Out of our depth

TheGardener

The MIL's rent is going to be an issue. Even if you don't petition for the BR - with that level of debt I suspect one of your creditors may do it for you anyway eventually. By doing it yourselves you have a little more control over it. Are you sure there are no other benefits MIL can get despite being abroad - is she in the EU?
If not paying the rent is going to leave MIL on the streets the OR will have to consider a request for pay the rent for her as a dependant. Is there no way MIL can come and live with you?

woodformoretrees

Due to her age would MIL not come under consideration as a dependant? In the same was as allowance is made for the cost of children etc?

The OP iisn't paying a debt, they're paying rent. Would they no longer be able to count care home costs etc for the MIL either? Many pwolle have elderly dependants as well as young ones. It does seem unfair that one type wouldn't count.

Brock_and_Roll

Surely there is nothing to stop the OP paying the MIL's rent post-bankruptcy - as long as the cash comes from other "pots" that are acceptable to the receiver?

For example the £50pm holiday fund and the £425 per month for groceries etc for 2 people could be trimmed significantly and overall it may be possible to find the £200 especially if any benefits are factored in.

patman99

Is it possible to have your M-in-L come over to live with you ?.
She might be able to claim PTC and possibly other benefits.

One thing is for sure, at some point, one of your creditors will eventually lose patience and finally force BR on you, thus leaving your M-in-L without anyone paying her rent.

inbigtrouble

Thanks everyone for the replies,

The debt advice charity have advised us that it is unlikely any of our creditors will file for our bankruptcy simply because of the initial outlay they would have in costs and the fact that we have no assets. Apparently it is more likely that they may eventually go for the CCJ option.

My school of thought was because of my MIL's age, she is immediate family that she would be considered as a dependent, but not according to the debt advice charity. She lives outside the EU and there definitely are no other benefits available in her home country.

We would love to have her live with us and even had her come over 3 years ago to stay with us for 6 months, but she hated it and became ill so we had to take her back home after just 1 month. The other issue would be a legal one, she does not have right of residency here.

Trimming down the budget in order to find the £300 for MIL's rent is just not an option because of the cost of living where we live and care costs for my disability. We have already trimmed our spending to the bare bones of what we actually need to live on. As I have already said there are no benefits we are entitled to an this has been triple checked.

The debt advice agency I spoke to keep trying to push us down the route of DMP and even suggested paying MIL's rent may be accepted under this option. But I find it very hard to believe if an OR would not be willing to accept MIL as a dependent and at the end of the day the final decision would not be made by a judge not an OR if we reject their proposal, but the banks will accept her as a dependent. Does not seem very likely to me.

We are not trying to shying away from paying our dues here. But it seems really unfair that creditors, an OR, or even a judge would be willing to see an 80 year old pensioner homeless on the streets for a few extra pounds for the banks who have been shafting us for years.

inbigtrouble

Just a quick question,

If one of our creditors did decide to go down the route of filing for our bankruptcy, why would we have less control over things?

Is the process not the same except basically they are paying the bankruptcy fees?

fatbelly

inbigtrouble wrote: »

The debt advice charity have advised us that it is unlikely any of our creditors will file for our bankruptcy simply because of the initial outlay they would have in costs and the fact that we have no assets. Apparently it is more likely that they may eventually go for the CCJ option.

inbigtrouble wrote: »

If one of our creditors did decide to go down the route of filing for our bankruptcy, why would we have less control over things?
Is the process not the same except basically they are paying the bankruptcy fees?

I would say you are correct on those points.

Even ccjs are not very common compared to the numbers of defaulted accounts. But with 20 creditors it wouldn't be too much of a surprise.

inbigtrouble

Thanks Fatbelly,

We have already had a county court claim form from solicitors acting for one of our creditors and interestingly it is the one we owe the least amount of money to.

I have just checked and we have already passed the 14 days allowed to complete and return the claim form. (oops) I have been so worried and absorbed by the MIL rent issue.

Any advice on what I should do?

inbigtrouble

Just had a thought,

If we did go down the bankruptcy route and the OR then the judge did not allow us to continue paying MIL's rent that would only leave us with 2 realistic options:

1) Force my MIL to move here depute the fact she can't stand the place and got sick last time she came here, incurring additional living costs which would surely have to be allowed for.

2) We move to live and work in MIL's country meaning my wife has to leave her job and therefore no income in UK.

I really cannot see the logic of not allowing us to pay her rent.

Any thoughts?

alastairq

You should put the expense down on your SOA when you complete the forms......

As long as you have a paper trail to show were the money is going, and what for, you should have a very strong argument against any adverse claim by an OR.

The important thing si to gather evidence......appealing to 'sense' and being emotive doesn't work...hard evidence gives the OR the necessary evidence too....so that the expense can be seen as essential, to anyone else who might want to know. Remember, the OR has to write up a report of a Bankruptcy.....allowing an unusual expense, 'because the OR felt like it'..doesn't wash for them...