Bankruptcy Advice

notsojollybrewer · 18 May 2017 at 5:51PM

Hi, I am currently preparing to go bankrupt after contacting StepChange. My wife has been advised to seek a DRO...

My question is based upon expenditure and income. I work full-time and my wife doesn't work, StepChange has split our child benefit and child tax credit equally between us giving my wife her half as her only income. With my income and my share of the expenditure I have £?? left for debts although my debt repayments are much more than that! When I fill out the .gov application is it right that I declare half of the child benefit and child tax credit as income even though it is paid to my wife? Also as we've been leaving ourselves with very little to live on due to meeting repayments the monthly living expenses StepChange say we need is great so would I take what they say is acceptable and transfer that to the application? Any other expenditure advice greatly received!

Thanks

notsojollybrewer · 18 May 2017 at 6:36PM

Also we are a family of 5 what would be a realistic amount to put for holidays as my surpluss is currently £399 and I'd really like to try and get it down slightly I currently have car insurance at £300 although I've been quoted £500 today... Car servicing and mot etc house maintenance etc?? Also is it worth getting home insurance and breakdown cover? When doing my soa I held back a bit I think!

Thanks in advance guys

Johnsmith2016 · 18 May 2017 at 9:04PM

Stick as much as you can in. They can only say no

Dental opticians prescriptions groceries emergency fund holidays etc

Do you have a pension you can increase ?

luvchocolate · 19 May 2017 at 7:04AM

You mentioned the amounts you pay on debt, you will not be paying that as all will be written off in B.R. Allowances have all tightened up recently but they can always say "no" if not allowed

notsojollybrewer · 19 May 2017 at 9:06AM

It's basically just knowing what you may get away with from the OR with expenses such as holiday, emergency, kids dinner money, public transport etc... I don't think I mentioned the debts according to my soa I'll have £399 left for debts so OR will take that amount I assume but I have been fairly conservative with the amounts of spending! Also as child benefit and child tax credit is paid to my wife do I add half of that as my income or leave it out?

National_Debtline · 19 May 2017 at 12:19PM

Hi notsojollybrewer

It is for you to declare what you believe you spend (or realistically need to spend) in order to meet your household's essential needs. It is then for the Official Receiver in turn to challenge these figures and demand payments from disposable income of £X if their view does not tally with yours.

I know that is a very general statement but no two households are identical, and for me to suggest what you should budget would be like measuring the proverbial piece of string.

I don't think there is absolutely definitive guidance on how exactly any jointly awarded benefits should be apportioned between you. In either a DRO or bankruptcy. what is looked at is whether either party in a couple is taking on a disproportionate share of essential household bills. Any payments you are asked to make into a bankruptcy should be based predominantly on your wage, rather than on any benefits you receive.

Dennis
@natdebtline

notsojollybrewer · 19 May 2017 at 1:42PM

Well I've completed the application and paid the fee just need to wait till after payday to press the button! I'd imagine I'll also have a tweak of my expenditure... Will the OR have issues with my income being less than all of my expenditure? It's only by £30 approx! I understand they will query and want to reduce some of the less necessary expenses I've added! My income also includes half of the child benefit and child tax credits (£299) and the other half is my wife's only income so I have added all expenditure from my income! The household income includes the other £299 as my wife's so after all living costs I have -£ but the household has £250ish left! Stepchange soa type program divvies the expenditure differently with my wife taking about 5% of living costs from her £299 benefits! It's good to know they should not take benefits into consideration.

Thank you.... Any other advice greatly received &#55357;&#56397;

LincsPaul · 19 May 2017 at 1:48PM

They won't have a problem with income being less than expenditure. That applies for those of us who are currently unemployed in a big way

If they get back to you in an attempt to enforce an IPA by shrinking some of your outgoings, post the SOA on here and there are lots of people about who will have a look at it.

notsojollybrewer · 19 May 2017 at 1:51PM

I think I'll do that anyway for piece of mind lol... Will post it over the weekend! What is the best soa builder to use?

Cheers

LincsPaul · 19 May 2017 at 2:05PM

notsojollybrewer wrote: »

I think I'll do that anyway for piece of mind lol... Will post it over the weekend! What is the best soa builder to use?

Cheers

I used http://www.stoozing.com/calculator/soa.php

notsojollybrewer · 19 May 2017 at 2:09PM

Thanks Paul

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