Possible rejection for for being in negative income? 11 May 2020 at 5:03PM in Bankruptcy & living with it 6 replies 242 views

Mandy9966

As per title I am in negative income, minus £400 to just meet my essential living costs.
Would this be a reason to have bankruptcy declined and would I lose the £680 fee? 
My plan is to have food parcel sent to me (family) and my rent is paid for the next 3 months, so I have this time to find a part time job to take me out of negative and be independent moving forward, but I read that the OR might feel I can't survive without use of credit and for this reason my claim can be rejected and I will lose the best part of the £680 fee. 

mwarby

That’s not typically ever a problem, the OR might ask how you intend to live (partly out of concern, partly seeing if you have an income you didn’t mention)

it is something you’ll need to figure out though, as you’ll have no credit to fall back on

perhaps post a soa and see if a DRO is suitable (or other debt solutions)

Mandy9966

Thanks for your reply, and I am over the £20,000 so a DRO would not be allowed, freezing my debts where interest can still be charged will not help me at all, so only option is Bankruptcy.

Just to add I have support from my mother, who has opted to pay for and arrange food deliver per month, this helps me control spending habits, and she will be willing to help me with gas/elc and if need be rent for a short period, would be be classed as income?

mwarby

If it was given in the form of money I suspect it would. If your mother is buying your food you should be careful about claiming that as an expense

To be honest though at the level of shortfall you have the help would need to be at quite a high level to have an impact. It’d perhaps be worth keeping an eye on

Mandy9966

Great reply thanks, I think I am almost ready to hit the button.

DCFC79

Have you sorted out the reason for the debt ?
Pointless going BR if you end up in a similar situation a couple of years from now.

Mandy9966

 DCFC79 Yes very much.