Bankrupcy help please

sammydodger_2

Hi,

So I need to go bankrupt (have had advice and this is my best option) the set up we have here is... my husband pays the mortgage as it’s his own mortgage and sky package and I pay the rest of the household bills so it’s equal - would they see this as ok?? Or that he should be paying more??

silvercar

If you are going bankrupt and he is not, then he is not obliged to give details of income to the OR.

With two incomes the OR would want each to pay towards household bills in proportion to their income. With no income details of one person the OR can only assume that bills are split equally.

In your expenditure, you would include half of all reasonable household bills as your share, to be compared to your income. If your husband pays a high Sky package as his choice the OR can't object.

sammydodger_2

Would they include his mortgage payment into it aswell then!? Obviously this is nothing to do with me but would they take into account that he pays this which is why I pay council tax, water rates etc?

System

They have a list of what they allow for household expenses, these will include stuff you don't pay for and not include things you do as it is effectively a list of essentials. They will only allow you half of that regardless of how much of those bills you pay.

TheGardener

The OR will decide the total value of what you contribute - rather than allocate specific bills. So for example, if you both earn about the same - the OR will expect a 50/50 split - if you earn say 25% less that your partner, then the OR will expect you to pay 25% less of the overheads and your partner to pay 25% more.
Although your partner isn't under any obligation to tell the OR what they earn, if they chose not to tell the OR - then the OR will assume a 50/50 split even if it isn't.

sammydodger_2

Thanks - my main concern is .. if we rented then that’s fine but if I’m contributing towards his mortgage it will be seen as I have an beneficial interest from what i Can gather?

I guess what I’m trying to ask is will they include his mortgage as a bill I could be paying towards like a rent? I don’t want to effect his mortgage in any way as this is not his debts

sammydodger_2

Also - looking at SOA and if it!!!8217;s asking for my husbands income do I enter the cost of his car insurance, tax, phone etc?

LincsPaul

Did your husband own the house before you got together? If so, how long? If yes and a significant amount of time then that helps your case that ownership is nuffink to do with you.

Is there any evidence in your bank statements that you have contributed towards the property in the last few years - i.e. payments to help your husband with the mortgage / funding of repairs or renovations? If not then good.

It's strange.... if your husband was actually a friend and you were paying rent to live with him it's still 100% his house whatever happens. However as you are a couple the situation seems to change and any contributions from you towards the property implies joint ownership.

If you just pay bills that's fine.. however in calculating your expenditure the OR may have you split the bills fairly between yourself and your husband. You are already arguing that the mortgage is 100% his thing so I'm not sure you'll be allowed to pay all the bills 'in return' because that implies an interest from you in his mortgage.

Re. the SOA. You enter your husband's income but only enter expenditures that are either yours or the household's. E.g. if he has his own car and you never use it because you have your own, don't mention it. If it's a 'family' car, do, and the costs will be split. Try and keep him out of it as much as possible and only include items that are yours or shared. They need his income to work out how to proportion shared bills between you both but don't need to know what money he spends on himself.

sourcrates

You really need legal advice on this.

It could be seen that you have a beneficial interest in the property.

I would post on legal beagles, and as well as that, give National Debtline a call, you need a definitive answer to this before you do anything.

sammydodger_2

The house was gifted to him from his parents not long ago - they los deposot etc iv not paid anything into it- I spoke to debtline and also spoke to the insolvency to ask where I stand with this and they said it’s fine.. crazy isn’t it that if I was renting with him then all costs are taken into account but because he owns his house Ian’s I don’t want to effect it I can’t use it yet regardless of owning or renting with both wages being taken into account it seems unfair if they don’t consider he pays that fully

sammydodger_2

This is SOA I did - I am self employed which is why things like phone and fuel are higher and my income is based on the business debt lines budget tool I filled in..

It shows around 650 left with my husband and Is income combined - I havnt entered Anything for rent or mortgage .. how do they work out who’s £650 is left?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 727.86
Partners monthly income after tax....... 1400
Benefits................................ 137
Other income............................ 0
Total monthly income.................... 2264.86

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 100
Gas..................................... 25
Oil..................................... 0
Water rates............................. 44
Telephone (land line)................... 5
Mobile phone............................ 56
TV Licence.............................. 13
Satellite/Cable TV...................... 48
Internet Services....................... 25
Groceries etc. ......................... 500
Clothing................................ 80
Petrol/diesel........................... 280
Road tax................................ 19
Car Insurance........................... 56
Car maintenance (including MOT)......... 45
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 60
Other child related expenses............ 46
Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 10
Total monthly expenses.................. 1614


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1400
Other assets............................ 0
Total Assets............................ 1400

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................16507.....410.......0
Loans..........................10900.....467.......0
Store cards....................6800......290.......0
Over drafts ...................1250......0.........0
Total unsecured debts..........35457.....1167......-


Monthly Budget Summary
Total monthly income.................... 2,264.86
Expenses (including HP & secured debts). 1,614
Available for debt repayments........... 650.86
Monthly UNsecured debt repayments....... 1,167
Amount short for making debt repayments. -516.14

Personal Balance Sheet Summary
Total assets (things you own)........... 1,400
Total HP and Secured debt................. -0
Total Unsecured debt.................... -35,457
Net Assets.............................. -34,057

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.