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  • FIRST POST
    • Live more work less
    • By Live more work less 11th Apr 19, 6:48 PM
    • 6Posts
    • 0Thanks
    Live more work less
    SOA and can i do this by myself?
    • #1
    • 11th Apr 19, 6:48 PM
    SOA and can i do this by myself? 11th Apr 19 at 6:48 PM
    Hi
    Got myself into debt and now starting to default on payments. Need a fresh start as spent far to much of my time worrying about debt. Any help is much appreciated! Been reading this forum and have prepared a statement of affairs. Can i apply to be bankrupt myself or do i need a charity/organisation to do this for me? How long does it take to process bankruptcy? anything wrong with my statement of affairs? maybe mobile looks expensive, its 8 daughter and 35 each for me and partner.


    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 788.16
    Partners monthly income after tax....... 880
    Benefits................................ 82
    Other income............................ 0
    Total monthly income.................... 1750.16


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 322
    Management charge (leasehold property).. 0
    Council tax............................. 119
    Electricity............................. 59
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 75
    Telephone (land line)................... 0
    Mobile phone............................ 78
    TV Licence.............................. 12
    Satellite/Cable TV...................... 46
    Internet Services....................... 0
    Groceries etc. ......................... 500
    Clothing................................ 80
    Petrol/diesel........................... 75
    Road tax................................ 20
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 30
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 30
    Pet insurance/vet bills................. 20
    Buildings insurance..................... 0
    Contents insurance...................... 11
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 20
    Entertainment........................... 30
    Holiday................................. 25
    Emergency fund.......................... 25
    School dinner money..................... 40
    Total monthly expenses.................. 1752



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 800


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    lloyds loan....................8200......0.........0
    lloyds CC......................8500......0.........0
    sainsburys cc..................3000......0.........0
    lloyds overdraft...............200.......0.........0
    Tax............................8000......0........ .0
    Vat............................3300......0........ .0
    Total unsecured debts..........31200.....0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,750.16
    Expenses (including HP & secured debts). 1,752
    Available for debt repayments........... -1.84
    Monthly UNsecured debt repayments....... 0
    Amount short for making debt repayments. -1.84


    Personal Balance Sheet Summary
    Total assets (things you own)........... 800
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -31,200
    Net Assets.............................. -30,400


    Also will i be asked why i got into soo much debt? Is there anything i should or shouldn't say to the OR?
    i was self employed on good money but due to poor health now work for an agency 3 days a week

    Once again thanks for any advice, its forums like this that makes me feel there is a way out of the mess i have created.
Page 1
    • TheGardener
    • By TheGardener 11th Apr 19, 7:10 PM
    • 2,742 Posts
    • 2,764 Thanks
    TheGardener
    • #2
    • 11th Apr 19, 7:10 PM
    • #2
    • 11th Apr 19, 7:10 PM
    Hi and welcome

    Yes - you can do this yourself - most people do, you don't need a charity to do it for you. However, we always advise that you take free professional advice from one of the debt charities before you take the plunge. Stepchange, National Debtline or CAB (If your local CAB has good debt advice volunteers, my local CAB wasn't much help with debt but they have an excellent reputation locally for housing advice)

    Your SoA looks fine to me - I would not expect a family on your income to get an IPA, if you do then come back here and ask for help before you sign/agree to it.

    Have you read the stickies at the top of this board about bank accounts and making sure you sever any financial links like joint accounts before you submit the form etc?
    • Live more work less
    • By Live more work less 11th Apr 19, 7:42 PM
    • 6 Posts
    • 0 Thanks
    Live more work less
    • #3
    • 11th Apr 19, 7:42 PM
    • #3
    • 11th Apr 19, 7:42 PM
    Thanks for the reply, i will have a read of the stickies.

    We have no joint accounts, i did inquire at the CAB and they have a 4 week waiting list. i,forgot to put in the SOA i had 2 credit cards about 10 years ago that i owe about 4k on. i moved house and forgot to tell them. how would i get this included in the bankruptcy? do i have to do a credit report to check how much i owe and to who (they may have sold the debt)?
    • TheGardener
    • By TheGardener 12th Apr 19, 6:02 AM
    • 2,742 Posts
    • 2,764 Thanks
    TheGardener
    • #4
    • 12th Apr 19, 6:02 AM
    • #4
    • 12th Apr 19, 6:02 AM
    Yes, I know local CABs can be busy. All the charities have good websites and some have phone lines.

