Bankruptcy..then circumstances change

CrystalIzzy

Hi..I would really appreciate some advice please as my stress levels are about to go through the roof!!!
I am single mum, have debts of approx £48k (£40k of which is defecit after joint mortgage voluntarily repossed and re-sold-ex husband bankrupt so debt comes to me)
I have had an interview with CCCS and advised to go bankrupt. I am OK with this as have no other option. Am completeing online forms and going to court next Thursday so fingers crossed.
My problem is that my ex husband and I have started to build our relationship up again. We live apart but it it is going quite well. What happens if in say a few months time we are ready to live together again? Will I have to declare that and could it overturn the bankruptcy? Is it better to wait until I am discharged in a years time? He is practically at the end of his bankruptcy.
Also when he first went bankrupt, we were seperated, but were on good enough terms that I allowed him to use one of my bank accounts until he got a new one set up.
When I submit all my evidence to the OR, won't that look really fishy that he used that account for a couple of months last year??
I'm so stressed about this!
Thank you in advance for any advice or help.

peachyprice

Hi crystal,
It won't make any difference to your bankruptcy whether or not you are with your ex. If you were together your BR's would have been treated completely separately, the same as if you are apart.

As long as he wasn't using your bank account to squirrel money away from the OR that won't matter either, but if they did think that maybe he as it would have an effect on his BR not yours.

There really is nothing to worry about, the OR is not interested in your relationships or living arrangements as long as you keep them fully informed of any change in financial circumstances.

HTH

CrystalIzzy

Thank you very much.
It will affect me finanicially though as I will be filing bankruptcy on a single income and receiving tax credits etc. If my husband and I move in together there will then be two incomes and my tax credits will stop etc, so this is a big change. Will they look at his income and tell me I have to pay more?
Thanks again

peachyprice

If he moves in with you your expenses will increase too, and your benefits will go down.

When you tell the OR about your change in circs you would have to fill in a new I&E but you don't put his whole income down, just his contrubution to the household bills.

Unless his income is so large (unlikely if he's already BR) to make a difference that you could pay off your debts, then in theory you wouldn't be insolvent. Would that be the case?

CrystalIzzy

He couldnt pay them off, but could possible afford to pay more. He takes home £1700 and once released from his bankruptcy, if he lived with me, would only have outoings of about £600, before contributing to my houshold bills/shopping. If he contributes, say half of my bills, it would be about £600 on top, leaving him £500 spare.
I would be up by his £600, but down by tax credits of £500 per month, so would have extra £100.
Can they take that spare £600 between us?

peachyprice

Does he pay into an IPA now?
If he does this may change, but his expenses will increase too, so it may not necessarily increase his IPA, once again they can't take the whole of your salary into account.
If he doesn't pay at the moment they can't start one once he's discharged.

They can't use his salary to make you pay an IPA, which is why you don't put his whole salary, only his contribution. They can only take your spare £100 into account, but I'm sure once you've allowed for everything on your SoA there won't be £100 spare.

CrystalIzzy

Thanks for that - another question...when completing the online form I cant find what supporting evidence I need to take with me to the judge? I know from my husband that he had to take copies of everything - is that right? Do they need originals or copies?
Thank you!

peachyprice

You don't need to take anything to the judge, just your forms, check with your court how many copies, and your £510.

The OR will ask for bank/cc statements and loan agreements, but don't worry if they don't have them all, they can get them from the creditors, they wil need the originals, not copies.

CrystalIzzy

Thank you you are really helpful. Do you know how many months bank statements you need to take to OR?

philnicandamy

CrystalIzzy wrote: »

Thank you you are really helpful. Do you know how many months bank statements you need to take to OR?

Just take what you have....anything missing the OR can easily source

(usually then can ask for 1-2yrs worth....they could go back as much as 5yrs but unlikely)