruptcy.
I wondered if I could get some thoughts on my SOA. I am wanting to avoid going on an IPA at all costs; the situation with the house was very stressful and I don;t want to have to keep paying for another 3 years for an unlucky mistake; I would feel very trapped in doing so, no matter how small the payments are- i don't really believe I am earning enough anyway.
I currently live in my vehicle because of the nature of my job, so I need my van to keep working. Therefore, I don't pay any rent/utilities/council tax etc.
CA advised me that my mum can buy the OR's share of their interest in the asset in my van so i could keep it. I am more focused on whether my SOA is reasonable and whether the forum thinks the OR will demand I cut something out in order to pay.
My transport fuel is high, because my boyfriend lives 70 miles away and also my mother lives on her own and is 100 miles away. I visit both regularly.

Monthly Budget Summary Amount(£)
Total monthly income 662
Monthly expenses (incl. HP & secured loans) 662.67
Available for debt repayments -0.67
UNsecured debt repayments 0
Amount short for making debt repayments -0.67
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 10,000
Total Secured & HP Debt -0
Total Unsecured Debt -68,200
Net Assets -58,200
Income, Expense, Debt & Asset Details
Income Amount(£)
Monthly income after tax 662
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 662
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property) 0
Council tax 0
Electricity 0
Gas 0
Oil 0
Water Rates 0
Telephone (land line) 0
Mobile phone 24
Wifi 5
TV Licence 0
Satellite/Cable TV 0
Internet services 16
Groceries etc. 175
Clothing 30
Petrol/diesel 200
Road tax 22
Car Insurance 10
Car maintenance (including MOT) 84
Car Parking 16
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0.67
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 15
Haircuts 0
Entertainment 0
Holiday 0
Emergency Fund 0
laundry 30
camping gas/heating 35
Total monthly expenses 672.67

Your thoughts would be very much appreciated
Thanks

National_Debtline · 19 February 2018 at 3:49PM

Hi there and welcome to MSE,

Whilst buying the beneficial interest in a vehicle is not as common as buying it in a property, I cannot see any reason why a third party can't approach the OR and make an offer. Your vehicle is the biggest expense that you have and none of your other expenses seem to be an issue.

However, a key issue to bear in mind in a situation like this is that it is all at the discretion of the OR and you won't know for certain until after going bankrupt. It is possible the OR may take other factors into consideration, such as the cost of petrol. They may, for example, argue that the expense of the petrol is unjustifiable and pursue a sale rather than a 'deal'.

I would suggest calling the Insolvency Service in this case, and although they are unlikely to give you a 100% definitive answer, they may be able to offer more guidance - 0300 678 0015.

Laura
@natdebtline

surfwaves80 · 19 February 2018 at 4:30PM

Hi Laura

Thanks for taking the time to feedback.
Thats pretty much the advice I had been given by CA, that its up to the discretion of the OR. I just wanted to get a feel for if there is anything on there that they may say is excessive; my biggest worry as you say was the petrol.
My van is my home, and if I lost my van I lose my job as one of the provisos of my job is i have to have my own accommodation. Renting in the area I work is not an option as its too expensive. My mum is prepared to pay the full value of the van so I can keep it and therefore keep my job.
So, its really my expenditures I am focused on. I do genuinely spend that amount on diesel each month, but maybe I could add more to my groceries expenditure instead?
It seems difficult to forecast what they will see as essential/reasonable spending. I have heard that they allow budgeting for holidays- that seems more excessive to me than my travelling expenses?

Thanks again

debt_doctor · 19 February 2018 at 8:35PM

Hi,
You could have £300 for groceries, so maybe up your groceries to this figure and if you feel that the fuel is controversial then reduce the fuel accordingly.
DD

surfwaves80 · 19 February 2018 at 8:53PM

Hi Debt Doctor
Thank you also for looking at my post
I thought my food budget was a bit ridiculous at £175 but have spent all day looking at my figures, and after doing a mock ASDA order online, I realised I probably spend more on food than I originally thought, so have upped it to £195 and reduced the petrol. I also added a few things I had not thought of initially, and somehow my monthly outgoings have gone up to £770! I don't know if going way over is a good thing in my situation, I am desperate not to go onto an IPA though as my situation has been going on for about 10 years with my ex being difficult about releasing me from the mortgage all this time; I want this noose around my neck to be gone as soon as possible

debt_doctor · 19 February 2018 at 9:00PM

There is no justification for an IPA in your situation. I have successfully negotiated / defended many, many IPA's over the years. In the unlikely event you find an IPA offered to you - say no - and get back on here for advice.
DD

surfwaves80 · 19 February 2018 at 9:10PM

Thank you so much, I feel alot more re-assured. I will submit my application on friday and keep my fingers crossed for a kind OR!

surfwaves80 · 3 June 2018 at 7:05PM

Thanks again to all above that advised on my application. So I have had my telephone interview back in march, and was told that my mother can buy the interest in my van so i get to keepthis! Amazing news, but they have yet to contact her about it. Not sure how long that would take?
Also I was told there should be no need to make repayments. Is this something I will get in writing, or do i need to request this?

debt_doctor · 4 June 2018 at 10:47PM

Great news!

You won't necessarily get their decision in writing, but their decision is correct. Unless your income / expenses change then there will never be an IPA.
You can ask for the decision in writing, but I suggest you don't do so as you have already achieved what you want and that if things change you can ask for written confirmation at that point.

DD

surfwaves80 · 5 June 2018 at 8:34AM

Thanks again Debt doctor, the guy that interviewed me said he didn't think I would need to pay anything and asked no questions at all on my income and expenditures after all my worrying!
I guess Im worried now that because he has passed my case on to the OR, they may review and think differently. They cant start taking money out though without notifying me if that's the case can they?

debt_doctor · 7 June 2018 at 8:23AM

They cant take money from you without either your agreement (IPA) or by taking you to court and being successful in gaining an IPO - which is the same as a IPA but decided by the court instead of by agreement.

Looks like you will suffer neither.

DD

About to apply for bankruptcy advice on SOA please

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