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SOA help

Mrhuk
Mrhuk Posts: 28 Forumite
10 Posts First Anniversary
edited 11 January 2019 at 11:59AM in Bankruptcy & living with it
Hi all,

Below is my SOA, I'm looking for genal advice on whether IVA or BR is best route for me to take.

I haven't added my partner's debt which totals £378 p/m, also I've included my average overtime in my incoming but that is different each week

It's not as bad as what most people are but having lived in debt since I was 16 and now 34 I'd like to be able to provide a better life for my family in the future

Thank you

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.................... 0

Monthly Income Details

Monthly income after tax................ 1780
Partners monthly income after tax....... 850
Benefits................................ 127
Other income............................ 0
Total monthly income.................... 2757


Monthly Expense Details

Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 520
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 63
Gas..................................... 0
Oil..................................... 0
Water rates............................. 18
Telephone (land line)................... 25
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 40
Petrol/diesel........................... 100
Road tax................................ 2
Car Insurance........................... 39
Car maintenance (including MOT)......... 15
Car parking............................. 15
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 15
Holiday................................. 45
Emergency fund.......................... 25
CTF..................................... 30
Total monthly expenses.................. 1765



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
Credit union ..................23221.....399.......0
Credit card....................4898......98........0
Credit card....................3842......87........0
Omni capital...................332.......12........0
Overdraft......................700.......8.........0
Store card.....................408.......17........0
Credit card....................3408......78........0
Total unsecured debts..........36809.....699.......-



Monthly Budget Summary

Total monthly income.................... 2,757
Expenses (including HP & secured debts). 1,765
Available for debt repayments........... 992
Monthly UNsecured debt repayments....... 699
Amount left after debt repayments....... 293


Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -36,809
Net Assets.............................. -36,809

Comments

  • Mrhuk
    Mrhuk Posts: 28 Forumite
    10 Posts First Anniversary
    Sorry I've had to readjust it as I got some of it wrong

    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.................... 0

    Monthly Income Details

    Monthly income after tax................ 1780
    Partners monthly income after tax....... 825
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2605


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 58
    Rent.................................... 520
    Management charge (leasehold property).. 0
    Council tax............................. 137
    Electricity............................. 63
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 18
    Telephone (land line)................... 0
    Mobile phone............................ 53
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 25
    Groceries etc. ......................... 450
    Clothing................................ 50
    Petrol/diesel........................... 120
    Road tax................................ 2
    Car Insurance........................... 39
    Car maintenance (including MOT)......... 15
    Car parking............................. 15
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 50
    Medical (prescriptions, dentist etc).... 25
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 8
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 30
    Entertainment........................... 15
    Holiday................................. 45
    Emergency fund.......................... 25
    (Unnamed monthly expense)............... 0
    CTF..................................... 30
    Total monthly expenses.................. 1866



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 1732.....(58).......0
    Total secured & HP debts...... 1732......-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Credit union ..................23221.....399.......0
    Credit card....................4898......98........0
    Credit card....................3842......87........0
    Overdraft......................700.......8.........0
    Store card.....................408.......17........0
    Credit card....................3408......78........0
    Total unsecured debts..........36477.....687.......-



    Monthly Budget Summary

    Total monthly income.................... 2,605
    Expenses (including HP & secured debts). 1,866
    Available for debt repayments........... 739
    Monthly UNsecured debt repayments....... 687
    Amount left after debt repayments....... 52


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -1,732
    Total Unsecured debt.................... -36,477
    Net Assets.............................. -38,209
  • Craig1981
    Craig1981 Posts: 769 Forumite
    Third Anniversary
    is the debt solely in your name, or have you listed any joint debts in your SOA? if all in your name only, then bankruptcy would be your best option - you have no excess income or mortgage for an IVA to be a possibility
    are the children still dependant children?

    the SOA may need to be jigged a little - personally i believe mobile phone, haircuts, holiday and entertainment can be reduced, but that is my opinion. other than that, it seems to be a good starting point.

    you also state your partners income of £850.00 - and debt repayment is £398... that says their debt is pretty high as well, and even with your debt gone, 20% payment on unsecured debt in a household, IMO, is high. you may want to consider both doing a fresh start
  • Mrhuk
    Mrhuk Posts: 28 Forumite
    10 Posts First Anniversary
    edited 12 January 2019 at 12:00PM
    Thank you for your reply,

    The debt listed is solely in my name and children are still dependants as well one of which is autistic and wife is gluten intolerant.

