Bankruptcy help required!

anniekaiya

Hey all,

Iv finally plucked up the courage to write on here after lurking for a while. I'm thinking of going bankrupt in the next few months but have a few things playing on my mind that's driving me crazy with stress


I will be applying for sole BR although I live with my partner,my partner brings home most of the wage although I work 2 days a week bringing home roughly £700 a month

Our debts are around £20,000 mark

We have 2 children and pay for childcare. (Half is probably where debt has stemmed from expensive childcare bills and no help)

Any how the questions I have is do they also take your partners income in to consideration too? And what surplus do they allow you live on each month?

The reason I ask as both mine and my partners outgoings after everything has been paid leaves us with around £90-100 a month to live off and be able to cloth our children etc?

I also have 1 car worth around 2500 and my partner has one worth around £900 will we lose both or just the one in my name? Although we both heavily rely on them for work and getting children to school etc.

Any help would be most appreciated as the stress alone of having to do this is making me sick

Thank you

Helpmeoutofthismess

Hi, sorry to hear you are feeling stressed about your finances, I remember the feeling well and wouldn't wish it on my worst enemy!

Your partners income will be taken into account but only so that your contribution to the household bills can be worked out. For example if your partner earns £2000 per month and you earn £500, your contribution would be a quarter of the bills. Have you tried entering your details on the step change debtremedy tool? The tool will help you work out were your money is going and what your best remedy would be. You need to speak to one of the debt charities before you declare bankruptcy anyway, the judge will want to know that all the repercussions have been made clear to you.

The OR will only be interested in your car if you do declare bankruptcy, if you need (not just want) a car they may allow you to keep yours but as it is worth more than is usually allowed, they may take it but give you £1000 back to buy something cheaper.

Speak to one of the debt charities ASAP, I promise you will feel 100 times less stressed when you do!

H x

alastairq

Hi.. & welcome to the BR board.

BR is an individual petition....so cannot be a 'joint' affair. {IE..if both of you need to petition BR, then that would be two petitions to fund.]

Your partners' income is taken into account when completing your SOA.....in as much as, a decision has to be made as to what percentage of the household expenditure is contributed by your partner..and what percentage by you?

You would not be compelled to disclose your partner's income, however, if the OR does not know, then the OR might assume your partner contributes 50% of the household expenditure...which evidently isn't the case?

SO, you would have to demonstrate what percentage of household expenditure you yourself contribute.


'Surplus' in respect of BR, isn't a combined figure..[ie, you & your partner's incomes]


Surplus income refers only to your own income.

If, on your SOA, there is a surplus of income up to £20, then that is ignored [at the moent...rules may change?]

Over £20 [per month]....and the OR will seek to establish an IPA.......for the full surplus.

Re- your cars?


The issue for the OR is, who actually owns the car?

Being the Registered Keeper does not imply ownership...as the V5c clearly states.

If the car with your name on the V5c was actually purchased by you [and the evidence shows this?] then that car would become an asset in your Bankruptcy..and the OR would take it.

If you could argue successfully to the OR that you should have a car exempted as an asset........then 'your' car would still be 'taken' by the OR, but the OR would then return up to £1000 to you to purchase a replacement.



If both cars were purchased by you yourself, then they both might become assets in your BR.


If, however, either, or both, were purchased by your partner [and there is evidence to show that ?]....then neither car would be your asset.

So would remain untouched.

You need to read the stickie at the top, thoroughly......as all my waffle is explained.

You also need to contact one of the Debt Charities ASAP......[CAB, Step Change, etc]....as this act is a pre-requisite to aBR petition being granted by the Court.

Also, since you are considering BR, you also need to start getting your finances in some sort of useful order I]getting your ducks in a row?[/I

This means, closing any Joint accounts......and opening..for yourself, one or two basic bank accounts with either Co-op [Cashminder] or Barclays...[currently the two banks who will not close your accounts once they are informed of a Bankruptcy.]

Do you 'own' your home, or is it rented?


If 'owned'..then the Receiver will look to acquire your Interest in any equity there may be.


