Would I lose My House ?

maxmycardagain

We both work full time
Hubby £37,000
Me £26,000
Nett Income per month £3,700

well first of all...

how come out of £63,000 a year (£5250 pcm) you only you only take home £3700?

has income tax bolted up since i last had a job?

dont forget once BR you will have a NIL tax code (so yes, your employers WILL know) so you will have a surplus over outgoings, over £100 a month your IPO will be 70% of that surplus for 3 years.....(though your tax code will revert to normal at the start of the next tax year_

what are you including in your outgoings? not debts, loans, HP or CC?

strimmerman

Just got a question on surplus income......if you for instance have a surplus of £150 pm then the OR will order an IPO......you then have to pay up to 70% of surplus income under the IPO. So does that mean

a) u pay up to 70% of the £150

or

b) u pay up to 70% of the differnce between £99 (being the amount you wouldn't get an IPO for as under the £100) and £150 being your total suplus...... which obviously comes out at £50 therefore meaning that you would pay up to up to 70% of the £50?

deedee_3

When you go over the magic £99 then it is all taken into account ie: £98 surplus= no IPA. £101 surplus then £50 IPA is payable. The % goes from 50% up to 70% as you get more surplus.

Useless_with_wonga

Firstly £3700 after stoppages sounds about right to me when you take into account Income Tax, NI and possibly occupational pension/s union membership etc etc that come out at source.
Secondly you are correct about the nil tax code but that does not mean to say you have to offer any explanation to your employers. Just plead ignorance the wages department will just do as HMRC ask and that's that.

strimmerman

thanks deedee...seems pretty stupid to me that 1 person with £99 surplus gets to keep it all and the next man who is £2 better off with his £102 ends up £48 worse off having to pay £50 but hey did i really expect it would worked out in any seemingly logical or fair manner lol

maxmycardagain

Useless_with_wonga wrote: »

Firstly £3700 after stoppages sounds about right to me when you take into account Income Tax, NI and possibly occupational pension/s union membership etc etc that come out at source.
Secondly you are correct about the nil tax code but that does not mean to say you have to offer any explanation to your employers. Just plead ignorance the wages department will just do as HMRC ask and that's that.

the 3700 will rise to 5000 with a nil tax code then...or more, leaving a whomping IPO

as for nil tax codes, your wages dept will have seen it before.

maxmycardagain

ms munkyface would have to post a complete SOA before any advice on her exact position is.

dont forget an UNsecured debt can become a SECURED debt via a CCJ and Charging Order, then it is secured on the property and not written off in a BR...

maxmycardagain

Useless_with_wonga wrote: »

Firstly £3700 after stoppages sounds about right to me when you take into account Income Tax, NI and possibly occupational pension/s union membership etc etc that come out at source.

pensions are allowed by the OR in an SOA?

i thought the OR snatches what they can?

peachyprice

LizzieS wrote: »

If you are both going bankrupt then your car will be sold, if just your husband going bankrupt you would be able to keep the car as long as the OR is satisified that it is bought and paid for solely by you.

The house (or just your husbands share if only him going bankrupt) will go to the OR. The fact that there is no equity is irrelevant. Not 100% sure if OR can refuse to sell the Equity (he must act in creditors interests), however if he can refuse you do need to think very carefully as the OR can put a charge on the property which will restrict you for years (see extract at end - taken from Insolvency website). A charge on property does not disappear upon bankruptcy discharge, also over time houses do tend to increase in value so it doesn't really matter if the equity is currently small. OR can still force a sale if he thinks the mortgage is much greater than you need to spend on housing, although that could be delayed for a year.

Before going down this route - check exactly what will happen and then compare the alternatives.

"If the trustee cannot, for the time being, sell your home, he or she may obtain a charging order on your interest in it. If a charging order is obtained, your interest in the property will be returned to you, but the legal charge over your interest will remain. The amount covered by the legal charge will be the total sum owed in the bankruptcy (including the costs and money interest). This sum must be paid from your share of the proceeds when you sell the property.
Until your interest in the home is sold, or until the trustee obtains a charging order over it, that interest will continue to belong to the trustee, including any increase in its value. Therefore, the benefit of any increase in value will go to the trustee to pay your debts, even if the home is sold some time after you have been discharged from bankruptcy: the increase in the benefit will not be yours."

It's very unusual for the OR to take this course of action on a run of the mill family homes in a straight forward personal bankruptcy

peachyprice

LizzieS wrote: »

If you are both going bankrupt then your car will be sold, if just your husband going bankrupt you would be able to keep the car as long as the OR is satisified that it is bought and paid for solely by you.

If the OP needs a car to get to work the OR would not take it. if it's of high value they would most likely take it to sell at auction and replace it with a car of a lesser value around the £2k mark.