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  • FIRST POST
    • Pepper25
    • By Pepper25 9th Jan 18, 7:00 PM
    • 8Posts
    • 1Thanks
    Pepper25
    Wifes Wages & Expenses...?
    • #1
    • 9th Jan 18, 7:00 PM
    Wifes Wages & Expenses...? 9th Jan 18 at 7:00 PM
    Hi All,

    Need a little advice here as I'm not sure why the OR wants my wifes wages & expenses. My wife earns around £250 per week but we are just working out her expenses, she has a small cleaning business but what relevance does this have as I'm the one who's gone bankrupt.

    Lets say she earned 100k a year and her expenses were 30k would the OR want her 70k to pay MY debts...? I understand its an household income as thats whats stated on the form "Income Payments Order" but I don't see the relevants to me?

    If collectively our household expenses are 4k a month but collectively we have a 5k income per month is the OR entitled to the difference of 1k?

    Advice needed please as I want to know where I stand on this.
Page 1
  • National Debtline
    • #2
    • 10th Jan 18, 9:59 AM
    • #2
    • 10th Jan 18, 9:59 AM
    Hi Pepper25,


    I understand that this feels unfair to ask for these details but the OR will want to see a household budget to make sure that you and your partner are sharing the bills fairly. The OR cannot take your partners surplus for your bankruptcy/ income payment arrangement, if only you have gone bankrupt, but they need to check that the bills are shared proportionately.

    So, for example, if you earn a similar amount, you would likely split the bills 50/50. But if you earn twice as much as your partner you would be expected to pay twice as much to the living costs and so on. The OR will then calculate your surplus and whether or not to implement an IPA.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • brightonbelle
    • By brightonbelle 10th Jan 18, 10:39 AM
    • 85 Posts
    • 17 Thanks
    brightonbelle
    • #3
    • 10th Jan 18, 10:39 AM
    • #3
    • 10th Jan 18, 10:39 AM
    in my case the trustee asked for my income and my expenses, including all the outgoing payments i made each month, to credit cards and the like. It was calculated that I pay half of all of the bills, even though I earned a grand a month less than my husband, it was he who was bankrupt, and they then deducted his half of the bills from his salary, the remainder he has to pay as a payment order. In the past he had paid the lionshare of the household expenses as he earnt double, but the trustee decided that I should pay more. Is that incorrect then?
    • silvercar
    • By silvercar 10th Jan 18, 3:37 PM
    • 36,394 Posts
    • 153,850 Thanks
    silvercar
    • #4
    • 10th Jan 18, 3:37 PM
    • #4
    • 10th Jan 18, 3:37 PM
    My understanding was that the OR or trustee asks for the non-bankrupts partners earnings to make a split of expenditure. So if the non-bankrupt earns more they would be expected to pay more of the household expenditure. If they earn less, then the bankrupt would pay more of the household expenditure.

    Of course the non-bankrupt partner is not obliged to reveal income. Refusal would mean the OR has no option but to assume a 50/50 split of expenditure.

    Happy to be corrected.
    • Pepper25
    • By Pepper25 11th Jan 18, 6:41 AM
    • 8 Posts
    • 1 Thanks
    Pepper25
    • #5
    • 11th Jan 18, 6:41 AM
    • #5
    • 11th Jan 18, 6:41 AM
    Hi All,

    Thank you for the replies they were very helpful

    So just to summarise its an exercise to calculate income and expenditure for both parties to see if the HOUSEHOLD income is shared fairley?
    • debt doctor
    • By debt doctor 11th Jan 18, 10:38 AM
    • 4,189 Posts
    • 5,862 Thanks
    debt doctor
    • #6
    • 11th Jan 18, 10:38 AM
    • #6
    • 11th Jan 18, 10:38 AM
    Hi,
    Yes, it is an exercise to apportion the household bills in a fair manner according to income ratio. Once the bankrupts income has been fairly apportioned to the household expenses an amount in an IPA can be proposed to the bankrupt for them to consider agreement or not.
    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 ***
    • debt doctor
    • By debt doctor 11th Jan 18, 10:42 AM
    • 4,189 Posts
    • 5,862 Thanks
    debt doctor
    • #7
    • 11th Jan 18, 10:42 AM
    • #7
    • 11th Jan 18, 10:42 AM
    in my case the trustee asked for my income and my expenses, including all the outgoing payments i made each month, to credit cards and the like. It was calculated that I pay half of all of the bills, even though I earned a grand a month less than my husband, it was he who was bankrupt, and they then deducted his half of the bills from his salary, the remainder he has to pay as a payment order. In the past he had paid the lionshare of the household expenses as he earnt double, but the trustee decided that I should pay more. Is that incorrect then?
    Originally posted by brightonbelle
    Clearly designed by the trustee to get extra funds in to their pocket. I think you have been treated unfairly.
    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 ***
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