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  • FIRST POST
    • Reeseh
    • By Reeseh 7th Aug 18, 1:17 PM
    • 4Posts
    • 1Thanks
    Reeseh
    SOA Advice
    • #1
    • 7th Aug 18, 1:17 PM
    SOA Advice 7th Aug 18 at 1:17 PM
    Hi


    I am seriously considering bankruptcy with around 30k of debt, my wife will not be going bankrupt. Could I please get some guidence/advice with my SOA?


    Thanks


    **EDITED AS SUGGESTED**



    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1 (I financed car on behalf of wife when she passed test, as I am higher earner. V5 was in my name until recently, she has been making finance payments for it and she is insured as main driver - I have always had company vehicles)

    Monthly Income Details

    Monthly income after tax................ 2200
    Partners monthly income after tax....... 1750
    Benefits................................ 0
    Other income............................ 148

    Total monthly income.................... 4098

    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 950
    Management charge (leasehold property).. 0
    Council tax............................. 124
    Electricity............................. 100
    Gas..................................... 100
    Oil..................................... 0
    Water rates............................. 67
    Telephone (land line)................... 0
    Mobile phone............................ 90
    TV Licence.............................. 13
    Satellite/Cable TV...................... 56
    Internet Services....................... 56
    Groceries etc. ......................... 565
    Clothing................................ 70
    Petrol/diesel........................... 310
    Road tax................................ 16
    Car Insurance........................... 75
    Car maintenance (including MOT)......... 25
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 300
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 40
    Pet insurance/vet bills................. 16
    Buildings insurance..................... 0
    Contents insurance...................... 22
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 30
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 40
    Wife's personal financial commitments... 400 (I am assuming she can continue with her commitments as she is not going bankrupt)
    Dry Cleaning............................ 20
    Pocket Money............................ 24
    Swimming Lessons........................ 44
    School Lunches.......................... 40
    Work lunch (x 2 @ 3 per day)........... 120

    Total monthly expenses.................. 3843


    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
    Multiple debts, totalling approx 30k
    Total unsecured debts..........30000

    Monthly Budget Summary

    Total monthly income.................... 4,098
    Expenses (including HP & secured debts). 3,843
    Available for debt repayments........... 255
    Total Unsecured debt.................... -30,000

    Net Assets.............................. -30,000



    Last edited by Reeseh; 07-08-2018 at 2:55 PM.
Page 1
    • Willing2Learn
    • By Willing2Learn 7th Aug 18, 1:27 PM
    • 1,585 Posts
    • 1,207 Thanks
    Willing2Learn
    • #2
    • 7th Aug 18, 1:27 PM
    • #2
    • 7th Aug 18, 1:27 PM
    You spend a HUGE amount on groceries. Maybe change to shopping at Lidl or Aldi.

    Where is the bottom of form, the listing debts, assets, income less outgoings less debt equals XXXX to pay off debt??
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Smellyonion
    • By Smellyonion 7th Aug 18, 1:28 PM
    • 136 Posts
    • 85 Thanks
    Smellyonion
    • #3
    • 7th Aug 18, 1:28 PM
    • #3
    • 7th Aug 18, 1:28 PM
    What are your debts?


    Your Gas, Elec, mobiles, Sky, groceries, presents, school/work meals are all very excessive.
    • Reeseh
    • By Reeseh 7th Aug 18, 1:48 PM
    • 4 Posts
    • 1 Thanks
    Reeseh
    • #4
    • 7th Aug 18, 1:48 PM
    • #4
    • 7th Aug 18, 1:48 PM
    Our weekly shop is around 125/130


    We pay British Gas around 200 per month for combined gas and electric


    Not much we can do about our mobiles, got them in April as upgrade so tied in 45 each (including device cost of about 30 and airtime of 15)


    School meals are 10 per week, work lunches are 3 each per day = 40 per week




    I am after genuine advice from someone experienced as to whether or not this would be accepted?


