Author Topic: help please  (Read 1399 times)

parm21

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help please
« on: Jul 20, 2012, 10:56:35 AM »
hi people
first post so please forgive me, for my mistakes.
i would like to know how benefits are included in bankruptcy?
i am currently on long term sickness and receive incapacity benefit and DLA. I am on long term sick from work through some insurance i receive some money from work. with all honesty my health is getting no better and very unlikely i go back to work anytime soon.
My situation is
i am in debt of 28k to IVA, After my divorce i am in debt to my family for 13k and friends 2k.
The agreement I am meant to pay my family £300 every month starting Aug. for the next 48months. I honestly can't afford all this.
i told my family i may go bankrupt and my dad said he will increase my rent by  £150 cause he needs some money.
He said if i go bankrupt they will loose out. meaning my rent will be 680-700.
i have no assets no house no saving no nothing to be honest.
 i do have a DLA CAR though.
any help would be great
thank
people


James Falla

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Re: help please
« Reply #1 on: Jul 20, 2012, 11:47:53 AM »
Hi parm21
If you go bankrupt, you will have to tell the court about all of your income including your DLA and incapacity benefit. However if these are your only sources of income then you can be sure that the court will not take any of this from you to put towards paying for your debts. As such you will be able to use all of your income for your living expenses including paying your Dad as much as you can in rent. If you have a car through mobility this will also not be affected and you will be allowed to keep it.
 
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parm21

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Re: help please
« Reply #2 on: Jul 20, 2012, 12:05:21 PM »
thank you for your reply.
apart from my benefits i receive money from the insurance company from work.
is this what they would use to work out my expenses from, my rent my food bills ect?


James Falla

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Re: help please
« Reply #3 on: Jul 24, 2012, 10:01:41 AM »
Hi parm21
If you go bankrupt you will need to submit a statement of affairs to the court and official receiver. This should be completed correctly and will give a detailed account of your living expenditure budget. You will also need to provide details of all your sources of income. You then take away your total living expenses from your income to calculate disposable income. If this disposable income is more than £20 you may be asked to make monthly payments towards your bankruptcy. However from what you have said it sounds like your income (even including your benefits) will be equal to or less than your living expenses budget so you have noting to worry about.
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