partners debts and ipa

stundent

Hi all,

Another question sorry.

When determine in one and expenditure for an ipa, will the or allow my wife to include her debt payments. she currently pays just token payments whilst we cleared some priority debts aNd got my fees together. She has 1st debt and we think aiming to clear in 5 years would be reasonable. About 250 per month.

What are your thoughts and the rules?

Cheers

Banquo21

You only need to provide the OR your partner's contribution after everything else is taken off. So her debt repayments shouldn't be on the SOA unless you are doing a joint bankruptcy. You can even refuse to disclose the information and the OR would normally assume a 50/50 split.

I do think you should seek more advice though. Wait till you are absolutely sure it is the only way out. Bankruptcy although a clean slate shouldn't be taken lightly.

stundent

Hi,

I appreciate what your saying, I really do.

one of the reasons I will be going bankrupt is that I do not trust myself with much St all St the moment. Having Revenly admitted to a gambling addiction and all the deceit that came from it, I'm terribly concerned about a return to that life. The inky way to guarantee any real security for myself and family long term us to go bankrupt.

My main concern with bankruptcy us it negatively affecting my wife and children. As such I'm trying to find out in advance what ipa , i Will have to pay.

My wife's debts are separate and she will aim to pay these off through paylan which is her choice.she earns 668 per month, will have to pay 282 in hp and the remainder as debt payment to clear in a time of 5 years.

Will the or allow this?

Banquo21

I am going bankrupt for exactly the same reason. I can't be trusted with Credit and have a gambling problem. My wife doesn't and her Credit rating is impeccable. This is the reason I am not including any information to the OR except what she contributes toward the household. She earns a lot more than me. If I get an IPA it'll be a lot less than the IVA payments I was paying.

Good luck

tigerfeet2006

The OR will expect to see that your wife contributes a fair percentage of her income to the joint household bills. She will not allowed to pay nothing towards them.

fermi

The OR has no actual say over what she spends her income on.

A TF says, they will use her income figure to work out how in theory you should split shared bills between you. i.e. if 30% of household income is hers then they would expect you to be paying 70% of shared bills. What she actually does with it is up to her, but they will use that assumption in the calculations.

As said, she is under no obligation to tell them her earnings. In which case they may assume a 50:50 split.

stundent

So the or will not allow my wife to pay for the hp or her debts?

How do I proportion the incomEach in that case?

As I say her income is 668 but we receive 300 in working tax credits which we only receive because she works. Would these be treated as her income?

Cheers

owlet

If it's only you going bankrupt then your wife's debts don't come into it at all.
They don't go on the form & she keeps paying them. This is for debts that are in her name only.
The OR is only concerned with your debts & your share of the household expenses etc.

Are there any joint loans or anything?

TheGardener

Hi
Ok - for stundent...excerpt from the OR's technical manual

"
Section (l) Student loan income

31.7.78 Student loan income
It should be noted that where a bankrupt is in receipt of a student loan this is not income which can be claimed under an IPA/IPO.


31.7.79 Further Education (Post 16) Initial Teacher Education Bursary Scheme (Education Act 2002)
The further Education (Post 16) Initial Teacher Education Bursary Scheme was introduced in 2007 by the Further Education Teachers Qualifications (England) Regulations 2007. The scheme pays trainee teachers a “golden hello” payment to train to teach specific subjects , the average amount is around £7,000. These payments have no reference to the ‘student loan’ provisions and are not debts (as the funds are not repayable unless the student receives an overpayment which the institution can recover). Therefore any amount received by bankrupt by way of a bursary under this scheme should be included as income in any IPA/IPO calculation.

stundent

Hi Gardner, thank you, I have seen this and it's where my confusion stems from.

I understand loans are not included, and that the specific golden hello is.

However I receive various grants and allowances From the government through student finance England.

Namely

Adult dependants grant

Child care grant

Maintenance grant

And

Parental learner allowance,

I am struggling to find information on these


Thank you

TheGardener

As I say - it's kind of academic - you have to disclose all your income and the OR will determine the details. Just get your expenditure right.