Partners Income

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nikkinoo75
nikkinoo75 Posts: 16 Forumite
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in Bankruptcy & living with it
Hi all,
I am completing the online Bankruptcy submission and I am confused about what I am meant to put in as my Partner's income.
They do not have an area for all the things that they pay out (Their own loans etc car finance)
Should I put in their full salary and add all their expenses as extras or reduce their salary by their own private commitments?
THank you!
«1

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  • Years_of_debt
    Years_of_debt Posts: 92 Forumite
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    Your partners income is what he/she takes home monthly. I.E £1500 after tax and NI and pension savings (if applicable).
  • nikkinoo75
    nikkinoo75 Posts: 16 Forumite
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    Thank you, but how do I show what they pay out of their own income as technically not household debt, it is theirs but I cannot use all their income as they pay these debts first?
  • Potbellypig
    Potbellypig Posts: 775 Forumite
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    nikkinoo75 wrote: »
    Hi all,
    I am completing the online Bankruptcy submission and I am confused about what I am meant to put in as my Partner's income.
    They do not have an area for all the things that they pay out (Their own loans etc car finance)
    Should I put in their full salary and add all their expenses as extras or reduce their salary by their own private commitments?
    THank you!

    Full salary and add their expenses. If you do it the other way and they ask for payslips, it will show you've lied.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Nikkinoo75 and welcome to MSE,


    I understand that you and your partner are dealing with your finances together and that previously they may have paid their debts first, and then contributed what they can afterwards to the household. However, this is unlikely to be accepted by the Official Receiver (OR) on a joint budget as it isn't the correct way to complete it. Your partner cannot pay less to the household in order to maintain their debts, so that you end up paying more to the household, and then potentially have less surplus / no Income Payment Arrangement (IPA).


    The OR will expect you to show all of the income to the household and all of the essential expenses. If your partner has a vehicle on Hire Purchase, that can be included as an essential expense and shouldn't be an issue, as long as it is a reasonable cost. Then, from the surplus they will apply a proportional calculation as to how much is yours and how much is theirs. Your partner will not be asked to pay towards your bankruptcy. If your surplus is over £20 per month, they can take all of your surplus towards an IPA for up to 3 years.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • nikkinoo75
    nikkinoo75 Posts: 16 Forumite
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    Ah Thank you Laura, so basically it should be assumed that we generally pay half of the household expenses each. My partner has their own IVA and Student Loan commitment so if they took her full salary without realising these then it would give us a higher disposable family income.....am I right in saying that they will then just assume I pay half of the household expenses and then anything above the £20 will be for the IPA?
    Sorry just trying to clarify as my partner is not very happy about it all :(

    Thank you
  • luvchocolate
    luvchocolate Posts: 3,254 Forumite
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    Just to clarify an I.P.A can be applied if there is a surplus of £20...the whole amount is taken including the £20 so leaving no surplus,
    therefore its really important to get your S.O.A right.
  • nikkinoo75
    nikkinoo75 Posts: 16 Forumite
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    I am happy with the form and am happy with however much they decide in the IPA, now I know that they are not going to include my partner's surplus....so I am expecting to pay around £450 a month on IPA.
    Partner income (inc child benefit) 2218
    My income 1730
    Household expenses (not including partners IVA and student loan) 3044
    Leaves 904 surplus...BUT half is partners surplus leaves £452 for me to pay......
    does this sound about right?
    TY
  • Years_of_debt
    Years_of_debt Posts: 92 Forumite
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    If you don’t have a mortgage and you’re renting.
    If you can afford to live on your partners income and then you work part time let’s say £600 a month. You can dodge the IPA. They can only impose one during the first 12 months.

    Have a good read on IPA. Only 1 in 6 get one, most people play the system and dodge them. After 12 months, discharge and no IPA = all debts gone and you go back to full time work keeping your full 1730. Or for further 2 years they will be taking X amount. Probably more than 450 depending on SOA and you proving everything. You can’t just say for example £50 on haircuts a month, they will just say no and strip it back to £12.
  • nikkinoo75
    nikkinoo75 Posts: 16 Forumite
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    Hi I am not looking at avoiding the IPA payment, just minimising it....I think they may well try reducing down my commitments but I am guessing that is their job....Even if we had to pay £800 a month it would be better than where we are so I am just hoping for the best outcome being less than that really :)

    Thank you
  • Years_of_debt
    Years_of_debt Posts: 92 Forumite
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    They can only IPA you based on your income and your expenditure.
    I’m guessing you have spoken to a debt relief charity?
    If you’re happy to pay “£800 a month” you might be better off with an IVA.
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