Hi all, this is my first post after weeks of useful research thanx to this site and I am beginning to think BR is my way forward. I am self emp with gross inc of 12k net profit 6k,child benefit for my 2 kids, tax credits and maintenance from kids father. which of these are included in I&E? ie. do they take my gross or net income and are child relating income (chb & maint) taken into consideration? Also when calculating my mortgage payments can I only have interest only mortgage or am I allowed to make some capital contribution too? Any help would be greatly appreciated, thanx
Hi Short1, to answer your questions 1)Your income is taken net 2)All forms of income will be taken into account except specificaly child benefit 3)However any contribution you are asked to pay will not be greater than the Earned income part. 4)You will be allowed the total amount of your mortgage unless it is excessive. (what does excessive mean?. This is down to the OR but m not many are rejected)
with regard to repayment mortgage there is no point in repaying the capital sum at thos point because when you are declared Br the equity in the property ( beneficial interest) will belong to the official receiver.
if you continue to pay down the mortgage during the 12 months of bankruptcy you are actually ( unless in significant negative equity ) risking creating a debt for yourself if you want to keep the house.
i.e. you are increasing the equity for the official receiver which has no benefit for you or your family.
Thanx guys for your info, I'd not thought about the implications of increasing the equity in our home as I think my mum will be buying the BI so nothing to be gained by paying off some capital..my business expenses that reduce gross income to net profit include things like depreciation/capital allowances for car & office equipment and £520 pa for home used as office, will these deductions still be allowable in my profit & loss account? sorry if this sounds a bit complex but I need to get things straight in my head.
Here I go
Posted - 07 July 2009 : 19:18:22
