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  • FIRST POST
    • Sugarglider1992
    • By Sugarglider1992 26th Jan 19, 11:51 AM
    • 14Posts
    • 4Thanks
    Sugarglider1992
    The time is now..
    • #1
    • 26th Jan 19, 11:51 AM
    The time is now.. 26th Jan 19 at 11:51 AM
    Good Morning,

    i've been watching this forum for a while and have finally decided the time is right to join in and make the movements i've been putting off for too long. Your advice would be greatly appreciated, as I am treading in very unfamiliar waters and in all honesty, i'm a little scared.

    Quick idea on my background, 26yo, living with my parents. Stable income but unstable mental health since the age of 14. Alongside that, a failed business and falling into gambling, i've ended up here, granted, through burying my head in the sand. I would say majority of my original debts were through living costs when I set up a business, reckless spending during BPD episodes, and gambling in an attempt to rectify them, which put me in a whole new level of debt.

    My family have financially been supporting me for the last few years, I've sparingly paid my share of the household bills and sometimes they wouldn't see a penny of rent for months but due to my mental health, they overlooked it for a long time so that I could pay my debts without falling behind and live a reasonable life to keep my head 'bobbing along' without too many relapses. Now through their own change in circumstances, it is time for me to grow up and accept the changes that I need to make. Over the past 6 months I have worked hard in therapy and feel ready to get some order in my life.

    Self excluded from all gambling sites in March 2018 and with help from my therapist, have not relapsed I only pay some of the smaller bills to the household as and when there is money left over to take, but they have made it clear that this needs to change now. They have to take in my share of the bills or they will no longer be able to afford to offer me a roof and will need to downsize themselves- and rightly so! So to pay what I should pay to be self sufficient, I am now looking at bankruptcy, not only for the financial reasons but for the fresh start allowing me to accept my 'past life' and give myself the opportunity to build a new life and move forward. As with everybody there are a few variables. I don't own a car, I have use of one from my parents business fleet which I pay tax and part pay the vehicle maintenance. Growing up, I didn't have many friends so I substituted with pets, hence the pet bills. I don't own a lot, other than a TV in by bedroom which I would be happy to give up if they wanted it

    I've finalised an SOA as best I can for what I need to pay, starting now, and given my reasons for the figures. So when I file, these will be my outgoings. Honest advice or constructive criticism is very welcome! Apologies for the long post, I have absolutely no idea what I am doing. thank you



    Monthly Income Details
    Monthly income after tax................ 1410 - rough average of weekly pay
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1410


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 400 - I have a fair bit of my own space within the house and use of the TV and white goods etc. my things are included in their contents insurance. figure requested by my parents, non negotiable.
    Management charge (leasehold property).. 0
    Council tax............................. 36 1/4 share
    Electricity............................. 10
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 50.15 current contract - expect this to be not allowed
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 250 inc cleaning products, toileties etc
    Clothing................................ 15
    Petrol/diesel........................... 250 - approx 60pw, I commute 40mins to work and therapy sessions in a petrol car
    Road tax................................ 16.62
    Car Insurance........................... 30 - contribution to a fleet policy
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 40 - hoping for dentist bills, my teeth are in very bad shape. when my dental bills are done I could offer this to the OR??
    Pet insurance/vet bills................. 29.62 dog insurance and worm/ fleaing
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 12
    Haircuts................................ 10
    Entertainment........................... 40 - rough idea on 10pw for say a coffee and bite to eat?
    Holiday................................. 20
    Emergency fund.......................... 15
    Pet Food ............................... 30.33 - have a dog, chinchillas, rabbit and fish
    (Unnamed monthly expense)............... 0
    Pyschotherapy........................... 100 - 2 x £50 psychotherapy sessions, NHS have let me down so been with this private therapist for 4 years
    Total monthly expenses.................. 1394.72



    Assets

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


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Natwest CC.....................2443.24...57.91.....17.43
    Barclaycard CC.................8579.07...277.2.....26.68
    Hitachi Finance ...............4503.5....180.1.....10.88
    Tesco .........................1604.96...25........0
    Total unsecured debts..........17130.77..540.21....-



    Monthly Budget Summary

    Total monthly income.................... 1,410
    Expenses (including HP & secured debts). 1,394.72
    Available for debt repayments........... 15.28
    Monthly UNsecured debt repayments....... 540.21
    Amount short for making debt repayments. -524.93


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -17,130.77
    Net Assets.............................. -17,130.77
    Last edited by Sugarglider1992; 26-01-2019 at 12:41 PM.
Page 1
    • debt doctor
    • By debt doctor 26th Jan 19, 12:18 PM
    • 4,539 Posts
    • 6,229 Thanks
    debt doctor
    • #2
    • 26th Jan 19, 12:18 PM
    • #2
    • 26th Jan 19, 12:18 PM
    Hi,

    I have no concerns about anything in your SOA apart from the last entry in bold - which of course you have deliberately highlighted.

