Income while bankrupt

Skyhaze001

I was declared bankrupt in January, I have a question about income for my partner.

We currently have a monthly income deficit of £320. This will hopefully be reduced to about £120 soon depending on the outcome of a tribunal case for child tax credit for my partner's daughter. I was told by the OR at my interview that I can earn the amount of the deficit without informing them. The company I work for makes greetings cards and has home workers to pack them. My partner is currently a SAHM so I bring home cards for her to pack, the money for this is paid as extra in my wages so is fully taxed. She can be self employed and have my company pay her directly as they do for the other home workers, which is what we would like to do as she would be earning under the threshold to pay tax so would be able to work considerably less hours.

Will this have any negative effect on the bankruptcy? Obviously at the moment I make no payment to the OR as there is a budget deficit. Will this change if she starts earning her own money? We don't intend for her to earn more than the deficit.

National_Debtline

Hi Skyhaze and welcome to MSE,


Normally, I would say in this situation, if you have any changes in your circumstances, you need to inform the OR - just to be on the safe side. If the OR has said that he isn't interested in changes to your budget up to £320 per month, then you would need to work out a new household budget very carefully to check how much these changes affect you.


If the child tax credit award is changing, and your partner is going to be earning then this should mean that you can contribute less to the household expenses and your surplus would increase - whether or not that is over £320 'limit' is something you would need to calculate.


Laura
@natdebtline

maxmycardagain

She can be self employed and have my company pay her directly

Officially HMRC say to qualify as S/E you cant work for just 1 customer... they rarely enforce it though