    I have numerous unsecured debts totalling around 30k
    • DCFC79
    • By DCFC79 7th Aug 18, 2:01 PM
    • 32,745 Posts
    • 20,615 Thanks
    DCFC79
    • #5
    • 7th Aug 18, 2:01 PM
    • #5
    • 7th Aug 18, 2:01 PM
    OP

    Just fill out the form, click on the 'format for MSE' button at the bottom and post it up here (thanks to Willing2Learn for the quote)



    http://www.stoozing.com/calculator/soa.php
    Last edited by DCFC79; 07-08-2018 at 2:06 PM.
    • Craig1981
    • By Craig1981 7th Aug 18, 4:10 PM
    • 342 Posts
    • 157 Thanks
    Craig1981
    • #6
    • 7th Aug 18, 4:10 PM
    • #6
    • 7th Aug 18, 4:10 PM
    IMHO, you need more budgeting advice and how to save money on normal day to day living

    200 gas and electric is excess, nearly double to normal family of 4
    lunches at 160 a month - what ever happened to a packed lunch?
    what mobile devices are they? may be done as assets based on their values - you are not allow to play favourites with your creditors, and this type of mobile contract, i believe, is just that

    as all have said, post up list of your debts and balances and someone will be better equipped to give you an answer

    IMHO, i do not believe that this will be accepted as a lot of your expenses are high, but, you need to speak to Stepchange or Payplan to definitive answers
    • Mnd
    • By Mnd 7th Aug 18, 4:11 PM
    • 742 Posts
    • 904 Thanks
    Mnd
    • #7
    • 7th Aug 18, 4:11 PM
    • #7
    • 7th Aug 18, 4:11 PM
    You should cancel sky now. Tell them you can't afford it

    Read last line of smelly onions advice and take that on board

    Read some of the threads of the DFW and DFD boards, they are people in far worse positions than you who are tackling their debts without bankruptcy.

    However, you need to find out why you got to this position and make the necessary changes to your lifestyle to stop it happening again

    Good luck
    • Mnd
    • By Mnd 7th Aug 18, 4:17 PM
    • 742 Posts
    • 904 Thanks
    Mnd
    • #8
    • 7th Aug 18, 4:17 PM
    • #8
    • 7th Aug 18, 4:17 PM
    Couple of other thoughts, although we have no children , we couldn't spend 100 a week on groceries if we tried.. 40 and we say that was a lot this week
    What are you heating with your power bills..we pay 65 a month gas and electric combined.

    If you posted on the debt free wannabe board you will get much more advice
    • madvicker
    • By madvicker 7th Aug 18, 4:39 PM
    • 144 Posts
    • 100 Thanks
    madvicker
    • #9
    • 7th Aug 18, 4:39 PM
    • #9
    • 7th Aug 18, 4:39 PM
    Hi

    **EDITED AS SUGGESTED**



    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1 (I financed car on behalf of wife when she passed test, as I am higher earner. V5 was in my name until recently, she has been making finance payments for it and she is insured as main driver - I have always had company vehicles)

    Monthly Income Details

    Monthly income after tax................ 2200
    Partners monthly income after tax....... 1750
    Benefits................................ 0
    Other income............................ 148

    Total monthly income.................... 4098

    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 950
    Management charge (leasehold property).. 0
    Council tax............................. 124
    Electricity............................. 100 How much?? You shouldn't need to spend more than 50 each for Gas and Electricity, unless you're in debt with suppplier
    Gas..................................... 100
    Oil..................................... 0
    Water rates............................. 67 Again, how much?? I pay 13 a month between 2 adults (one who enjoys several baths) Have you got a water meter installed?
    Telephone (land line)................... 0
    Mobile phone............................ 90 Excessive - especially if you are considering bankruptcy
    TV Licence.............................. 13
    Satellite/Cable TV...................... 56 Is this combined with internet or do you pay 112 for tv and internet? Again, excessive
    Internet Services....................... 56
    Groceries etc. ......................... 565 Have you tried cutting this down? Shop at Aldi or Lidl if you need. Further, put your lunches in here and start making packed lunches as others have suggested
    Clothing................................ 70
    Petrol/diesel........................... 310
    Road tax................................ 16
    Car Insurance........................... 75 High. When was the last time you did a comparison on this?
    Car maintenance (including MOT)......... 25
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 300
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 40
    Pet insurance/vet bills................. 16
    Buildings insurance..................... 0
    Contents insurance...................... 22
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 30
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 40
    Wife's personal financial commitments... 400 (I am assuming she can continue with her commitments as she is not going bankrupt)
    Dry Cleaning............................ 20
    Pocket Money............................ 24
    Swimming Lessons........................ 44
    School Lunches.......................... 40 See comments about lunches above
    Work lunch (x 2 @ 3 per day)........... 120 See comments about lunches above