    For Bankruptcy, you just need to provide as much info as you have to hand, any old historical debts will be included regardless of whether you specifically name them if they are eligible (i.e not student loans, CSA payments, court fines etc)
    • TimeToRebuild
    • By TimeToRebuild 12th Apr 19, 7:38 AM
    • 36 Posts
    • 21 Thanks
    TimeToRebuild
    • #5
    • 12th Apr 19, 7:38 AM
    • #5
    • 12th Apr 19, 7:38 AM
    First of all well done for taking the first step and reaching out to this board.

    The people on this forum are extremely knowledgeable and non judgmental and will make the process a lot easier.

    I went bankrupt in December 2017 and Discharged December 2018, it seems like right now there is no escape but it gets so much better.

    1 rule, don't lie! just be honest, the OR Interview can seem daunting however they just need information, they will ask how you got into this position and what caused it, your case seems pretty simple, brought in good money, lived the lifestyle of your income, then lost the income, they won't judge.

    I wont lie its a hard process and mentally draining but someone who has made it out the other end, it was the best decision i made.

    Good Luck!
    • KeepOnKnitting
    • By KeepOnKnitting 12th Apr 19, 8:26 AM
    • 219 Posts
    • 392 Thanks
    KeepOnKnitting
    • #6
    • 12th Apr 19, 8:26 AM
    • #6
    • 12th Apr 19, 8:26 AM
    I am very far from being an expert on these matters, but you appear to have a very low income for two adults and one child. Are you getting all the benefits that you are entitled to? I worry that you could end up back in debt.
    Save 12k in 2019 #43
    • Live more work less
    • By Live more work less 12th Apr 19, 1:01 PM
    • 6 Posts
    • 0 Thanks
    Live more work less
    • #7
    • 12th Apr 19, 1:01 PM
    • #7
    • 12th Apr 19, 1:01 PM
    I am very far from being an expert on these matters, but you appear to have a very low income for two adults and one child. Are you getting all the benefits that you are entitled to? I worry that you could end up back in debt.
    Originally posted by KeepOnKnitting
    Hi thanks for the heads up, i did i benefit check and we are entitled to 20.90 a week tax credit. which will leave 19 to pay debts, so hopefully still qualify for bankruptcy. was looking at my SOA and some things are paid monthly and some 4 weekly will the OR examine these figures and find an extra few pounds to make me pay an IPA?

    I just want to double check and get things right first time
    • BoGoF
    • By BoGoF 12th Apr 19, 1:08 PM
    • 4,240 Posts
    • 3,769 Thanks
    BoGoF
    • #8
    • 12th Apr 19, 1:08 PM
    • #8
    • 12th Apr 19, 1:08 PM
    Hi thanks for the heads up, i did i benefit check and we are entitled to 20.90 a week tax credit. which will leave 19 to pay debts, so hopefully still qualify for bankruptcy. was looking at my SOA and some things are paid monthly and some 4 weekly will the OR examine these figures and find an extra few pounds to make me pay an IPA?

    I just want to double check and get things right first time
    Originally posted by Live more work less
    Would receipt of tax credits qualify your child for free school meals.

    As a general note 500 seems high for groceries for 2 adults and 1 child. We are a family of 4 and spend about 400
    • ToxtethO'Grady
    • By ToxtethO'Grady 12th Apr 19, 1:39 PM
    • 215 Posts
    • 106 Thanks
    ToxtethO'Grady
    • #9
    • 12th Apr 19, 1:39 PM
    • #9
    • 12th Apr 19, 1:39 PM
    You have 2 debts with HMRC on your SOA.


    Tax............................8000......0........ .0
    Vat............................3300......0........ .0


    Are you self-employed (sole trader/ partner/ director)?


    If so BR could have a big impact on your business, you may also be given a bankruptcy restriction due to your debts with HMRC. This could extend the time you show as a bankrupt on the Insolvency Register for longer than the usual 15 months. Your debts are still written off after a year you'd just be showing/ classed as a undischarged BR for 2-15 years.


