Bankruptcy Income Payment Order/Agreement

Jaymar123

I have recent gone bankrupt and shortly before that divorced amicably. My ex-wife and three children live in our former home which has a high mortgage and very little equity, and the lnog-term future of the house is not yet resolved. However, meanwhilem because the divorce was amicable, no formal support or maintenance agreements were made. I have been paying a substantial payment to my ex wife each month cover the mortgage and some contribution to the family as well. The Official Receiver has no deemed that I should only pay £325 per month based on CSA scales, and as such assessed a very large Income Payment which they have asked me to agree to for 3 years. I cannot agree to this as it does not take into account the realities of supporting my family. Clearly my ex-wife and I have been caught out by a lack of any court order. Is the Official Receiver right to assess things in this way. Even if the CSA scale did apply, then surely there ought to be an alimony element as well. Can you advise?

debtinfo

The OR is correct, they now have a completely seperate family and household apart from the required CSA maintenance payments. They have to support themselves and live a lifestyle that fits with their income.

Jaymar123

Thank you for this reply. So are you saying that I have absolutely no duty or requirement whatsoever to make a payment towards my ex-wife's upkeep, just my children? If she had gone to court over the divorce I would certainly have been made subject to some kind of payment order over and above the minimum CSA element. What if she takes me to court now to get a higher payment (which i would not object to)?

A second issue is if I agree to an IPA is it likely that the OR will try to vary the payments (upward) if after the bankruptcy is discharged (hopefully in April 2011) my income begins to rise.

Thanks again

debtinfo

Yep that is correct, you legaly have a requirement to look after your children and the OR allows that, anything above that is down to he judge and the fact is no order had been made by the time of the bankruptcy order. I am no expert on divorce law but i suspect that the judge would not make any further order considering that you cannot aford to pay your own debts, hence the bankruptcy.

The OR can challange consent orders if they are deemed to be unfair anyway. Often this happens when the two parties come to a private agreement which takes assets away from the person with debts and the judge just rubber stamps it because the parties have agreed.

The OR could vary the IPA , both up or down if your circumstances change

Jaymar123

Thank you very much