| T O P I C R E V I E W |
| adelebw |
Posted - 21 July 2009 : 14:54:00
Hello, I am new to this site but wanted to ask a few questions before considering bankruptcy. To cut a long long story short, 9 years ago our home was repossessed for aprox 2,000. 18 months later the house was sold for 20,000 less then we paid for it. With other bits added on its now 25,000. Dring the last 9 years we have had about three lots of contact but no periods long enough to claim statute barred (i think. After a few visits from debt collectors loking for te money Out of the blue in March we received a letter from Stockport County Court wanting a attachment of earnings. The letter was in my husbands name only even though the mortgage was a joint one??? We completed the I & E and there was nothing left but they still isued an attacment for 100.00 per month. My husband h
left this job before any money was taken and now has a new job so they want details of his new employer. He is reluctant to give the details because he does not want them to be contacted as he is on a 6 month probation period and does not want people to know anout this sensitive situation, also he will get a company credit card and this will not happen. Considering bankrptcy if he declares himself bankrupt, when he has his interview with the OR will they want to know what I earn??? I have my own commitmemnts and debts to pay an also after bankruptcy what happens with your disposable income, sa if it was 400.00 per month? Any advice would be greatly received.  |
| 7 L A T E S T R E P L I E S (Newest First) |
| adelebw |
Posted - 21 July 2009 : 21:11:00
Thank you. Its a minefield to get through. I am completing the BR papers online a section a night. thanks |
| debtinfo |
Posted - 21 July 2009 : 20:44:45
The debt they have is in their name and they are responsible for it. By giving you the money or allowing you to accrue a debt in their name then you have incurred a debt between you and them. this is the debt that is include in the bankruptcy not their debt that they have with the commercial company. |
| adelebw |
Posted - 21 July 2009 : 20:39:43
OK. Surely the DI income I have after bankruptcy I will have to pay some of it to the OR and the rest I could use to pay the debts I have accumulated that are not in my name. |
| debtinfo |
Posted - 21 July 2009 : 20:28:43
Hi again, if your husband earns alot more han you then it is worth puttinng the whole income down as then they will apportion more of the total outgoings against his income and so a lower DI and a lower IPA. For example if a person has 70% of of the income then the OR expects him to pay 70% of the outgoings.
If you are not bankrupt then the OR will not comment on how you spend your money bit will expect you to pay a fair proportion of the household bills. After you are bankrupt you will not be able to pay any provable debts back even if you owe friends and family |
| adelebw |
Posted - 21 July 2009 : 19:54:05
Thank you for your advice. After my husband declares himself bankrupt I am going to do the same. We are reluctant to do it together incase we were left without any money for the rent, council tax, food, I am a worrier. My husband is having to default on his bills this month so he can get the fee together. My husband earns alot more than me and after BR he will have quite a large DI because he has no debts to pay. He has only just started this job which has given him a good rise compared to his previous job. In the last job we shared all the bills 50/50 but the new job (he hasn't been paid yet only been there 5 weeks) we was going to share it with more for him to pay, this would then lower his DI. Does all that make sense??? At the moment all the household bills are in my name and my husband pays the rent. I wanted to ask something else. I also have some other debt (2nd card holder on my mums credit card and a loan from a friend) which I know she / they are liable for. After BR will the OR take this into account when ndeciding on DI. Many many thanks. I just want to make sure we are doing the right thing |
| debtinfo |
Posted - 21 July 2009 : 18:40:31
As the above post says the OR cannot force you to disclose what you earn. If you dont the OR will assume that you pay half of the joint outgoings and put the other half against your husbands income. You need to work out if this means a higher or lower IPA. For instance if he earns alot more than you then it is worth declaring it as more of the joint outgoings will be counted against his income and thus a lower IPA - Please say if this doesnt make sense.
Also as the above post says it is important to understand that if only your husband goes bankrupt you will be fully liable for the joint debts |
| gettingoutofdebt |
Posted - 21 July 2009 : 17:03:36
Has this gone to a CCJ, which is why the Court stepped in?
If you both declare BR then your debts, including the mortgage shortfall, will be written off. If the mortgage was joint and your husband declares BR then you will become liable for any joint debts including the mortgage.
If only your husband declares BR then the OR will ask how much you contribute to the household income however they cannot force you to contribute a certain amount and they will not be able to check your wages, etc. Your husband can simply say that you contribute £xxx and even if the OR asks how much you earn all he as to say is that you have your own debts to pay.
With BR if your DI (disposable income) is greater than £99 then you pay a certain percentage of it (between 50% and 70%) into an IPA (Income Payment Agreement) and the important word here is 'Agreement'. Whereas you were issued an attachment for £100 per month and couldn't argue with it in an IPA you can. Eventually if you and the OR cannot come to an agreement then the OR can issue an IPO (Income Payment Order) via the court but normally the OR and person paying the IPA come to an agreement.
If the DI was £400, as in your example, then you would pay 66% of this (£264) into an IPA and could keep the rest of the income. |