    The mobile phone part is for mine, my daughter's and wife's phones, the hair cuts are £25 for 2 daughters and then the wife's is about the same each time and mine is £5 a go, the car listed isn't mine although I have use of it I rarely use it as the wife does school runs, uses it for commuting etc whereas I either use a work van, lift or bus to get to work and back.

    We have considered the possibility of us both doing it but looking for ways to avoid it if possible.

    Here's my updated SOA which is as accurate as I can get

    TIA

    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

    Monthly Income Details

    Monthly income after tax................ 1780
    Partners monthly income after tax....... 700
    Benefits................................ 137
    Other income............................ 0
    Total monthly income.................... 2617


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 58
    Rent.................................... 520
    Management charge (leasehold property).. 0
    Council tax............................. 137
    Electricity............................. 63
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 18
    Telephone (land line)................... 0
    Mobile phone............................ 53
    TV Licence.............................. 13
    Satellite/Cable TV...................... 15
    Internet Services....................... 25
    Groceries etc. ......................... 600
    Clothing................................ 50
    Petrol/diesel........................... 120
    Road tax................................ 2
    Car Insurance........................... 45
    Car maintenance (including MOT)......... 50
    Car parking............................. 15
    Other travel............................ 24
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 35
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 8
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 30
    Entertainment........................... 30
    Holiday................................. 50
    Emergency fund.......................... 15
    School dinners ......................... 86
    Children's swimming..................... 45
    CTF..................................... 30
    Total monthly expenses.................. 2187



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 3000
    Other assets............................ 0
    Total Assets............................ 3000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 1732.....(58).......0
    Total secured & HP debts...... 1732......-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Credit union ..................23221.....399.......0
    Credit card....................4898......98........0
    Credit card....................3842......87........0
    Overdraft......................700.......8.........0
    Store card.....................408.......17........0
    Credit card....................3408......78........0
    Total unsecured debts..........36477.....687.......-



    Monthly Budget Summary

    Total monthly income.................... 2,617
    Expenses (including HP & secured debts). 2,187
    Available for debt repayments........... 430
    Monthly UNsecured debt repayments....... 687
    Amount short for making debt repayments. -257


    Personal Balance Sheet Summary
    Total assets (things you own)........... 3,000
    Total HP & Secured debt................. -1,732
    Total Unsecured debt.................... -36,477
    Net Assets.............................. -35,209
  • Mrhuk
    Mrhuk Posts: 28 Forumite
    10 Posts First Anniversary
    Also my overtime is going to drop within 4 weeks and that'll reduce my pay by £100, and currently my water and electricity bills are due to go up as I was overpaying them, do I leave it at what I'm paying now or adjust to what I'm expecting it to go up to or will that flag up when they check my bank statements?
  • debt_doctor
    debt_doctor Posts: 4,595 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    A couple of years ago the Insolvency Service adopted the Standard Financial Statement (SFS) to calculate surplus monies for an IPA. In many ways this was better for the bankrupt as the expenditure allowances were greater than the formerly used Household Expenditure Survey.

    But rightly or wrongly, the IS are asking for full income of bankrupt and non bankrupt partner - putting the full family expense allowances (if claimed) including children etc in to the SFS - then if it shows a surplus, they pro rata the surplus to get the bankrupts expected IPA payment.

    In addition to this, the Technical manual (public version) has not been updated for more than 2 years.

    It is also a very valid point that a non bankrupt has to be able to pay their own contractual payments to any commitments they may have (which would be in the SFS).

    The issue comes from pure surplus income - If the non bankrupt has a large genuinely surplus income it will influence the couples total surplus income and therefore the pro rata calculation on the surplus will make the bankrupts IPA larger.

    Is this approach right? It's certainly different. Ultimately a court can decide.

    The above is something I have quoted before. If, using the calculation method above, if the no bankrupt has their own financial commitments then these must be placed in to the calculation.

    There is never a case for an IPA whereby it would force the non bankrupt partner in to default and therefore insolvency.

    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 ***
  • Mrhuk
    Mrhuk Posts: 28 Forumite
    10 Posts First Anniversary
    .The above is something I have quoted before. If, using the calculation method above, if the no bankrupt has their own financial commitments then these must be placed in to the calculation.

    Thank you for the info DD

    Am I right in thinking that on the SOA my partner's income should be minus her financial commitments which leaves just her contribution to the household expenses?
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