H bankrupt. OR pursuing ME for rent he paid on our house!!!!

bobbingalong123

I dont have the money. it has all been used on living expenses. i did exactly as he told me to do with it. and as i said, i had to pay MORE than that in living expenses over the last 6m to cover all our basics. so its not like we have deliberately spent his money first if you see what I mean.

thorsoak

I have every sympathy for the predicament that you now find yourselves in - but whilst you say that you have had to pay more than the £6,000 in question in living expenses, your OH has contributed to the family budget by being the SAHD, thereby saving you childcare costs. He has made a contribution towards your family, albeit a small one.

debtinfo

ok here is the OR's guidance on the matter from their technical manual

It is long winded so i have paraphrased, the full text can be found here

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part3/part_3.htm


31.5.20 Cash at bank

"Any credit balance at a bank that is not required by the bankrupt to meet their reasonable domestic needs should be claimed by the official receiver URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part3/Part3notes.htm#2"][COLOR=#0000ff]note 2[/COLOR][/URL regardless of the source of the funds that made up the credit balance. It does not matter for example if the money in the account was earned income, a lottery win or state benefit"

(and to explain the blue part)

"As stated in paragraph 31.5.7, the bankrupt should be allowed to meet his/her immediate day to day expenses"

"If the bankrupt is self employed or is paid at irregular intervals, then he/she should provide an estimate based on current work in hand but for a period not exceeding one month. If this estimate is accepted by the official receiver, and the account contains sufficient funds, the official receiver should give authority to the bank to release that amount to the bankrupt, any remaining funds being realised for the benefit of the estate URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part3/Part3notes.htm#3"][COLOR=#0066cc]note 3[/COLOR][/URL. The balance on the account should be verified with the bank before the authorisation for the release of the funds is given."

(from the red) you see the problem is that as he is no longer going to be trading there is no current or future work in the next month and so the OR can not allow him to keep any of it.

bobbingalong123

Ok so there was 2900 in account at time of bankruptcy. we should minus reasonable living costs for the first month (say £1000) and offer £1900? So you think this would be fair?

silvercar

debtinfo wrote: »

ok here is the OR's guidance on the matter from their technical manual

It is long winded so i have paraphrased, the full text can be found here

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part3/part_3.htm


31.5.20 Cash at bank

"Any credit balance at a bank that is not required by the bankrupt to meet their reasonable domestic needs should be claimed by the official receiver URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part3/Part3notes.htm#2"][COLOR=#0000ff]note 2[/COLOR][/URL regardless of the source of the funds that made up the credit balance. It does not matter for example if the money in the account was earned income, a lottery win or state benefit"

(and to explain the blue part)

"As stated in paragraph 31.5.7, the bankrupt should be allowed to meet his/her immediate day to day expenses"

"If the bankrupt is self employed or is paid at irregular intervals, then he/she should provide an estimate based on current work in hand but for a period not exceeding one month. If this estimate is accepted by the official receiver, and the account contains sufficient funds, the official receiver should give authority to the bank to release that amount to the bankrupt, any remaining funds being realised for the benefit of the estate URL="http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part3/Part3notes.htm#3"][COLOR=#0066cc]note 3[/COLOR][/URL. The balance on the account should be verified with the bank before the authorisation for the release of the funds is given."

(from the red) you see the problem is that as he is no longer going to be trading there is no current or future work in the next month and so the OR can not allow him to keep any of it.

I would say that the red bit is asking for the amount of the lump sum that is needed to meet day to day living costs for up to one month, not to meet the needs of the business. The previous paragraph confirms that the OR is able to understand that the self employed can have income in lumps not regularly. I would say the reference to "current work in hand" is to see what other work there will be in the month to provide more income.

silvercar

bobbingalong123 wrote: »

Ok so there was 2900 in account at time of bankruptcy. we should minus reasonable living costs for the first month (say £1000) and offer £1900? So you think this would be fair?

Remember that you can argue whatever you want. You could provide a statement of your outgoings. You are also under no obligation to divulge your income to the OR or you can choose to do so.

I don't know what would happen if you said that the money has all been spent on essential living. What could the OR do?

bobbingalong123

Ah yes, good point silver. God this is complex isnt it. Well I have written back saying no, it was his income, he's not getting any more and we needed it for living expenses. Will wait to see what they say...

debtinfo

silvercar wrote: »

I would say that the red bit is asking for the amount of the lump sum that is needed to meet day to day living costs for up to one month, not to meet the needs of the business. The previous paragraph confirms that the OR is able to understand that the self employed can have income in lumps not regularly. I would say the reference to "current work in hand" is to see what other work there will be in the month to provide more income.

no, have a read of the all the info in the link, the purpose is to allow the bankrupt to keep enough to reach their next pay day, or in the case of self employment what they could expect to receive over the next month, The default position is that the rest should be taken into the bankruptcy estate. In this case there is no expectation of further income and so the default is to take it all as their is no reason to allow any to be retained by the bankrupt