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  • FIRST POST
    • 927
    • By 927 28th Jun 18, 12:17 PM
    • 30Posts
    • 5Thanks
    927
    SOA - Statement of Affairs Help
    • #1
    • 28th Jun 18, 12:17 PM
    SOA - Statement of Affairs Help 28th Jun 18 at 12:17 PM
    Iíve just done my statement of affairs and wondered if anyone could help me with the amounts Iíve put in. They are what I currently spend and I donít know if Iím 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.

    Iím considering bankruptcy (one of the creditors has refused to put account on hold but other three have). Feeling very anxious about all of this. Iím 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[b]
Page 1
    • 927
    • By 927 28th Jun 18, 12:26 PM
    • 30 Posts
    • 5 Thanks
    927
    • #2
    • 28th Jun 18, 12:26 PM
    • #2
    • 28th Jun 18, 12:26 PM
    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
    • #3
    • 28th Jun 18, 3:22 PM
    • #3
    • 28th Jun 18, 3:22 PM
    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
    • By 927 28th Jun 18, 6:09 PM
    • 30 Posts
    • 5 Thanks
    927
    • #4
    • 28th Jun 18, 6:09 PM
    • #4
    • 28th Jun 18, 6:09 PM
    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
    • #5
    • 29th Jun 18, 12:28 PM
    • #5
    • 29th Jun 18, 12:28 PM
    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
    • By 927 29th Jun 18, 2:12 PM
    • 30 Posts
    • 5 Thanks
    927
    • #6
    • 29th Jun 18, 2:12 PM
    • #6
    • 29th Jun 18, 2:12 PM
    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
    • By z1a 29th Jun 18, 5:04 PM
    • 1,385 Posts
    • 1,330 Thanks
    z1a
    • #7
    • 29th Jun 18, 5:04 PM
    • #7
    • 29th Jun 18, 5:04 PM
    Iíve just done my statement of affairs and wondered if anyone could help me with the amounts Iíve put in. They are what I currently spend and I donít know if Iím 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.

    Iím considering bankruptcy (one of the creditors has refused to put account on hold but other three have). Feeling very anxious about all of this. Iím 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[b]
    Originally posted by 927
    Why do you need child care if you're not working?
    • 927
    • By 927 30th Jun 18, 12:25 AM
    • 30 Posts
    • 5 Thanks
    927
    • #8
    • 30th Jun 18, 12:25 AM
    • #8
    • 30th Jun 18, 12:25 AM
    I will need childcare if and when I return to work. I donít currently require it. However to cover debt and all bills I would need to work full time thereby requiring childcare.
    • luvchocolate
    • By luvchocolate 30th Jun 18, 8:34 AM
    • 1,570 Posts
    • 1,427 Thanks
    luvchocolate
    • #9
    • 30th Jun 18, 8:34 AM
    • #9
    • 30th Jun 18, 8:34 AM
    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
    • By 927 2nd Jul 18, 8:42 PM
    • 30 Posts
    • 5 Thanks
    927
    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
    • By Clouds88 4th Jul 18, 10:17 PM
    • 41 Posts
    • 16 Thanks
    Clouds88
    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.
    • Clouds88
    • By Clouds88 4th Jul 18, 10:26 PM
    • 41 Posts
    • 16 Thanks
    Clouds88
    Also if the car is worth £1500 you!!!8217;ll need to sell it anyway and get one under 1,000. I don!!!8217;t see why you wouldn!!!8217;t go bankrupt. They can!!!8217;t take an IPA from benefits but not sure on child maintenance. Someone might be able to advise soon. Even if you did get an IPA it will clear your debt in 3 years which is faster than any other route you could take on that income. Goodluck
    • 927
    • By 927 4th Jul 18, 10:49 PM
    • 30 Posts
    • 5 Thanks
    927
    Thank you Clouds88. Where I live is quite rural hence the car. Arguably I could get a bus to nursery and then walk a while. I completely understand the car may not be considered exempt. I think Iíd read somewhere that if finding future work could be hindered cars might be allowed.

    As for working I look each week at various sites and locally (most employment is either village or a good 15 miles away). However I still have to break even - regardless of where the money comes from I have to be able to pay rent and utilities and I obviously have to factor in childcare costs if Iím to earn enough to pay all bills, childcare and debts. It doesnít balance either way.

    I didnít think I could dispose of any assets prior to bankruptcy anyway? Citizens advice have said I should just offer £1 token payments for a couple years to see if my situation improves. Iím 43 and pretty sure Iíll not earn enough to cover all costs and pay off £27k before Iím 70! Although any tips gratefully received!
    • debt doctor
    • By debt doctor 8th Jul 18, 2:25 PM
    • 4,288 Posts
    • 5,964 Thanks
    debt doctor
    Hi,
    The position of child maintenance as income for an IPA.....