    You will need to demonstrate that the private therapy sessions are necessary to satisfy your 'reasonable domestic needs'. You will need considerable documented evidence from your therapist, doctor, family statements etc as to why you need this and it is not something the state can offer.

    It seems to me that you have done a lot to help yourself in recent times and I am in no doubt how important these sessions are to you - but it is not me you need to convince.

    If you and the OR can't agree to an IPA, then the OR can go to court to TRY to obtain an IPO.

    You might want to look at the Equality Act as a defence.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • silvercar
    • By silvercar 26th Jan 19, 12:32 PM
    • 39,572 Posts
    • 163,720 Thanks
    silvercar
    • #3
    • 26th Jan 19, 12:32 PM
    • #3
    • 26th Jan 19, 12:32 PM
    Pyschotherapy........................... 100 - 2 x £50pw

    If your pyschotherapy sessions are £50 per week, 2 per week, shouldn't that be £400-450 a month, or did you mean 2 sessions per month?

    Well done on sorting your life out.
    • Sugarglider1992
    • By Sugarglider1992 26th Jan 19, 12:39 PM
    • 14 Posts
    • 4 Thanks
    Sugarglider1992
    • #4
    • 26th Jan 19, 12:39 PM
    • #4
    • 26th Jan 19, 12:39 PM
    I can understand why they would query it because its a lot of money to be spent

    I have a lot of documentation over the last 10 years or so from doctors, NHS, therapist etc so I should hopefully be able to get enough together to put it forward to the OR

    Thats my mistake on the note, thanks for picking that up! Its 2 x sessions per month, each session is £50 - total £100 per month

    thank you for your help!
    • debt doctor
    • By debt doctor 26th Jan 19, 12:40 PM
    • 4,539 Posts
    • 6,229 Thanks
    debt doctor
    • #5
    • 26th Jan 19, 12:40 PM
    • #5
    • 26th Jan 19, 12:40 PM
    I also think that the fact you have been taking these sessions for 4 years is in your favour - It's not something you have recently decided to have.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • Clouds88
    • By Clouds88 26th Jan 19, 2:37 PM
    • 220 Posts
    • 204 Thanks
    Clouds88
    • #6
    • 26th Jan 19, 2:37 PM
    • #6
    • 26th Jan 19, 2:37 PM
    I know this isn’t about bankruptcy but I from what you have written. My husband is suffering quite badly with depression and we are now thinking of trying private counselling as he is now on the third anti depressant and all they can offer him is a 4 month + wait for a telephone therapy session. I know everyone is different but how long did you go before it made you feel slightly better? I’m bankrupt and he’s just going for a DRO should be on the register any day so we will struggle to pay the £45 a week but I think it’s got to be worth a shot to try and get him to feel better. Sorry for diverting your thread!
    • Sugarglider1992
    • By Sugarglider1992 26th Jan 19, 4:00 PM
    • 14 Posts
    • 4 Thanks
    Sugarglider1992
    • #7
    • 26th Jan 19, 4:00 PM
    • #7
    • 26th Jan 19, 4:00 PM
    I know this isnít about bankruptcy but I from what you have written. My husband is suffering quite badly with depression and we are now thinking of trying private counselling as he is now on the third anti depressant and all they can offer him is a 4 month + wait for a telephone therapy session. I know everyone is different but how long did you go before it made you feel slightly better? Iím bankrupt and heís just going for a DRO should be on the register any day so we will struggle to pay the £45 a week but I think itís got to be worth a shot to try and get him to feel better. Sorry for diverting your thread!
    Originally posted by Clouds88
    I'm sorry to hear that your husband is struggling, it can feel like a lot of money to put into a session when you work out they can charge about £1 a minute. I found the private therapists work a lot closer with you and build a better relationship for your long term health plans, whereas the NHS chop and change your therapists quite often. He will more than likely feel worse for a little while, but will feel the benefits within a couple of months. 'It has to get worse to get better'. Once he is aware of the triggers and reasons for his depression, he will be given the skills he needs to keep fighting on. Best of luck! x
    • silvercar
    • By silvercar 26th Jan 19, 4:22 PM
    • 39,572 Posts
    • 163,720 Thanks
    silvercar
    • #8
    • 26th Jan 19, 4:22 PM
    • #8
    • 26th Jan 19, 4:22 PM
    Looking at your figures again, would a DRO work for you?

