Confused

Leela_G

Sorry this may be a really silly question, but i am currently considering bankruptcy for myself and my husband a Trust Deed.

However at present i am a SAHM so i don't have any income of my own apart from child tax credits and child benefit. My OH and i have a joint bank account which all our money is paid into and we pay our bills from this - obv he earns alot more than me so when doing a SOA do i split it 50/50 (i wouldn't have enough income to cover the bills) or do i split it to show how much we both contribute to the house i.e. me a 1/4 OH 3/4

Hope this makes sense. Also would the CCCS or CAB help with the SOA - i am awaiting a call back from CAB to discuss my options in more detail

Also one more question we have a mortgage and no equity in the house, do you think it is likely to be repo'd?

(In Scotland - just incase that makes a difference)

fermi

Who are you doing the SOA for? And for what purpose?

Exceptionally unlikely the bank would want to repo the house. Why would they? No gain for them if in negative equity/

Assuming the same in Scotland as in England, then you may have to buy back any future beneficial interest from a bankruptcy trustee or maybe release any interest under a TD if there is some by the end? Either way though, in NE there is practically no chance you would be forced to sell.

Hopefully someone with direct experience of the Scottish system can comment more.

coolcait

The Scottish bankruptcy application form doesn't have an SOA, so there's no need to stress about that just now.

If your only income is benefits, then you won't have to pay a contribution, Income Payment Agreement (IPA). So, still no need for an SOA.

Your husband's situation is more complex. He should probably have an SOA which shows that he pays 3/4 of the household expenditure - given that he earns 3/4 of the income.

However, that might mean that he won't have enough surplus to make a trust deed viable.

Since your house is in negative equity, is there any reason why your husband is going for a TD rather than bankruptcy? Is he in a profession where bankruptcy would be an issue, for example?

skintandfat

In Scotland the house is dealt with in the first 6 months, so they will let you buy back the BI for £515.00

They take your combined income into account, but don't expect you to contribute if you are soley on benrfits

I would suggest you call the AIB (Scotlands Insolvency Service)
Accountant in Bankruptcy (AiB)
1 Pennyburn Road
Kilwinning
KA13 6SA
0300 200 2600

They can't give you specific advice about your own circumatance, but can answer questions you may have