    Total monthly expenses.................. 3843


    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
    Multiple debts, totalling approx 30k
    Total unsecured debts..........30000
    You need to list each of your debts here one after the other
    Monthly Budget Summary

    Total monthly income.................... 4,098
    Expenses (including HP & secured debts). 3,843
    Available for debt repayments........... 255
    Total Unsecured debt.................... -30,000

    Net Assets.............................. -30,000



    Originally posted by Reeseh
    Your debt pile is certainly not unmanageable. I don't see you being able to get bankruptcy - a Debt Management Plan potentially.. You could easily free up around 500 a month as a conservative estimate if you knuckled down on your spending.
    • Willing2Learn
    • By Willing2Learn 7th Aug 18, 4:47 PM
    • 1,585 Posts
    • 1,207 Thanks
    Willing2Learn
    You are having real problems budgeting responsibly. Take a look at the MSE Article: The Budget Planner - How to manage your money. Pay particular attention to the free budget planner spreadsheet. Budgeting effectively could really change things around for you.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • TheGardener
    • By TheGardener 7th Aug 18, 9:32 PM
    • 2,443 Posts
    • 2,375 Thanks
    TheGardener
    Although there are some great suggestions for better budgeting (and boy do you need them OP..!) The OR wants an SOA that reflects current spending - its part of how they understand how the BR came about.

    Based on what both of you earn the OR will probably expect you to pay around 55% of all the expenditure and your wife around 45% - unfortunately the OR will not be concerned about your wife's debts.

    Your rent is very high so can we assume you live in the south east/London? If not and the rent is very high for your area (round my way you could get a 5 bed mansions for that kind of rent) then the OR may challenge the cost.

    Even in London water doesn't cost that much unless you have a water meter and a massive leak or you are filling a swimming pool - the OR will be surprised.
    If however, you have historical debt with any of your utilities - and the extortionate amount you pay for water, gas and electric suggests you do -then these debts will fall into the BR if they are in your name - if they are in your wifes name then you are stuck with them.

    Try and do the maths on what 55% of the household expenditure looks like and if you have any 'surplus' on your salary then the OR will look to claim this in an IPA. If you are not paying into a works pension - and you do have a surplus on paper - now is the time to join the works pensions scheme.
    Last edited by TheGardener; 08-08-2018 at 8:45 AM.
    • Craig1981
    • By Craig1981 8th Aug 18, 5:28 AM
    • 342 Posts
    • 157 Thanks
    Craig1981

    Your rent is very high so can we assume you live in the south east/London? If not and the rent is very high for your area (round my way you could get a 5 bed mansions for that kind of rent) then the OR may challenge the cost.
    Originally posted by TheGardener
    not just london...I live in the southwest, and that is the going rent for a 3 bed place, if you lucky and water down here is nearly double what is in other areas
    • TheGardener
    • By TheGardener 8th Aug 18, 7:34 AM
    • 2,443 Posts
    • 2,375 Thanks
    TheGardener
    not just london...I live in the southwest, and that is the going rent for a 3 bed place, if you lucky and water down here is nearly double what is in other areas
    Originally posted by Craig1981
    Fair enough on the rents - but the most expensive water in the country (Wessex I believe?) isn't as much as the OP is paying, I think there is probably a historical debt on the account.
    • Craig1981
    • By Craig1981 8th Aug 18, 7:46 AM
    • 342 Posts
    • 157 Thanks
    Craig1981
    Fair enough on the rents - but the most expensive water in the country (Wessex I believe?) isn't as much as the OP is paying, I think there is probably a historical debt on the account.
    Originally posted by TheGardener
    probably right, but, South west water i do believe is the most expensive - family of 4 on metered supply we pay upwards of 80 a month. High rent, high water, but mediocre wages!
    • TheGardener
    • By TheGardener 8th Aug 18, 8:56 AM
    • 2,443 Posts
    • 2,375 Thanks
    TheGardener
    Looking again at the SOA - to be fair the OP - if they made some big changes to their budget - and there is plenty of room to do so - then with their combined income, BR may not be best option - there is room for them to get out of this debt if they put a proper plan into action and I think its manageable within 6 years.

