Bankruptcy questions

jamiesmack

Hi all,

After months of deliberation, worry and a failed DMP, I have decided to apply for bankruptcy. I have a few fairly specific questions that I hope you can help with - I have been up all night thinking about it, and the debtline chat isnt open today I think.

I am married, but my wife is not applying for bankruptcy, her finances are relatively healthy. My questions:


1. We have a joint debt of around £400 for an old council tax benefit overpayment, would I have to include this in the bankruptcy, or could this continue to be paid off by us afterwards?

2. We have two household vehicles, one is my work van (value approx £1500) this is registered to me. The other is my wife's car, registered to her, and I am a named driver on her insurance (value £8000) - Would my wife's car be affected?

3. What household items would be at risk? could they take our tv etc? as my wife has paid for most things.

4. I currently have two mobile phones, on contract with EE. I am behind with my repayments, and this debt would likely be included in the bankruptcy. What would happen to the handsets themselves, would ee take them back as I havent finished paying for them? (i realise this might sound stupid but I dont know how these things work)

5. I have a hp agreement for a work system that is fixed into my van. I am approx 2/3 of the way through paying it off. This would be included in the bankruptcy. Would they take the item back once Im bankrupt?

Im sure there are loads more questions, but thats all i have for now. I really do appreciate any responses. Thank you

TheGardener

jamiesmack wrote: »

...My questions:

1. We have a joint debt of around £400 for an old council tax benefit overpayment, would I have to include this in the bankruptcy, or could this continue to be paid off by us afterwards?

2. We have two household vehicles, one is my work van (value approx £1500) this is registered to me. The other is my wife's car, registered to her, and I am a named driver on her insurance (value £8000) - Would my wife's car be affected? NO

3. What household items would be at risk? could they take our tv etc? as my wife has paid for most things. BR does not include taking household assets unless they are valuable antiques/jewellery or state of the art surround sound home cinema worth many thousands.

4. I currently have two mobile phones, on contract with EE. I am behind with my repayments, and this debt would likely be included in the bankruptcy. What would happen to the handsets themselves, would ee take them back as I havent finished paying for them? (i realise this might sound stupid but I dont know how these things work) If the contract is in arrears than it is highly likely EE will ask for the handset back and you will find it difficult to get another contract for now.

5. I have a hp agreement for a work system that is fixed into my van. I am approx 2/3 of the way through paying it off. This would be included in the bankruptcy. Would they take the item back once Im bankrupt? You need to check the agreement you signed with the supplier first. If the equipment is critical for your work the OR may be open to negotiation. ..

How much more or less (%) do you earn than your wife?
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CIS

1. We have a joint debt of around £400 for an old council tax benefit overpayment, would I have to include this in the bankruptcy, or could this continue to be paid off by us afterwards?

Assuming that it's being recovered in the standard way via the council tax account and it was a joint council tax account then the you wife would remain liable for it.

jamiesmack

I am self employed, and earned considerably less than my wife last year.

How will this effect things?

TimeToRebuild

TheGardner has hit the nail on the head.

However with regards to your handset, Vodafone never asked for the handset back off me so you should be good.

es5595

Reading from what other posters have said in the past, do not tell them your wife’s income “sorry, she won’t disclose details to me”.
Then all household bills are considered 50/50 split, rather than her expected to be paying more as she earns more.

jamiesmack

Ive been working out my income expenditure with stepchange, and have a question on IPO payments

Currently, as a household we pay out £225 per month more than we bring in. Before any debt payments. I am hoping to rectify this by getting a new job with increased earnings.

Obviously as things stand, there would be no IPO payments, and I have no problem paying them once my employment system improves.

My question is regarding two loans that my wife has, are they considered a household debt, that we are both liable for? and would they be taken into account when the ipo payments are calculated?

ToxtethO'Grady

Legally for loans it is who is named on the loan agreement, if it's only your wife's name then they are her debts and any surplus she had after the household living expenses would be used to pay them.


It is not classed as a household expense if it is only in your wife's name, it's her debt and show she pays it and you would not be expected to pay towards it.


If it's in joint names your liability is removed and your wife would be liable for the debt.

jamiesmack

Thanks, I understand.

Just trying to get a few things straight before I put in my application.

Last year my wife brought in £1641 p/m.
I brought in £580 p/m

I am currently looking for better paid work, hoping to bring my income to around the £1200 p/m region.

How does this all effect the IPO? I cant get my head around it all.

On a separate note, it says on the .gov website that if you are self employed your business will be closed. I am a window cleaner, does this mean I will no longer be able to trade and will need to find a new job?