    If you are self-employed the best people to get advice from are https://www.businessdebtline.org/
    • TheGardener
    • By TheGardener 12th Apr 19, 2:12 PM
    • 2,742 Posts
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    TheGardener
    On such a low income - even with extra benefits - you should not get an IPA - if you do it will be outrageous and you must come back here and let us know as the IPA can be challenged.
    • Clouds88
    • By Clouds88 12th Apr 19, 2:47 PM
    • 167 Posts
    • 162 Thanks
    Clouds88
    It might be worth looking at UC if you can get it in your area. I took home the same pay as you both combined last month and would have still got an additional 355 based on the housing costs in my area being 550 from the council and having one child.
    • Clouds88
    • By Clouds88 12th Apr 19, 2:53 PM
    • 167 Posts
    • 162 Thanks
    Clouds88
    Having said that I’ve just done some quick maths and based on your rent and income it’s coming out at about 197 a month UC so might be a worth looking into, that’s more than double the quoted tax credits, but is based on a month to month income, if you regularly earn more than stated above then it will go down. Hope this helps
    • Live more work less
    • By Live more work less 12th Apr 19, 4:30 PM
    • 6 Posts
    • 0 Thanks
    Live more work less
    I put all the relevant details into a benefits calculator and 21 tax credit was what I could claim.

    I was self employed but no longer have that business. Never going to be self employed again so that's not a problem.

    My daughter is 12, eats like an adult and drinks about a bath full of milk a week! we have 2 cats to feed and the 500 includes all toiletries, make up and household cleaning products. Will the OR say this is too much?

    I will keep on this forum through the whole process and appreciate the time everyone takes to help me out of this mess.

    Had a family walk along the beech today and felt for the first time in years the debt weight starting to fall of my shoulders :-)
    • broaps
    • By broaps 12th Apr 19, 7:33 PM
    • 89 Posts
    • 59 Thanks
    broaps
    Hi there, don't worry about 500 for food and toiletries, and you could maybe get away with a bit more. We put down 457 for 2 oaps and the OR didn't mention it at all. You need to be a bit generous on your soa so that you keep some flexibilty in your budget. Your every day shop could cost less but there may be times when you need to spend more - Christmas, birthdays etc, so build in some slack and perhaps you can keep some money on one side for those special occasions. If you make your budget too tight an unexpected bill can cause problems. Good luck.
    • Annie35
    • By Annie35 15th Apr 19, 7:11 PM
    • 338 Posts
    • 273 Thanks
    Annie35
    Just to add another voice that I'm not sure you're doing your benefit check correctly as there are no new claims for tax credits, it's essentially defunct for new claims.

    Try www.entitledto.co.uk & it will tell you about universal credit & also council tax support. If when you fill in the forms & last year you were earning more the results will be low but universal is based on last months income so do apply to get a real decision.
    • Live more work less
    • By Live more work less 15th Apr 19, 8:55 PM
    • 6 Posts
    • 0 Thanks
    Live more work less
    Hi did this and you were right, UC says I can have 200 a month! So do I claim this and pay it to a IPA? Will the OR make me claim the UC?

    Seems crazy the government will GIVE me 2400 a year for doing nothing!
    • Clouds88
    • By Clouds88 15th Apr 19, 9:26 PM
    • 167 Posts
    • 162 Thanks
    Clouds88
    Well maybe hold off until discharged then if your outgoings aren’t leaving you in a deficit without it, unless they mention it in the interview?

    The government give you it because your wages are very low to support you and your child, if you had a full time job and earnt more you wouldn’t get it.
    • Live more work less
    • By Live more work less 15th Apr 19, 9:46 PM
    • 6 Posts
    • 0 Thanks
    Live more work less
    Yeah but still crazy. From SOA we have enough money for food, rent, all bills, clothes, holidays, car, entertainment and they still want to give us more!
    • Clouds88
    • By Clouds88 16th Apr 19, 6:37 AM
    • 167 Posts
    • 162 Thanks
    Clouds88
    But you’ve obviously been spending more than that because you’ve got into debt in the first place so hopefully it’ll keep you out of debt in the future good luck with it all anyway.
    • vixg66
    • By vixg66 16th Apr 19, 9:57 AM
    • 20 Posts
    • 7 Thanks
    vixg66
    Would receipt of tax credits qualify your child for free school meals.

    As a general note 500 seems high for groceries for 2 adults and 1 child. We are a family of 4 and spend about 400
    Originally posted by BoGoF
    I wouldn't worry too much about the groceries bill either. I have been allowed 300 pm for one person as I'm vegan - plus I have been allowed 3 per day for lunch at work (as there is nowhere to sit and eat lunch away from our desks where I work)
    Last edited by vixg66; 16-04-2019 at 10:01 AM.
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