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inday
Starting Member
United Kingdom
11 Posts |
 Posted - 22 March 2011 : 06:50:38
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Hi, just wanna ask for some advice
I am an NHS worker with a debt of 42K , I got 7 creditors
I got no property
Asset is a car worth 500 which I am using for work
My husband is unemployed , been made redundant twice
I had a baby, then problems with debts begin
Husband receives 40 tax credit + 80 child benefit
It goes to his account to pay for his car insurance, mobile and petrol
I got a basic current account with no overdraft. Is this going to be frozen?
I already transferred my salary to my husband coop cashminder account, next is all the direct debits.
Unable to qualify for IVA as DI is less than 200
So tried DMP for 1 year until husband find another job, no luck
So now filing for Bankruptcy as we are struggling to keep with DMP
I got a court date tomorrow afternoon.
My income varies, 50-100 difference every month depending on enhancements and overtime but not regular:
Income:
Basic Income 2294 (without enhancements, overtime, deductions)
Average Net income 1730
Average tax 373
Average NI 187
Outgoings: 1642 in total
Rent 550
Housekeeping 400 (2 adult + a toddler)
Gas,electric, 128
Water 24
Mobile 30
Travelling to and from work 160
Clothing 65
Council tax 97
House insurance 11
Critical illness life insurance 14
Car insurance 48
Car tax 31
MOT 7
Union fees 14
Professional subscription 6(need for job)
Tv licence/basic cable 42
Optician/dentist 15
Any comment will be helpful, as I am anxious as I don’t want my petition to be rejected, as I am not sure if I will get back my 600 back.
Thank you
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inday
Starting Member
United Kingdom
11 Posts |
Posted - 22 March 2011 : 07:38:09
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hi, I didnt realise that my husband is spending 110 petrol a month to take baby to different playgroups plus 10 mobile.
So add to my expenses is 50 for his car insurance.
If my math is right 1730 - 1690 = 40
is this surplus income ok? Can a judge reject a petition if nothing much money left to live on? Is bankruptcy supposed to be the last resort for those people who don't qualify for IVA and will take a lifetime to pay the debt if on DMP base on how much I can afford.
Thank you for those who will reply. I will let you know how it goes this afternoon. |
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 22 March 2011 : 07:46:28
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Good morning Inday
I am sorry to hear about your plight but do think that the bankruptcy is the only option.
You should be able to keep the car due to its value and the fact that you need it to transport your toddler and it lets your husband look for work.
Your basic bank account should not be frozen but you are moving thins to your husband's bank account, which is a good idea.
With the new ruler regarding Disposable Income - you have to pay over any DI over £20 for three years or until your circumstances change - you should think about bumping up your housekeeping slightly. Also you are now allowed to add £10 for each member of your household onto the expenditure to cover emergencies per month. Add another £20 onto your housekeeping and the same for travel. You can then show that you have no DI.
Hope this helps.
John Blackadder |
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inday
Starting Member
United Kingdom
11 Posts |
Posted - 29 March 2011 : 11:49:37
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thanks blackie.
My husband has got another car and the money he gets from child tax credit and child benefit is use for his petrol (110/month) and mobile (10/month) so I was adviced not to put that as income as it goes to his post office account.
I forgot about car maintenance 17 and car park fee for work 13, so I added that too, which left me of 10 DI.
I went to court today, very nervous but the clerk is very lovely and accommodating.I am on a morning appointment and arrived 30 mins early . I got the chance to sort out the paper works, and pay the fee.I was taken to the next waiting room to see the judge.The clerk came back with my petition signed by the judge after 3 minutes.The judge don't want to see me as he is satisfied with my form and I also mentioned that I considered IVA 2009, but didn't qualify then went on DMP for a year but couldn't afford the repayments anymore. My petition was signed and I felt so relieved. The clerk told me that the OR will contact me in 48 hours.
thank you for all the support and information in this forum.
I will keep everyone posted. |
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inday
Starting Member
United Kingdom
11 Posts |
Posted - 29 March 2011 : 11:57:52
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I also rang coop to open a cashminder account. I already got a basic current and savers account with coop with no overdraft, but because the current account got a cheque book, the lady told me that it will be probably frozen by OR. my application is referred and will hear from them after 3-4 working days.
Logging on my online account yesterday, I noticed i got anew cash minder account number , so just waiting for the paperworks to arrive from the post.
I haven't declared that in my bakruptcy paperworks and hearing today as still waiting for the welcome pack, but will let the OR know on my interview. |
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RHB
Senior Member
1159 Posts |
Posted - 29 March 2011 : 15:33:03
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| I would think child tax credit & benefit should be put down if you are claiming expences for said child. |
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inday
Starting Member
United Kingdom
11 Posts |
Posted - 30 March 2011 : 15:35:52
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hi RHB.
Regarding child tax credit and child benefit, I was advised that I shouldn’t put it down as income.but I will let the OR know about this on interview.
Maybe one of the experts will clarify this?
For an update, the OR rang me today to book telephone interview. He also asked about my coop current account if I wanna used it. I told him the current account has got a cheque book and no overdraft. I also told him I opened a cashminder account and still awaiting for decision. He said he will write to coop as he is happy to keep my coop current account but the decision lies in coop bank.
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 30 March 2011 : 15:47:18
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section 6.6 of statement of affairs ask specific quetion do you receive any other income including state benefits or tax credits,
standard response re OR / COOP yes hopefully cashminder will be up and runnning soon
Good Luck Richard,
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inday
Starting Member
United Kingdom
11 Posts |
Posted - 30 March 2011 : 16:00:01
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thanks richard P.
I don't receive the benefit, my husband receives the child benefit and the child tax credit and it goes to his account.
I also think that it should be included in I&E, then I will include his petrol and mobile, still the same DI anyway. it's an honest mistake, I am just following an expert advice who is in the job for more than 15 years dealing with debts. anyway, will let the oR know and he will decide |
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RHB
Senior Member
1159 Posts |
Posted - 30 March 2011 : 16:50:10
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| I think your best to be upfront because as you say the money is accounted for in your expenditure anyway. The tax credit is actually yours as a couple even if it goes into your husbands account so I'm surprised at that advice. |
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Topic |
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Hi, just wanna ask for some advice
