Bankruptcy because of family member

Eager_Elephant

I have recently helped a pensioner go bankrupt and basically the income and expenditure they use for them is very different than from someone younger. They allow increased amounts for a lot of things - it's odd really as once you are a pensioner you get loads of things for free!!


The basic rule of thumb for pensioners is that they don't take any state retirement pension and no pension credit but any private pension is for the taking.


I had a client who appeared to have loads of spare income and I thought her IPA would be about £150 per month but was told they could only take her private pension so they get £48 per month (for 36 months)


Can you confirm what your Gran's income is made up of?

TheGardener

As tigerfeet says, keep it simple. Treat the 'grannie annex' as an independent household in its own right - forget the rest of the family and household. Gran pays rent, council tax and her own utilities. So the SOA should reflect a single persons household.
If treated as such then she would have a TV licence of her own, or if not - then should be making a contribution to one. It would also be reasonable to have an internet package, landline etc, these are acceptable costs. I'd stick with the food at £300 unless the OR challenges it. Parking costs - even one trip to town a week is going to be £10 per month. Contents/buildings insurance - if she hasn't got her own then work out a figure that would reflect her share of the main house policy.
Gas & electric are high for what I assume is a one bed property? remember she wont be paying back any debts to the utility companies after BR.
You can put in presents but you might not get it. Also opticians and dentists costs need putting in.
Car costs - tax, insurance, MOT, maintenance etc.
The other child related expenses - unless they are her children - I suspect the OR wont accept this and you are allowed a small allowance for a holiday.

MK55

Hi all made some amendments, I can see why it looks confusing on the SOA.

My gran is disabled so road tax is paid for through the government every year.

The entertainment step change said would be ok as they allow a higher amount for pensions for in day entertainment as they don't work etc.


Eager Elephant only private pension of my grans is worth £34.07 a month the rest of pension form government with pension credit and then disability living allowance with top up for mobility too. I've been through this and registered her for online banking and checked with DWP so we are prepared for this to leave.

The bills my gran pays for are a contribution, the gas and elec are around 120 and 95 a month respectively, as my gran has to have the house at 22 degrees all day (It's like an oven!!!) otherwise her arthritis becomes unbelievably bad and she struggles to move. My gran contributes to the bills and my sister tops up the rest (no bills are in arrears).

No TV license is payable by my gran, my sister pays this as well as the landline and broadband (wifi) as it's within the same property they use the same telephone number

As for parking, my gran has honestly not paid for parking for years, she only drives locally and all our shopping centres don't charge parking where we live... do you think i should put £10 ;-)?

The child related expenses are from my lovely (:mad::mad::mad::mad:) auntie who started all this - she has kicked her 18year old daughter out who is at college who my gran is currently taking care for and is trying to support her so she can finish college. she leaves college june 2016. <--- Would an 18 year old at college class as an adult of a child? I've put adult as she's 18 but i'm really unsure.



I have helped my gran fill out the child benefit form and posted it this morning which will give my gran £80 to be able to support her with bus costs and lunches.

Unfortunately my auntie did my grans tax returns and has took the money to pay my grans tax bills and never paid them, so today my gran received a £700 fine I have just finished writing the appeal explaining the situation, the tax bill was paid by my gran before i found out about it all but because it was late the fine bill has come through. Hoping to god i can get away with this as a first and last time fine, if not will have to set up a payment plan.

Eager_Elephant

I think the IPA will be £34 per month.


Towards the back of Form 6.28 it asks about children and then asks about other dependents - I think your cousin would be classed as someone dependent on your gran.


You do not need to go into details on Form 6.28 about the household situation, this will come when the Official Receiver rings your gran for 'the chat'. She can then explain everything then.


Put in as much expenditure as you want as they can only take the private pension as part of the IPA so no worries about the rest.

MK55

Hey everyone, we have our appointment on Monday. All forms filled out typed them all up in capitals and just added the ticks in the boxes after.

I'm just hoping we get it, my Gran is actually sleeping knowing we are taking care, I just hope she doesn't get rejected.

I've transferred her monthly pension over to one of my accounts whilst the bankruptcy goes ahead, have a co-op application pack sent to me today which is filled out but will post after the bankruptcy.

Hopefully this time next week I'll be taking my Gran out for tea after having some good (strange to say good) news!! thanks all for your help, I don't know where I would be without you all

alastairq

have a co-op application pack sent to me today which is filled out but will post after the bankruptcy.

Be aware, Co-op have a policy of refusing applications for Cashminder accounts, from Undischarged Bankrupts.

If a Cashminder account is desired, then this needs to be opened well before the date of BR petition.

Currently, the only bank who will open a basic account whilst Undischarged is Barclay's.

TheGardener

If you are going with the co-op for a bank account you must get the account open before BR and don't tell them you are doing BR or they may refuse to open it. Once the account is open, they probably won't close it. The co-op wont open an account for her after BR until she is discharged which is usually 1 year from the date of BR. The only High St bank that will open an account for an undischarged BR is Barclays.
If Gran is insolvent her petition will be accepted, the only grounds for delaying would be if the judge didn't believe she had taken advice or didn't understand the consequences of BR. Being insolvent is not a matter of opinion - it either is the case or it isn't - the judge doesn't have the option to disagree.

MK55

Hi everyone,

So today my Gran was made bankrupt. It's sad to say it's the happiest I've seen my gran for 4 months.

We have already had our first initial chat with the official receiver, and she asked for my Aunties address who ran up the debt, they said they are going to bill her for a certain % which we will be discussing in more detail with the O/R on tuesday afternoon for our full chat.

I am so happy that my gran is done with, and that my vicious evil auntie will have to finally pay something back!!

6 months of pain but it's all done - can I please say a HUGE thank you to everyone who has helped me and my gran on here, I don't know where I would be without you all.

Storm-cloud

Fantastic news, well done for helping your gran.


It's good to hear that the OR will go after your aunt, or at least speak to her (not sure there's anything they can do legally, unless your aunt defrauded her without her knowledge and it was reported to the police).


I think because so many people are aware of DMP's, and that seems to be the usual choice offered by advice services, there is an assumption that you won't be allowed to go bankrupt. But it's unlikely to be an issue for anyone if your assets are less than your debts.


And well done to your gran for letting you all help (I have been bankrupt for months and haven't told any of my family).

fatbelly

MK55 wrote: »

Hi everyone,

So today my Gran was made bankrupt. It's sad to say it's the happiest I've seen my gran for 4 months.

We have already had our first initial chat with the official receiver, and she asked for my Aunties address who ran up the debt, they said they are going to bill her for a certain % which we will be discussing in more detail with the O/R on tuesday afternoon for our full chat.

I am so happy that my gran is done with, and that my vicious evil auntie will have to finally pay something back!!

6 months of pain but it's all done - can I please say a HUGE thank you to everyone who has helped me and my gran on here, I don't know where I would be without you all.

Well done. It's always good to get that bankruptcy certificate in your hand.

Next instalment: Evil Auntie v the Official Receiver - should be interesting.