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beckydl
Starting Member
3 Posts |
 Posted - 14 April 2009 : 14:10:08
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| My husband wants to declare himself bankrupt,I have been advised that my earnings will be taken into considerations, is this right? |
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John
New Member
United Kingdom
73 Posts |
Posted - 14 April 2009 : 14:44:40
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Hi
technically yes.
BUT, not all of your income should be taken into account. Only the sum that you contribute towards the household essential expenditure.
Whatever happens any payments your husband may have to make can only come from any disposable income derived from his personal income not yours.
John White
England Jackman & Spacey |
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beckydl
Starting Member
3 Posts |
Posted - 14 April 2009 : 16:12:10
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quote:
Originally posted by John
Hi
technically yes.
BUT, not all of your income should be taken into account. Only the sum that you contribute towards the household essential expenditure.
Whatever happens any payments your husband may have to make can only come from any disposable income derived from his personal income not yours.
John White
England Jackman & Spacey
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beckydl
Starting Member
3 Posts |
Posted - 14 April 2009 : 16:15:40
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Thank you for that, can you just clarify what if any part of my monthly income can be touched? is it MY disposable income once essentials have been accounted for?
quote:
Originally posted by John
Hi
technically yes.
BUT, not all of your income should be taken into account. Only the sum that you contribute towards the household essential expenditure.
Whatever happens any payments your husband may have to make can only come from any disposable income derived from his personal income not yours.
John White
England Jackman & Spacey
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John
New Member
United Kingdom
73 Posts |
Posted - 14 April 2009 : 18:51:45
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Hi
please don't take this the wrong way but I knew you would be back to ask more following my response.
The reason being that to any sane person everything I wrote is, whilst true, gobbledegook.
Here's how it works, let's say your household expenditure allowance is £1500 per month.
Your husband as the bankrupt has to declare all of his net income, let's say it's £1,000.
Your take home pay is £800 of which £500 goes to meet the balance of the household expenditure and £300 you use for your own purposes such as your own credit etc (you do not have to account for these monies).
You therefore have no DI to the household so there won't be an IPA therefore you pay nothing. But if your net income was £1000 per month and you contributed £750 to the household then your husband only needs to contribute £750. Therefore HE has a DI of £250 per month which means he would pay £125 (50%) per month for 3 years.
So technically you have not paid but some of your income has gone toward household expenditure which frees up some of your husbands income and qualifies him to make payments.
Going to the other extreme, if the expenses were £1500 in total, your husband's (the bankrupt) net income was £750 and yours was £3000 there would be no IPA as after meeting his obligation he has no DI.
I do hope that's a little clearer.
John White
England Jackman & Spacey |
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My husband wants to declare himself bankrupt
