Bankruptcy I & E

[Sadsack]

Hi everyone

Getting to the last week before going BR and ever going through the forms to make sure I get it right! My I & E is as follows - could anyone let me know if this is going to be acceptable!!

Income £2,800 (average as it varies with commission)
Mortgage £1274
Secured Loan £536
home Ins £28
Water £25
Elec £102
Council Tax £150
TV Licence £12
Tel £30
housekeeping (incl Pet Food) £350
Prescription/Dentist £30
Optition £10
Mobile £37 (contract ends January 08)
Pet Insurance £39
Bank Charge £12.50
Internet £15
Haircut £10
Holiday £30 (never enough as Mum lives 6,000 miles away!!!!)
Total £2690.50
Surplus £109.50

I cannot afford to keep the house - I know that - so rental accommodation is my only option. Will the OR give me sufficient time to find a home to rent? And will he allow me to default on my mortgage and secured loan to save for the deposit and rental which will no doubt be quite high due to my BR?

Any help and comments will be appreciated.

Sue

Ho Hum! Think I'll bang my drum!

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http://sadsack.blogs.iva.co.uk/

[aguise]

Hi Sue
I dont know that much but the Or I am sure will give plenty of time to find a new home. I think your I and e looks ok the only thing that the or may see as high is the pet insurance, although my experience of the pdsa and their charge of £200 a few weeks ago for fifteen minutes of their time, makes it all the more necessary in my opinion. All the bery best to you sue, you are nearly there and a better less stressful life ahead Of that I am sure.

Ang x

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Sadsack]

Thanks Ang - have just got the post and mortgage has just been increased to £1318!!! Will no doubt get letter from secured lender as well!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[scaredkez]

hi sue the i+e looks ok, the only thing the OR may query is the pet insurance on the insolvency site it is set at a £20 max per month if they allow it, so be warned on that one, in regards to the house the OR told me it was up to me if i carried on paying the mortgage before they moved it on, you can stop paying it and save up for a deposit on rented but again be warned the mortgage company will move in on you before the OR for repossession which will take about 3 months anyway so you will have 3 months mortgage saved. what will happen to your secured loan once the house goes?
good luck with everything
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[aguise]

When I see these interst rises it just reaffirms the reason we never took a mortgage in the first place. We are lucky and rent from a housing association, so we have low rent, and a house in an area we could never have afforded to buy and that is why we stayed where we have. No repair costs, only internal decoration. If |I were you I would apply to all, housing associations, council etc and hopefully you will be successful/ All the best mate. Will speak later Grand baby on its way for me to chase round all day.

Ang x

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Sadsack]

Hi Kerri

I have no idea to be honest. Not too sure if I am coming or going at the moment, filling in these forms is really doing my head in!!!!

Maybe someone else out there will be able to give me an idea about the secured loan.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Sadsack]

At the same time -- in the list of unsecured creditors, they ask what the debt was for? I cannot remember -- what do I put down!!???

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[scaredkez]

put down if it was credit card or loan for consolidation etc, and also with the dates i put down when i took the loans out and the credit cards not the last time i used them, when you see the OR he will ask you to be more specific with the larger transactions/loans, mine asked me to the penny and i found it difficult as couldn't remember all my purchases.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Hi - as each OR's examiner has individual discretion for reviewing income and expenditure statements, it is hard to say what will and won't be accepted. It all looks find to me though. And you will only be assessed to pay between 50% and 70% of your disposable income in any case, so any disallowed expenditure can be paid out of your retained share.

The OR has no say so on whether you pay your secured loans or not - ie he is unlikely to be too concerned, but if you default on three payments the mortgage company then have the right to commence repossession proceedings against you. If you have made your mind up to move into rented, then I suggest the property be put on the market straight away to avoid any unecessary legal action against you. Even if it sells immediately, there will be a period whilst the contractual work is being done when you can save some money towards your rental deposit and removal costs.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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[BrassicLintus]

Hi Sue, your I&E looks fine (but you may want to list the internet under telephone - some OR's only allow internet for work/schoolwork etc). And I can't remember your circumstances so forgive me, but if you're single the OR said that the allowance was usually £200 (but keep your figure - you never know - he can only say no!) If you're not single then you need to include more for haircuts. Plus you've forgotten to include a clothing allowance (again for single's usually £30 per month).

[Sadsack]

Thanks for that - the internet is used for work, as we all work from home, this is key for communications!!!

Damn!!! Forgot about clothing - will add that in!! As for allowance, you put down £200. Is this for food and housekeeping etc? Pet food alone costs me £60 a month!!! Not sure if I am going to be able to survive on £140 a month......... mmmmmmmmm at 6' and already down to 8 stone ..........

Guess its time to find an after hours job!!!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[BrassicLintus]

Sorry forgot to add, regarding what you used the credit for - my OR was more interested in what I had taken the loans out for and how I expected to pay them rather than what I'd used the cards for. He only asked if I'd made any significant purchase on any of my cards. All I put down for the credit cards was consolidation or general living expenses (I too didn't have a scooby doo what I'd spent it all on!!!!)

[Sadsack]

Quick question for Kerri unless someone else out there can answer.

You asked about the secured loan on the property. Not too sure what you meant. Can you give me an idea please?

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[BrassicLintus]

Hi Sue, I'd originally put down £300 (because I'd included other stuff in there like dry cleaning for my work uniform, and some other bits and pieces) but he cut my food/household budget to £200, but then listed my dry cleaning and stuff separately, and by the time he'd done that it all came to about £300 anyway!!!!! And Im the same height as you so if you shop at LTS, put down extra for your clothes cos they cost a fortune!!!!!

[scaredkez]

hi sue didn't mean to frighten you, but you are paying quite a hefty sum towards your secured loan, i was just wondering what you thought would happen to it after BR, was you going to include it on your form, as your house you said would be going, so please remember to list it so they can't chase you for the short fall afterwards, once your property has gone there is nothing for that loan to be secured against and that was what i was interested in, will this increase your I+E?
i was curious more than anything as to what would happen to it once the house was taken, i am sure the experts would clarify, once the mortage was paid would this go to unsecured borrowing if nothing left in the shortfall, as for the internet i listed it, and was allowed it, as most people have these days, especially with most jobs having compulsory CPD the internet is needed, sue hope everything works out well for you, hope i didn't frighten you.
kerri


Please view my blog at: http://scaredkez.blogs.iva.co.uk/