Be aware, there is absolutely no rush whatsoever to go for a BR petition.......it might not even be the best course of action for you to remedy your debt situation? See the Charities as mentioned above..they will advise.

[do not pay for advice.....no need to.]


With BAnkruptcy, the most important moment is the point where a person comes to the decision that BR is the way they need to go.....once that decision is made, the time factor doesn't matter..[unless one has a creditor who you suspect may seek to place a Charge on one's property..thus converting an unsecured debt, into a secured debt?}

Keep posting!!

anniekaiya

Thanks for the info,

I'm just so worried that if I do they will make me do a Iva? To which would leave us no better off my head is whirling with what ifs!

My partner works 7 days a week just so we can have any kind of live but soon as he is paid ( self employed) it's in one hand out another,

We are not married and living in housing home , each week he pays £165 out if his wages to my account to help pay bills etc but this only just covers things,

He has a son from a previous relationship so has to be maintaence payments too so money is a real struggle,

Is my partner best off just sticking to working 5 days a week so it we earn less money? Or do I only have to declare the £165 he pays each week to me? Does this make sense?

As for cars I purchased them both one 4 years ago the other 2, but transferred one to him about 2 years ago for insurance purposes,

Iv looked in debt remedy tool and will be contacting them in due course.

alastairq

anniekaiya wrote: »

Thanks for the info,

I'm just so worried that if I do they will make me do a Iva? To which would leave us no better off my head is whirling with what ifs!

No one will make you do anything of the sort...it is a choice for you to make.

My partner works 7 days a week just so we can have any kind of live but soon as he is paid ( self employed) it's in one hand out another,

We are not married and living in housing home , each week he pays £165 out if his wages to my account to help pay bills etc but this only just covers things,

He has a son from a previous relationship so has to be maintaence payments too so money is a real struggle,

Is my partner best off just sticking to working 5 days a week so it we earn less money? Or do I only have to declare the £165 he pays each week to me? Does this make sense?

Will depend on what 'benefits/allowances' you currently are entitled to.....and whether the amounts are dependant on your incomes?

As for cars I purchased them both one 4 years ago the other 2, but transferred one to him about 2 years ago for insurance purposes,

So..you actually 'own' both cars? For a 'transfer' of ownership to take place, some sort of record of 'gifting' or 'payment in lieu' should be evident.
Simply transferring the name on the V5c isn't proof of who 'owns' the vehicle. [Although it might hold a clue?] I suggest you sell 'your' car, and maybe purchase a replacement for as little as possible?

Iv looked in debt remedy tool and will be contacting them in due course.

Not conclusive, but I hope the above helps?

mattannar

Your partners income will be taken into account but only so that your contribution to the household bills can be worked out. For example if your partner earns £2000 per month and you earn £500, your contribution would be a quarter of the bills.


Not trying to be a pedant, but using the figures of 2000 and 500 the OP's contribution would be 20% not 25%

woodformoretrees

Hi,
When you state 'our debts are around the 20k mark', I just wanted to check that you understand joint debts (taken in both names) won't be cleared by your bankruptcy. They become the responsibility of the other named borrower.

anniekaiya

Hey I mean just my debts , nothing is in my partners name at all x

anniekaiya

My income is 698 per month my partners is 1700 , benefits of 180 per moth ( although this ends in July ) outgoings roughly £2750 maybe more? Hence the overtime to we can have money for the children, but it's wrecking our relationship. I'm at home 7 days a week with the kiddies he works 7 days a week 60 hours plus, we cannot carry on this way

alastairq

what do your own debts consist of?

Helpmeoutofthismess

mattannar wrote: »

Your partners income will be taken into account but only so that your contribution to the household bills can be worked out. For example if your partner earns £2000 per month and you earn £500, your contribution would be a quarter of the bills.


Not trying to be a pedant, but using the figures of 2000 and 500 the OP's contribution would be 20% not 25%

I'm happy to be corrected but can you just give me the formula you are using as I haven't got a clue, I need to work mine out again if I have been doing it wrong!