question about wife's wages

confusedone

Hi there we have already put up some posts here for advice which was all good, and are currently at the point where we have missed/saved 2 months mortgage, with the intention of moving into rented accom in the next couple of weeks, give the house keys back to northern rock then apply for bankruptcy.
My question is this, I am applying for BR as all our debt is in my name. Will the OR take into account my wife's wages. it makes sense that they should as that is an income which we utilise, but i guess on paper alll the debt is mine and if my wife chose to keep all her money then that would be her choice would it not??
reason being, surely it will affect what the OR decides we pay back, if all goes to plan that is?? what do you think?

peachyprice

The OR will expect to see your wife to be contributing to the household bills, in relation to her earnings, but cannot take her whole wage into account.

fiveyearplan

She certainly wouldn't be expected to service your debt but as peachy says, she will be expected to pay her share of household bills (not necessarily 50% though if her income is less than yours). I don't think the OR can ask for proof of her income either.

blind-as-a-bat_2

31.7.16 Income received from spouse/civil partner/partner

It is reasonable to expect that within the household of the bankrupt and his/her family, the income received by a working spouse/civil partner/partner (all referred to as "partner" for the remainder of this section) or a partner who receives income from other independent means, will be used to contribute to the household expenditure in some way, for example by purchasing food, clothing for him/herself and any children, etc. The bankrupt may genuinely not know his/her partner’s income and/or the partner may not be willing to disclose it to the official receiver as they are not personally subject to the proceedings. Legal advice has been received that it is not a proper use of section 366 [note 11] to have a partner privately examined for the purpose of obtaining details of his/her income to establish whether an IPO may be obtained or the level of that order and there is no reason why this should not extend to cover IPAs.

Where resistance to the disclosure of the partner's income is encountered, in the absence of any information to the contrary, it is appropriate for the official receiver to assume that the working partner pays for 50% of all household expenditure. This amount can then be incorporated into an IPA/IPO calculation to assist the official receiver's decision as to whether the bankrupt has sufficient surplus income against which an IPA/IPO can be obtained. It is likely that an assumption of this nature will provokea response from the bankrupt and/or their partner and if the required information is then forthcoming, the official receiver may re-calculate the income and expenditure of the bankrupt taking in to account the information provided with regard to the actual contribution of the partner, to establish whether the bankrupt has surplus income available for an IPA/IPO. Flexibility will be required in any re-assessment, especially where the partner works part-time.

As with state benefits which supplement earned income, whilst it is acceptable to include the income of the bankrupt's partner as part of the total income received in to the household of the bankrupt, it should be noted that an IPA/IPO claim can only be made against the surplus arising from the bankrupt's income.Any calculation of surplus income for the purpose of obtaining an IPA/IPO should work out the surplus available having assessed total income and total expenditure of the bankrupt and his/her household, then proportion the extent of any total surplus arising against the income contributed by the bankrupt. The Income Payments Calculator available on the Technical Section intranet site may assist in proportioning the bankrupt's share of any surplus when assessing an IPA/IPO.

They cant force disclosure, but can assume 50% contribution if disclosure is refused

confusedone

dont think them actually knowing my wife's wages will be a problem, if they look at my bank accounts, they were all joint, as is our now new payment only account. this is the only thing jointly though, all bills and debts are in my name. and im happy with this. My wife is a part time worker and takes home about 150 pounds per week, which we have allotted as an income, shound we have actually halved her income for the sake of working out expendible income?or what should we be putting on paper, or to the OR even?

fiveyearplan

I don't think she would be expected to spend 100% of her earnings on the household but I'm not really sure. Also, she probably has her own expenditure like mobile car, travelling etc that she would need to pay before going into the household. These things won't be listed on your I&E so she will need to make provision for them.