    Once you have taken the big step, it looks to me that your monthly outgoings won't reduce greatly but that you will be paying your way in the home (ie you are broadly swapping credit card debt repayments for rent etc) Just pointing this out, so you are mentally prepared for this.
    • Sugarglider1992
    • By Sugarglider1992 26th Jan 19, 4:55 PM
    • 14 Posts
    • 4 Thanks
    Sugarglider1992
    • #9
    • 26th Jan 19, 4:55 PM
    • #9
    • 26th Jan 19, 4:55 PM
    Looking at your figures again, would a DRO work for you?

    Once you have taken the big step, it looks to me that your monthly outgoings won't reduce greatly but that you will be paying your way in the home (ie you are broadly swapping credit card debt repayments for rent etc) Just pointing this out, so you are mentally prepared for this.
    Originally posted by silvercar

    I've actually spent some time on the phone with Step Change today who came up with a DRO as a solution, but i've had so many suggestions on Bankruptcy, i've failed to take much of a look at what a DRO entails. From what I have looked into over the last few hours, it looks as though your debts are not written off for 12 months, but if nothing changes, they will write off at the end of your DRO period. Other than that, I can't see a huge difference in the con's between them both. Am I along the right sort of lines? thank you
    • maxmycardagain
    • By maxmycardagain 26th Jan 19, 5:26 PM
    • 4,912 Posts
    • 3,801 Thanks
    maxmycardagain
    I've actually spent some time on the phone with Step Change today who came up with a DRO as a solution, but i've had so many suggestions on Bankruptcy, i've failed to take much of a look at what a DRO entails. From what I have looked into over the last few hours, it looks as though your debts are not written off for 12 months, but if nothing changes, they will write off at the end of your DRO period. Other than that, I can't see a huge difference in the con's between them both. Am I along the right sort of lines? thank you
    Originally posted by Daniellemcookie
    more or less plus a DRO costs about £70 while a BR costs about £700

    during a BR - should you secure a great paying job - you could end up with a 3 year IPA ..... so the difference between a DRO and BR is quite narrow.
    Last edited by maxmycardagain; 26-01-2019 at 5:31 PM.
    Dont worry, be happy
    • Sugarglider1992
    • By Sugarglider1992 26th Jan 19, 6:00 PM
    • 14 Posts
    • 4 Thanks
    Sugarglider1992
    more or less plus a DRO costs about £70 while a BR costs about £700

    during a BR - should you secure a great paying job - you could end up with a 3 year IPA ..... so the difference between a DRO and BR is quite narrow.
    Originally posted by maxmycardagain
    The cost difference is enormous, if I can go down the DRO route, i'll be able to put aside the money to apply within weeks rather than months!

    My main concern right now is stopping the direct debits to the creditors. When is the 'right time'? I'm waiting for my paperwork for my new bank account, but realistically need to be setting up all of my standing orders for my rent etc as soon as my online banking arrives, which means all the DD's need to stop.

    Is there a 'moral' way of doing this, writing to the companies to let them know, or do I cancel them and just hold tight through the storm?
    • silvercar
    • By silvercar 26th Jan 19, 7:47 PM
    • 39,572 Posts
    • 163,720 Thanks
    silvercar
    The cost difference is enormous, if I can go down the DRO route, i'll be able to put aside the money to apply within weeks rather than months!

    My main concern right now is stopping the direct debits to the creditors. When is the 'right time'? I'm waiting for my paperwork for my new bank account, but realistically need to be setting up all of my standing orders for my rent etc as soon as my online banking arrives, which means all the DD's need to stop.

    Is there a 'moral' way of doing this, writing to the companies to let them know, or do I cancel them and just hold tight through the storm?
    Originally posted by Daniellemcookie
    If you are going bankrupt/ DRO then you may as well do it as soon as possible.

    Bottom line is that you need to pay rent and you can't afford rent while you are paying credit card debts. This situation isn't going away, so the sooner the better.

