SOA Question

gonegirl · 19 June 2019 at 1:22PM

I am looking for solutions to a debt problem of around 90k. Looking here it seems a good idea to post our household income and expenses so we can get some people with experience to advise. A little confused on completing the online SOA. I am getting a few benefits like Housing and Council Tax. Do i list these under income. They are not actually paid to me so not technically an expense I pay out through my bank on a monthly basis.
Soquestion is list as a benefit or an expense ?

Willing2Learn · 19 June 2019 at 1:31PM

Even though the money does not pass through your bank accounts, I would still include them in your SOA. So enter the benefits under income. And then include your rent and council tax bill under expenses, so that it all balances out.

And welcome to the forum

gonegirl · 19 June 2019 at 1:38PM

Thank you very much. Will get on with that :-)

gonegirl · 20 June 2019 at 4:00PM

OUR SOA......Any comments will be welcome. A few things my other half has no income at the moment. We are only in receipt of state benefits plus a small annuity paid annually (not monthly) We are fairly rural. Other half uses public transport to visit daughter a fair distance away. Only one car.

Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 68
Partners monthly income after tax....... 0
Benefits................................ 1734.23
Other income............................ 0
Total monthly income.................... 1802.23

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 425.34
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 24.99
Gas..................................... 60
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12.83
Satellite/Cable TV...................... 15
Internet Services....................... 36
Groceries etc. ......................... 455
Clothing................................ 45
Petrol/diesel........................... 250
Road tax................................ 10
Car Insurance........................... 18
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 70
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 53
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 15
Entertainment........................... 40
Holiday................................. 10
Emergency fund.......................... 0
Total monthly expenses.................. 1824.16

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
Total Debt ....................46000.....0.........0
Total unsecured debts..........46000.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,802.23
Expenses (including HP & secured debts). 1,824.16
Available for debt repayments........... -21.93
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -21.93

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -46,000
Net Assets.............................. -44,500

MovingForwards · 20 June 2019 at 5:03PM

Double check your debt figures as your first post says £90k, but your SOA says £46k.

I'm not sure of your ages but is your partner able to work? Are you? (Not being rude, just building up a background for you both).

Where has all the debt come from, as you haven't broken it down.

How much is attributable to each of you?

Is the debt increasing due to being on benefits?

How old is the car? It may not be the value you think it is.

As I said, not being rude just fact finding!

Looking at it, based on your current circumstances, a DMP would not be suitable due to not having sufficient money, an IVA may work but you would have to reduce some of your outgoings ie food is a lot, sky could go, but even tweaking the figures it's not a huge amount you will save and have for an IVA.

Have you considered bankruptcy? I mention it due to the size of the debt, your financial circumstances and the fact you are renting. It would be done and gone, leaving you to move on with your life after a certain amount of time.

You would need to get your figures to balance a bit better as you need to be able to cover your normal outgoings but not be able to service your debts.

debt_doctor · 20 June 2019 at 9:11PM

Hi,

There is nothing wrong with any of your expenses, so you should not get an IPA and should challenge any IPA offered.
In any event, the maximum IPA would be to the extent of the non benefit income - so maximum possible IPA = £68 per month. But as said, you shouldn't get an IPA at all.

DD

gonegirl · 20 June 2019 at 9:29PM

Thanks both I notice that the DD is from Citizens Advice and on that basis will be seeking to arrange a local appointment to decide on Sequestration.... We are in Scotland.

MovingForwards · 20 June 2019 at 10:01PM

Good luck!

You will still need to make sure your outgoings tally up to your income so drop your food budget to balance the books and you should be good to go

luvchocolate · 21 June 2019 at 7:16AM

D.D is our S.O.A expert on here and I would trust his judgement.
Keep in touch when you have had your appointment and let us know how it goes, good luck

debt_doctor · 21 June 2019 at 10:02PM

Things are slightly different in Scotland - but in the case of IPA's, the SOA allowances are a bit better than England & Wales so you will be fine.

DD

SOA Question

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free