Total household income ?

crowman19

Hi

I live with my Fiancee and we share the bills (we both work full-time)

Form 6.28 asks for total household income in question 6.8.

Do I ignore my Fiancess income as I will only be putting my half of the bills in outgoings ?

If I add her income it will leave excess which isn't the case as she uses this to pay her half of the bills.

Anyone any experience of this and what did they do ?

Thanks

Pee

Are you a household? I would maintain that you are not and that you are responsible for half and that she is for half. If you were married, it would be both incomes and the outgoings would presumably also be household?

fermi

The total for question 6.8 should be.

Total = (Your take home pay) + (your other income) + (anyone else's contribution to the shared household expenses).

Note, that the above is not the same as including other peoples entire income.

crowman19

Thanks.

Anyone have any experience of this ?

sweetmemories

What happens if you live with your parent?

crowman19

fermi wrote: »

The total for question 6.8 should be.

Total = (Your take home pay) + (your other income) + (anyone else's contribution to the shared household expenses).

Note, that the above is not the same as including other peoples entire income.

Thanks I understand this but I don't think it will calculate correctly.

Let me see if I can explain what I mean.

My income £1000
Say our rent is £800 my partner would contribute £400.

So therefore total household income would be £1400 with partners contribution.

But when I put down my outgoings it would only be for my £400 rent share therefore I have £600 left. But the OR will think I have £1000 left if I put down the £400 of other members contribution to the household expenses.

Hope this makes sense what I'm saying.

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.


31.7.17 Income from adult children and other adult members of household

In the same way as it is reasonable to expect a working spouse/civil partner/partner to contribute to the income covering household expenditure (see paragraph 31.7.16), it is also reasonable to expect that where adult children or other adult members of the household such as an elderly relative have an income, they will contribute to the household expenditure, if only to cover the cost of their food. Any contribution thus received should therefore be assessed against household expenditure within the IPA/IPO calculation, but it must be noted that an IPA/IPO claim can only be made against the surplus arising from the bankrupt's income.

fermi

crowman19 wrote: »

Thanks I understand this but I don't think it will calculate correctly.

Let me see if I can explain what I mean.

My income £1000
Say our rent is £800 my partner would contribute £400.

So therefore total household income would be £1400 with partners contribution.

But when I put down my outgoings it would only be for my £400 rent share therefore I have £600 left. But the OR will think I have £1000 left if I put down the £400 of other members contribution to the household expenses.

Hope this makes sense what I'm saying.

For any category of expense that is shared with someone else, you put down the full amount.

So you would put the full £800 rent.

Then the sums work.

The forms are totally useless at explaining what to put. :rolleyes::rolleyes::rolleyes:

miss_spooky

crowman19 wrote: »

Thanks I understand this but I don't think it will calculate correctly.

Let me see if I can explain what I mean.

My income £1000
Say our rent is £800 my partner would contribute £400.

So therefore total household income would be £1400 with partners contribution.

But when I put down my outgoings it would only be for my £400 rent share therefore I have £600 left. But the OR will think I have £1000 left if I put down the £400 of other members contribution to the household expenses.

Hope this makes sense what I'm saying.

It will be seen as this.

Yr Income 1000
Pt Cont 400
Total 1400

Rent 800
Sub total 600

So the Or will see that you have £600 left and not the £1000 you originally thought. You take her contribution which I think from having a speed read thru the above 50% is acceptable.
You then put down the full household amounts, rent, gas, electric, tvlc, water, council tax, groceries, pet ins, then you own bits: dry cleaning, laundry, car if you have one - if you share then it goes as joint (itms) clothing hardressing etc. then the surplus is what's left.

Post up one oh here using this calculator then we can check figures

http://www.makesenseofcards.com/soacalc.html

crowman19

Last question I promise (on this anyway )

My partner doesn't drive and can't for medical reasons.
The costs involved with the car are down to me which is fine but will the OR try halving this should I put a note down on the forms ?

Thanks

miss_spooky

sweetmemories wrote: »

What happens if you live with your parent?

I think you just put your income & then put down your contribution to the household costs. So if your parents were paying 500 mgt, you may be paying £200pm rent to them. Other should have more info on this.