Bankruptcy and wife’s car



  • alextheg
    alextheg Posts: 11 Forumite
    First Post First Anniversary Combo Breaker
    JCS1 said:
    alextheg said:
    JCS1 said:
    You need to put her contribution to household costs, not her total salary
    Think the penny may have dropped. Am I understanding you correctly in assuming that my wife’s contribution to expenses is offset against mine to determine what surplus income I have in order to reach a figure for an IPA ?  As opposed to her total income being used ?
    Yes.  put up your SOA on here and we can advise
    I’ll find some time at the weekend and do this.
  • alextheg
    alextheg Posts: 11 Forumite
    First Post First Anniversary Combo Breaker
    Your spouse is not the bankrupt person.
    Yes you are correct. I have no assets and don’t own the home
    As such, they are not legally obliged to tell the OR what their income is, or when their circumstances change. Only you are under an obligation to do this.

    So, what she spends her money on is irrelevant to a great extent, if she pays £900 a month for a car in her sole name, that`s her prerogative. If you live together as man and wife, and share the bills, then you should complete a joint budget statement.

    If your household finances are separate, then just your single income/expenses are required.

    You don`t own property do you, as assets are nearly always sold in bankruptcy.
    No assets and no home ownership.  That’s what’s making me think bankruptcy could be the better solution for me.

    Still looking into the pros and cons before making the leap though.
  • Pokerking
    Pokerking Posts: 18 Forumite
    First Anniversary First Post
    edited 15 November 2022 at 12:32PM
    Don't be worried about an IPA and instead focus on how you will be without the debt and feel free from creditors chasing you, worrying about bailiffs knocking and nasty letters. It's a nice feeling ringing them up and having a top trump, a bankruptcy number. They can no longer make you feel worried.

    My partner has a car on HP. The OR didn't care less as it was me who declared bankruptcy, they cannot take anything away from your partner. I pay £107 on my IPA. That's it, no stressing about paying 16 creditors and been worried about the letters. I was worried like you, it's very surprising what can claim and pay monthly, hair cuts, clothes, newspaper, stationary and hobbies are very expensive :) 

    Honestly I was paying well over £1700 in paying creditors and suffered mentally for years paying this back, having no food, not been able to have a normal life.

    16 months after bankruptcy and I'm 100% debt free. Yes my credit file is a mess and I'll struggle to get anything for 6 years, but this can also be a positive as it will stop the cycle of getting credit for everyday purchases and makes you pay what you can afford after all that's the mess that got us to this point. Oh that's a nice TV and interest free for 6 months, it's a nasty cycle.

    I don't usually post on here but noticed you was worried about the IPA so apologies if any of the above does not make sense!

    Be debt free :) 
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