    OP - have you tried using the online Stepchange Debt remedy tool as a guide to your starting point?
    • Smellyonion
    • By Smellyonion 8th Aug 18, 9:18 AM
    • 136 Posts
    • 85 Thanks
    Smellyonion
    Looking again at the SOA - to be fair the OP - if they made some big changes to their budget - and there is plenty of room to do so - then with their combined income, BR may not be best option - there is room for them to get out of this debt if they put a proper plan into action and I think its manageable within 6 years.

    OP - have you tried using the online Stepchange Debt remedy tool as a guide to your starting point?
    Originally posted by TheGardener

    This.


    Based on the income, it seems fixable with some serious changes without going through the bankruptcy route. Combined income seems to be around 60k gross? Your total debt is 30K, 50% of gross income or 62% of net income. Those are not stark figures.


    Your rent is high but less than 25% of takehome pay, so again - not a disaster. You need to ask yourself where this 3k after rent and council tax is going.






    • Mnd
    • By Mnd 8th Aug 18, 1:11 PM
    • 742 Posts
    • 904 Thanks
    Mnd
    The 3 bed semi next to us is 950 a month and we are a small town in Wiltshire
    • Reeseh
    • By Reeseh 8th Aug 18, 2:51 PM
    • 4 Posts
    • 1 Thanks
    Reeseh
    Thanks all


    I got some of the figures from spreadsheets that we have used for tracking our bills, vast majority of them come out of my wife's account.


    I will get some more figures, if I am wrong - although the water is definitely 67 per month as we apparently underpaid last year according to thir estimated cost (we are on a meter).


    I live in Northampton and, to be honest was shocked at the rent myself. We were paying 725 a couple of years ago for a 3 bed house, moved to a "friend's" house for 650, he wasn't paying the mortgage so it got repossessed and all we could find was houses around this budget. It is become alot more popular for London communters to move here, guess that's why the prices have suddenly jumped.


    I have been ringing round the companies I owe money to this morning to get accurate balances - I owe 36,470 and pay 1,134 per month towards them, 133 of that through Stepchange the rest being paid direct to lenders (credit card, family loan, overdrafts, payday loans).


    I am well aware that I have budgeting issues, to be honest I have issues full stop that have made me bury my head in the sand but it is all getting too much for me now. I've managed to just about scrape through the last couple of months by selling things on ebay that I no longer need as I shut my business down to take a full time job (I am not earning as well but have the guarantees of full time work at a huge multinational company rather than contracting to other companies).
    • Craig1981
    • By Craig1981 8th Aug 18, 4:22 PM
    • 342 Posts
    • 157 Thanks
    Craig1981
    I am well aware that I have budgeting issues, to be honest I have issues full stop that have made me bury my head in the sand but it is all getting too much for me now. I've managed to just about scrape through the last couple of months by selling things on ebay that I no longer need as I shut my business down to take a full time job (I am not earning as well but have the guarantees of full time work at a huge multinational company rather than contracting to other companies).
    Originally posted by Reeseh
    Well, you have taken first steps in trying to remedy that by doing an SOA (although high), and post and reply on this forum - it shows you want to sort things out, so keep at it

    is your employment financial one? if so, you may have some issues with regarding bankruptcy or insolvency in general - would check up with your contract.

    as you are dealing with Step change already, speak to them again to see regarding additional help with your other debtors...

    iv'e been there, initially its hard work and seems like never ending, but keep at it and it and the hard work will pay off!
    • TheGardener
    • By TheGardener 8th Aug 18, 9:19 PM
    • 2,443 Posts
    • 2,375 Thanks
    TheGardener
    Great start Reeseh

    Admitting and facing spiralling debt is often the worst bit - this is you climbing back into the driving seat.

    BR will trash your credit rating for 6 years (and that's assuming squeaky clean financial management post BR) and with your income, you mayhave an IPA to pay for 3 years anyway so if you can make the changes and clear the debts - making some full and final offers etc in less than 6 years then BR isn't necessarily the best way forward. If you work in any part of the financial sector/police/teaching then you will need to make sure your employment won't be affected by bankrupcy.

    So are all the utility bills in your wifes name or yours?
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