bankrupt oaps

broaps

Hi everyone. We are both over 70 and after advice from CAB are about to apply for bankruptcy as we have run up huge debts after a business investment failed to turn into a profit. I only have a state pension of £517 per month but my husband has a couple of private pensions which add up to £1632 per month. We live in privately rented property. When we have paid the BR fees we will have no savings at all and I am really concerned about saving towards our funerals. I know this might be a bit premature but my husband has a heart condition and while he is well now there are no guarantees. If we save £40 per month we will have around £5000 in 10 years time. We have juggled the numbers around for the soa to try to make sure there is no surplus to "hide" these savings but are nervous that some of our outgoings might be disallowed. Is it likely the OR will allow some funeral savings?

National_Debtline

Hi broaps and welcome to the forums.


It's difficult to second-guess how the OR will assess your outgoings once you have gone bankrupt. Please note though that their focus will be on what you need to meet any immediate needs, as opposed to any savings for future events - funerals included.


It may be the case that you need to wait for the OR to declare how much he/she expects you to pay from any disposable income you are deemed to have (you can challenge this figure if you consider it unreasonable). You can then assess whether you can still put money to one side by operating within whatever spending limits the OR has imposed.


Dennis
@natdebtline

macman

I'd concentrate on the money you need while you are still alive-you might both live another 20 years or so, hopefully.
If your finances at death are inadequate to pay for a funeral, then the cost will be borne by your LA: enough to pay for a basic service. The days of 'paupers' graves' are thankfully long gone.