    Don't expect the credit card companies to be on the phone; it will take them a while to act on a missed payment.

    There are no 'moral' considerations for you here. The credit card companies know that a certain percentage of debts owed won't be paid, it is in their business model. Paying rent is a priority debt, more important than servicing debt.
    • Aaleigha
    • By Aaleigha 26th Jan 19, 8:00 PM
    • 567 Posts
    • 3,706 Thanks
    Aaleigha
    have a talk to your therapist about your money situation mine changed to a visit to mines home in her therapy room and a much reduced amount (half) I too was in therapy for four years and do know how VITAL it can been so I would not give them up but just get as much documentation as you can and statements from those (who know) you are in contact with on a regular basis

    wish you all the best for your future
    SEALED POT CHALLENGE # 100
    pot 1 (unknown starting amount) £18 Pot 2 £10
    total £22.50
    EMERGENCY FUND
    £40/1000 plus some in my bank £138 total 178/1000
    DECLUTTER. 183/2019
    • Sugarglider1992
    • By Sugarglider1992 26th Mar 19, 6:03 PM
    • 14 Posts
    • 4 Thanks
    Sugarglider1992
    Hi All

    Just wanted to update as I have ended up in a right pickle! After taking Step Change debt advice back in January, and as they advised me to do so, set up a DRO application and sat patiently waiting for weeks, and weeks.

    Today, they confirmed they would not be processing my DRO application as the insolvency service will decline it due to my therapy.

    WHAT THE?!

    I made it VERY clear to them from the start about my therapy, they put it under 'medical expenses' & as they told me to, I got a case together with letters and documentation dating back to 2004. I stopped all my payments to creditors and they leave it until I have already missed a few to tell me that they won't be processing my application anyway. All these weeks sat waiting and they could have told me this on day one.

    So now after 2 missed payments to each creditor, going on for 3... I am back at square one, having to look down the standard bankruptcy route.

    This has knocked me down a lot, I am just scared that when I find the money to file for bankruptcy, they will be turning around and giving me the same rejection I have just faced.

    does anybody have any experience with this, or anything relating to mental health medical expenses with a bankruptcy application please? Feel like I have hit a brick wall
    • Minkym00
    • By Minkym00 26th Mar 19, 7:47 PM
    • 222 Posts
    • 89 Thanks
    Minkym00
    If I were you I would write a complaint detailing everything you have here, explaining how much of an impact that the delay has had on you and how it has worsened your financial position. Send it the the head of the Insolvency Service at sarah.albon@insolvency.gov.uk.

    It’s always more effective for a complaint to passed down the chain than up it!
    • betterdaysahead
    • By betterdaysahead 12th Oct 19, 2:14 AM
    • 116 Posts
    • 59 Thanks
    betterdaysahead
    Hi All

    Just wanted to update as I have ended up in a right pickle! After taking Step Change debt advice back in January, and as they advised me to do so, set up a DRO application and sat patiently waiting for weeks, and weeks.

    Today, they confirmed they would not be processing my DRO application as the insolvency service will decline it due to my therapy.

    WHAT THE?!

    I made it VERY clear to them from the start about my therapy, they put it under 'medical expenses' & as they told me to, I got a case together with letters and documentation dating back to 2004. I stopped all my payments to creditors and they leave it until I have already missed a few to tell me that they won't be processing my application anyway. All these weeks sat waiting and they could have told me this on day one.

    So now after 2 missed payments to each creditor, going on for 3... I am back at square one, having to look down the standard bankruptcy route.

    This has knocked me down a lot, I am just scared that when I find the money to file for bankruptcy, they will be turning around and giving me the same rejection I have just faced.

    does anybody have any experience with this, or anything relating to mental health medical expenses with a bankruptcy application please? Feel like I have hit a brick wall
    Originally posted by Sugarglider1992
    Hi, just wondering how things have progressed for you since this post? There is always light at the end of the tunnel. Prior to my bankruptcy I found StepChange very useful to speak to regarding the financial aspect of things, but everyone's situation is unique. And please understand that bankruptcy is not an horrendous full stop. I am now less than a full year away from completing my 6 years. During that time I have had ups and downs to say the least, but I have never felt more positive about life. It can seem like a huge length of time but it really isn't. I've learnt that if you put the small building blocks in place that seem insignificant at the time, time disappears very very quicly and as a person you can heal quickly. I hope all is going well and wish you well going forward!
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