Wife's income & bankruptcy

jamiesmack

I am currently filling in my bankruptcy application. A few quick details:

Current household monthly outgoings: £2533
Current household monthly income: £2340

Wife's income: £1641
My Income: £600
Child benefit £89

My income is so low because I have just taken a part time job on as my self employed business has failed.

I know at the minute I wont need an ipo as Im in defecit, but I am hoping to increase my wage soon.

I have been advised by some on here that I shouldnt tell the OR what my wife's salary is, is this correct? If so, what do I tell them?

TheGardener

Some would say there are some benefits of a higher earning partner not disclosing their income. Of course if you have a joint account the OR will likely see what your partners income is anyway? (I hope you haven't got ANY joint accounts...?:eek:)
You need to do the maths between you and work out if there is a benefit to non-disclosure. The OR will ask but at the end of the day - the OR can not compel your partner to disclose their earnings. If you don't - then the OR will assume a 50/50 split on all household expenditure.
Moving forward - you both need to balance your budget - if you have a deficit even after BR then you are just heading into debt again.

jamiesmack

Thanks for the reply. so if we were to not disclose my wifes earnings, do I just leave that section blank on the application? or put zero and explain to the OR during interview?

Mrhuk

. Of course if you have a joint account the OR will likely see what your partners income is anyway? (I hope you haven't got ANY joint accounts...?)

Does that mean if needed and my wife gave a joint account but get paid in different accounts they can see how much she gets paid or only if she's paid into the joint account ?

silvercar

It makes sense in your case for your wife to decline to provide her income, perfect legal as she is not bankrupt.

The problem is that the OR will expect to see a balanced soa, which may be hard to do if your wife contributes so much more than you.

TheGardener

The comment about joint accounts was not so much about the OR seeing your wife's salary - but that if you go BR and you share any joint accounts - your BR will trash her credit history.
Obviously, if your wife's salary goes into a joint account the OR will see what she earns anyway.

maxmycardagain

The answer is obvious...

Split all bills 50%

Wife pays her half..

BR cant pay his half but is seen to be upfront.

silvercar

maxmycardagain wrote: »

The answer is obvious...

Split all bills 50%

Wife pays her half..

BR cant pay his half but is seen to be upfront.

If the wife declares her income, the OR will expect bills to be split in the same ratio as income rather than 50/50.

TheGardener

silvercar wrote: »

If the wife declares her income, the OR will expect bills to be split in the same ratio as income rather than 50/50.

Yes - but the OR will also include your wife's income in the calculation for any 'surplus'...