Maintaince and bankruptcy

romanempire

A little question for the panel:-

A PWC on benefits is declared bankrupt. Keeping in mind the maintenance disregard by the benefits people, would the Insolvency Service then consider any income from CM as surplus income which can be paid towards the PWCs debts?

:cool:

skylight

No. But because this PWC is on benefits soley as PWC's income.

Normally, you would list the maintainance as income but list the kids expenditure as the outgoings so it balances out and is therefore not used towards debts anyway.

romanempire

But are not benefits supposed to be the minimum required to live on and the PWC will receive more benefit when there are children in the household. The bankrupt is supposed to reduce all spending to a minimum while in bankruptcy. Therefore the Insolvency Service could view CM as surplus income available to pay the debt.

R.

miss_spooky

It depends on family circumstance, how many children etc.

"The bankrupt is supposed to reduce all spending to a minimum while in bankruptcy". The bankrupt is allowed a reasonable amount to live on as they have no credit facilities to fall back on. The allowances set out by the Insolvancy Service are very generous. i.e I was allowed £600pm groceries for 2 A & 2 C.