SOA help Stepchange NO HELP

Joa1210_2 · 12 March 2019 at 10:46AM

Hi, my husband is applying for DRO, we did a full household SOA including my wage and a tax credit overpayment, we havent listed that as a debt purely and expenditure as its in both our names, step change have said that because of this we need to do a new SOA with just my husbands incoming and out goings.
we dont split things via his wage or mine, we just pay them,
any advice please, it seems absolutely ridiculous, do i take iof my income and any bills that add up to that? do we resubmit both incomings and deduct £20 from my wage and not list the overpayment?

fatbelly · 13 March 2019 at 9:10AM

Well he overpayment (if they've decided it has to be repaid) is a debt and must be listed.

The way I see it (intermediary working for CAB) if the finances are intertwined, it is easiest to do a joint soa, then get the intermediary to apportion the expenses pro-rata against the debtor's income.

If the intermediary won't do it then I guess you will have to, or start again elsewhere.

Edit:if all else fails, post your joint soa here and I'll split it. It'll take 5 minutes.

Joa1210_2 · 13 March 2019 at 2:03PM

Thanks Fatbelly, here it is.
much appreciated
Ive put in the HMRC tax overpayment as currently thats the only monthly payment we are making, i need to check further if the overpayment is even in my husbands name as the last letter that came was addressed only to me, either way, it cant be written off as they will just come to me for it if its joint,
i was actually made BR in 2017 but this has been continued to be paid for the reason its in joint names (so i believe)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1863
Partners monthly income after tax....... 580
Benefits................................ 192
Other income............................ 0
Total monthly income.................... 2635

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 18
Mobile phone............................ 27
TV Licence.............................. 12
Satellite/Cable TV...................... 16
Internet Services....................... 12
Groceries etc. ......................... 544
Clothing................................ 40
Petrol/diesel........................... 280
Road tax................................ 21
Car Insurance........................... 62
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 130
Childcare/nursery....................... 109
Other child related expenses............ 145
Medical (prescriptions, dentist etc).... 35
Pet insurance/vet bills................. 35
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 30
Total monthly expenses.................. 2603

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 1064
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1064

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
car finance ...................3440......0.........0
cc ............................3390......0.........0
cc ............................1400......0.........0
hmrc...........................510.......0.........0
hmrc...........................400.......20........0
overdraft debt.................398.......0.........0
mobile debt ...................400.......0.........0
Total unsecured debts..........9938......20........-

Monthly Budget Summary
Total monthly income.................... 2,635
Expenses (including HP & secured debts). 2,603
Available for debt repayments........... 32
Monthly UNsecured debt repayments....... 20
Amount left after debt repayments....... 12

Personal Balance Sheet Summary
Total assets (things you own)........... 1,064
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,938
Net Assets.............................. -8,874

fatbelly · 13 March 2019 at 3:43PM

Joa1210 wrote: »

Thanks Fatbelly, here it is.
much appreciated
Ive put in the HMRC tax overpayment as currently thats the only monthly payment we are making, i need to check further if the overpayment is even in my husbands name as the last letter that came was addressed only to me, either way, it cant be written off as they will just come to me for it if its joint,
i was actually made BR in 2017 but this has been continued to be paid for the reason its in joint names (so i believe)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1863
Partners monthly income after tax....... 580
Benefits................................ 192
Other income............................ 0
Total monthly income.................... 2635

Monthly Expense Details

Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 650 460
Management charge (leasehold property).. 0
Council tax............................. 130 92
Electricity............................. 75 53
Gas..................................... 75 53
Oil..................................... 0
Water rates............................. 45 32
Telephone (land line)................... 18 13
Mobile phone............................ 27 19
TV Licence.............................. 12 8.50
Satellite/Cable TV...................... 16 11
Internet Services....................... 12 8.50
Groceries etc. ......................... 544 385
Clothing................................ 40 28
Petrol/diesel........................... 280 198
Road tax................................ 21 15
Car Insurance........................... 62 44
Car maintenance (including MOT)......... 30 21
Car parking............................. 0
Other travel............................ 130 92
Childcare/nursery....................... 109 77
Other child related expenses............ 145 103
Medical (prescriptions, dentist etc).... 35 25
Pet insurance/vet bills................. 35 25
Buildings insurance..................... 0
Contents insurance...................... 12 8.50
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 21
Haircuts................................ 20 14
Entertainment........................... 0
Holiday................................. 20 14
Emergency fund.......................... 30 21
Total monthly expenses.................. 2603 1841.50

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 1064
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1064

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
car finance ...................3440......0.........0
cc ............................3390......0.........0
cc ............................1400......0.........0
hmrc...........................510.......0.........0
hmrc...........................400.......20........0
overdraft debt.................398.......0.........0
mobile debt ...................400.......0.........0
Total unsecured debts..........9938......20........-

Monthly Budget Summary
Total monthly income.................... 2,635
Expenses (including HP & secured debts). 2,603
Available for debt repayments........... 32
Monthly UNsecured debt repayments....... 20
Amount left after debt repayments....... 12

Personal Balance Sheet Summary
Total assets (things you own)........... 1,064
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,938
Net Assets.............................. -8,874

I've assumed the major wage earner is the one with the debts and so the second set of expense figures are the pro-rata ones to use on the application against 1863 income

Regarding the HMRC debt he cannot make any payment to it. If it existed pre-2017 then your liability for it should have been extinguished by your bankruptcy and his liability will be covered by the DRO.

I don't think your figures look too bad - even removing emergency fund he is still under £50 surplus

If the car finance is HP and in the debtor's name then he does need advice on that and has to choose what to do with it. If it's a loan it just goes into the DRO.

Joa1210_2 · 13 March 2019 at 3:56PM

what would happen then if i look and the overpayment is just in my name? should i have stopped paying it?
my IP never said anything when i went BR

Joa1210_2 · 13 March 2019 at 4:57PM

Thanks fat belly, I just need to clarify do we now just submit his wage and outgoings and exclude mine when we call step change, what about the CHB?
I'm sorry for all the questions but it's thrown me out as when I went BR we did it as a whole.
The car finance is from when we handed out car back, it's now with debt recovery

fatbelly · 13 March 2019 at 8:03PM

The car finance is just a straight debt then, good

You said earlier 'step change have said that we need to do a new SOA with just my husbands incoming and out goings.' You've got that now.

I assumed his income to be the major wage and the rest in your name.

I guess you continued to pay the Tax credit overpayment after your bankruptcy because it was joint and your husband remained liable. Once he has his DRO you should ask stepchange to write a letter explaining the dual insolvency and why they have no further 'remedy against the debt'. I'm sure as professional debt advisers they will be happy to do that.

If HMRC feel there are reasons why this does not apply they must set out what those reasons are.

Joa1210_2 · 13 March 2019 at 9:28PM

You sir are a gentleman.
Many Many Thanks
I'll re do the SOA (I'm the brains (?) behind the outfit) or the one who knows how to fill the forms out.

Thank you again

SOA help Stepchange NO HELP

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