Sugar daddies and bankruptcy......

BrownTrout

Hello i wonder if people can give me some help! (ive offered to post this on behalf of someone who didn't want to start a new post and be seen as some kind of troll) as it might seem a bit weird
A friend was made bankrupt end of May by a firm whom he owed a lot of money to, also had other debts to
Telephone interview is booked for them next week
They don't work, they don't have any savings or such like
Quite simply he lives with a much older guy  (and very well off) (he is 25, they are 48) who shall we say have an arrangement and any money he wants he just gets given 
As a result he doesn't claim any benefits etc
How on earth does someone explain this to the OR?, any thoughts appreciated 

luvchocolate

Just tell the truth...say it as it is. 

gwynlas

He just needs to say that he is in a live in relationship where he is provided for in the same way as any other couple.If he does not work or claim benefits then he doesn#t have any source of income.

BrownTrout

Fair enough, maybe he wasnt making it more complicated then it was

BrownTrout

What is position towards cash gifts? in relation to the OR ?

sourcrates

BrownTrout said:

What is position towards cash gifts? in relation to the OR ?

I wouldn`t call them cash gifts, living allowance is a more appropriate term.

CKhalvashi

I don't see how he has any income in this situation that can be claimed by the OR, as someone in effect is paying his living expenses and their income isn't subject to the bankruptcy order.

I can't see there being a salary, benefits or trading profits here at face value, he is effectively a househusband.

TheGardener

I would agree that the friend has no income and is supported by his partner therefore there is no income to declare. The older partner is under no obligation to give details of their income or assets (but that doesn't mean the OR won't try...)
BR aside - has your friend considered that by not working or claiming benefits - the loss of national insurance credits will leave gaps in his state pension provision? It might not be a priority now as he's a young man but...

Barny1979

Couldn't he have got his BF to pay his debts rather than go bankrupt

TheGardener

Barny1979 said:

Couldn't he have got his BF to pay his debts rather than go bankrupt

...but then he'd still be in debt?

newsgroupmonkey_

IIRC, being married is no different but if you live with someone and they have lots of money (or income) then you can't claim benefits. Drove my partner up the wall, because she's always insisted that we're financially separate.

Agree with the NI Stamp though. Definitely worth paying.