Bankruptcy allowance question

lostsoul2020

Hi all - sorry if this has been answered but after some searching I can't find the answer to this anywhere.

I've just failed an IVA for arrears - long story short I fell a long way behind due to redundancy thanks the pandemic and another personal situation prior to that and just couldn't face extending to 7 years. So now although I have a plan for full and final settlement offers I am aware of the risk of the bankruptcy petition so I'd like to be prepared.

I'm trying to work out allowances that I can enter into bankruptcy with - the thing is I fully financially support my partner as she is not working so in this case am I ok to enter the couples amount into the allowances? She would not be going bankrupt as she has no debt other than our joint mortgage but with the tiny equity in the house I think her parents would assist her buying my half out to retain the house.

I'm basically trying to avoid an IPA and if it means dropping a day a week at work to reduce my salary then I have that option but I need to know what allowances to work to for planning.

Thanks in advance.

JCS1

You will need to enter household income and expenses.  The allowances are not published, but if you post your SOA on here we can given you some guidance.

sourcrates

Are you concerned your creditors will make you bankrupt ?

Although that can be a possibility, it very rarely happens in real life, the normal response to a failed IVA, once it filters down hill to your creditors, is that the old collection activity would start again, you might get a few letters and phone calls, much like before.

Its good you are pre-planning, but don`t expect your creditors to fork out £680 they may never see again, just to bankrupt you.

On the other hand, if its how you intend to deal with the debts yourself, then as advised above, an SOA is the first step.

fatbelly

You can be forced into bankruptcy by your IP or creditors but it's incredibly rare. I once asked an IP at Payplan if they ever did it and the answer was three or four per year. So I don't think you should plan for that eventuality.

What I will note is that your debts coming out of a failed IVA may not be the same as when entering into it  - many companies sell their debts to specialist firms who seem to like insolvency debts.

So if your plan is to save a lump sum for full & finals while waiting to see what comes out of the woodwork - I'd say that sounds sensible. 

lostsoul2020

Thanks everyone. That is good to hear as I have a good solid plan for full & finals which frankly benefits me and my creditors more than bankruptcy.