    Section (k) Maintenance payments

    31.7.75 Maintenance payments received by the bankrupt

    The bankrupt may be in receipt of maintenance payments paid by the Child Support Agency (CSA) under the Child Support Act 1991. Any funds paid to him/her in this way fall within the definition of income under the Insolvency Act 1986 Section 310(7) [note 7] and should be included in any calculation for an IPA/IPO. Funds devolve upon the bankrupt when they are paid to him/her by the CSA and therefore should be claimed at that time via an IPA/IPO where this occurs after bankruptcy. Any maintenance payment held as cash in hand or at bank at the date of the bankruptcy order constitutes a vesting asset and should be realised accordingly, this includes arrears of maintenance payments held at the date of bankruptcy. See paragraph 31.7.64 where the arrears are paid after the date of bankruptcy.

    So, The maintenance payment does count as income that an IPA could be taken from - but, only if you have overall spare income more than that needed for your reasonable domestic needs and that is calculated by using the Standard Financial Statement (SFS).

    ************************************************

    With the car, the guideline figure is about £1000, but a car of £1500 may be able to be kept, they might ask you to raise (from friends / family) £200/£300 to keep the car.
    Of course this all assumes that you can demonstrate a NEED for the car, and at the moment you are not working and so do not need child care. You can argue a need for a car other than work or child care (perhaps long trips to school etc) but it is risky and different examiners make different decisions.

    **************************************************

    With your SOA, it has already been said that it needs to reflect your position NOW and then can be adjusted later if you start work. Most of your expenses are perfectly reasonable.
    I note your comments in your PM to me from your local Citizens Advice about your SOA - and I'm sad to say that my view is that they are wrong on every count.

    I would put £100pm more on to your groceries, and I would put £60pm in to entertainment / leisure (replacing the child care effectively).

    If your car was dis-allowed - what would your public transport costs be? Bus, taxi, other?

    Please get back to me/us with any further comments on here.

    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 ***
    • 927
    • By 927 8th Jul 18, 9:52 PM
    • 30 Posts
    • 5 Thanks
    927
    Thank you so much.

    Re child maintenance - this is not paid into my bank. Itís cash normally. And isnít always on time/regular.

    Re car - my son goes to nursery as part of the 15 hours funded so I donít pay for that currently. I (wrongly) thought most children were encouraged to attend nursery prior to school. I fully intend to return to work part time once he has started school and that would be hindered if I didnít have a car. There are few jobs in the rural town I live in and without transport Iíd have to rely on buses - few and far between where I live. Which would be costly and in turn mean I would need childcare in the form of before and after school clubs/childminder. Another poster said take the poor condition value of the car from Parkerís and use that (it does need two tyres soon, the electrics donít work, ding in bumper and chips in windscreen etc) and this would be £840. I know getting rid of assets at less than market value is a no no but if I sell it to family for market value then can I continue to use it?

    Should I suppose that my SFS should balance with my income? In that if it exceeded it Iíd be penalised? Groceries are at £440 averaged over12 months but I assumed that would be frowned upon and so I should put a lower figure in.

    Itís so confusing to know what is right.
    • debt doctor
    • By debt doctor 8th Jul 18, 10:02 PM
    • 4,288 Posts
    • 5,964 Thanks
    debt doctor
    Nothing wrong with groceries at £440 pm.
    Also nothing wrong with a negative SFS, so long as you qualify it by saying "I am reducing my housekeeping costs below a reasonable level to make this budget balance".

    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 ***
    • 927
    • By 927 16th Jul 18, 4:53 PM
    • 30 Posts
    • 5 Thanks
    927
    Comments gratefully received please!

    Iíve redone my SOA and moved child swimming lessons into entertainment. Upped groceries to reflect what is actually being spent currently (or averaged over 12 months although I think some toys/presents are included in this amount).

    I havenít received maintenance this month so my parents will help again. Do I still include this in my calculations? My ex who lives some 90 miles away is now requesting I share the travel to his. This is a 180 mike round trip for me and would cost £55-£60 twice a month by unlicensed transport. Iíd end up paying more a month on public transport than using the car.

    Parents have offered to buy car so I have fees for bankruptcy and I can then still use it. Is this normally agreeable to the OR. Do I have to inform them this is what Iíll be doing as obviously some of my budget will still have to be used for fuel/insurance/car tax? Iíve noted comments regarding me not needing the car although Iíd still need public transport right?

    ont=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............................. 35
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 28
    Telephone (land line)................... 0
    Mobile phone............................ 24
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 10
    Internet Services....................... 25
    Groceries etc. ......................... 440
    Clothing................................ 45
    Petrol/diesel........................... 90
    Road tax................................ 17.5
    Car Insurance........................... 38
    Car maintenance (including MOT)......... 20
    Car parking............................. 10
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    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)...... 15
    Haircuts................................ 20
    Entertainment........................... 60
    Holiday................................. 20
    Emergency fund.......................... 30
    Total monthly expenses.................. 1881.87

    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 840
    Other assets............................ 0
    Total Assets............................ 840

    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
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