What amount of money would you need to have in a bank account to be considered solvent & therefore ineligible for bankruptcy & does it make a difference if it is in just your name or joint with someone else??
You are technically insolvency if you are unable to pay your debts as they fall due.
The only risk for having money in a joint or sole bank account is that is could be seen as an asset in the bankruptcy if it is more than you reasonably need for your living cost in the time until your next receipt of monies.
If you have £100 a month to pay off your creditors (after paying for living costs - rent, bills, food etc) and your bills are anything above £100 then you will not have any more money to pay your bills and therefore you are insolvent.
So £100 left over....and bills are £120 you will be -£20 a month and therefore not able to pay your bills when they are due.
If you can pay all of your creditors and have money left over then yes you are solvent. If you can pay your creditors and have minimal money left over - and you are borrowing from one credit card to pay off another then this is where insolvency may come in....
Hi RHB, If you owe £15000 on credit cards and the minimum payments each month are £215. Your wages are £700 net a month. after you have paid rent, council tax electric bills etc you only have £90 left for these minimum payments you are therefore insolvent. It doesn't matter how much you have debtwise its just if you have enough to meet the minimum payments required. If you have a fair amount of your wages left each month them maybe an alternative to BR would be an IVA. Regards Tracy
solvent and ineligible for bankruptcy ?
Posted - 22 September 2008 : 16:27:10
