Advice on expenditure

Poorcouple

Hi all,
If my partner goes bankrupt (without going into too much detail, her income is about to drop considerably) ...I will be paying the majority of household bills etc.
If/when her income increases, can her share of household payments increase? This would mean that I would have some excess cash that I can use for a family holiday, better quality of life, days out etc.
I know all her excess cash will be spoken for by the OR, but does that mean I have to lose out too?
Does that make sense? We want to do it by the book, but I have 3 kids that haven't had a holiday in a couple of years...it'd be nice if that could change. But, if she pays exactly half of the bills, it would mean I would have to pay the other half, which would leave me without any spare cash.
Are we allowed to 'massage' her SoA to allow me (the one not going bankrupt) to retain some of my own wages to spend on my kids?!

alastairq

Your income is yours to do with as you please.

Your OH will be expected to contribute up to 50% of shared expenditure.

That may leave OH without a surplus...for the moment.

However, once OH's income rises sufficiently to meet the 50% share, then the OR may look at what surplus is available, for an IPA.

However...bear in mind, if OH's income remains at low enough level for at least the 12 months until Automatic Discharge.....and therefore no IPA could be agreed, based on any perceived surplus....then no IPA would be arranged....and variations in income or contribution to joint expenditure, will no longer be of concern to the OR.

Poorcouple

alastairq wrote: »

Your income is yours to do with as you please.

Your OH will be expected to contribute up to 50% of shared expenditure.

That may leave OH without a surplus...for the moment.

However, once OH's income rises sufficiently to meet the 50% share, then the OR may look at what surplus is available, for an IPA.

However...bear in mind, if OH's income remains at low enough level for at least the 12 months until Automatic Discharge.....and therefore no IPA could be agreed, based on any perceived surplus....then no IPA would be arranged....and variations in income or contribution to joint expenditure, will no longer be of concern to the OR.

She will be on maternity from November for 9 months.
Any spare cash up until then, we lose.
When maternity kicks in and she only gets SMP her payments to OR will stop.... This would be the case until AFTER 12 month discharge.
Would/could they reinstate those payments after that?

alastairq

Would/could they reinstate those payments after that?

Only if an IPA had already been agreed and actioned prior to AD.

I take it, at the moment, given the existing living expenses, [as in, allowances on SOA?} OH cannot afford to contribute 50%?

Poorcouple

Her income (currently) is greater than mine.
However, with baby on the way, we do have some 'other expenses' that we need to prepare for. (Clothing, cot, pushchair etc)
Either it comes out of her 'excess cash' or we can't buy them!

If we add things like petrol expenses, house insurance, etc, etc, to her SoA then it'd probably leave very little for the OR?

Does the judge/OR take into account the 'unknown costs' of a new baby?

alastairq

Hi..it isn't about 'whether the OR takes these expenses into account'...but whether you OH 'can present a good enough argument for them to be included?'

When completing OH's SOA, all household expenditure should be included....not what OH thinks it should be....but...what it actually is.


All expenditure can..and should...be justified regardless.

However, the category of expenditure must be 'reasonable'.....not in amount....but..what it is for.

All dealings with the between the OR and your OH are , in fact, negotiations.

They are not diktats from the OR's office.


You mention insurance and fuel/travel expenditure?

These are essential household expenses, so they are shared between you.

And should be included within the SOA.


The Judge's contribution is to ensure the petitioner understands the implications of BR....and that they are genuinely insolvent.

In other words, cannot meet their debts as they fall due......without assistance from others, or outside help.

When the petition is stamped, the OR takes full control of he BR's assets and finances....and the rules mentioned in the stickies above are applied....with agreement.

That is the bottom line.

Poorcouple

Thanks, very clear advice