Author Topic: Bankruptcy, Partners and Benefits......  (Read 22037 times)

Mrmr78

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Bankruptcy, Partners and Benefits......
« on: Jun 19, 2017, 02:08:58 PM »
Hi,


First time poster, any advice or guidance on the following would be greatly appreciated, and apologies if I ramble, I have a tendency to even when typing!!  :)


I am currently considering my options over debt problems. I owe 20,000+ in unsecured debts, some of these are from a number of years back but have always just 'stayed there'. Since then though I have had to leave full time work and become a full time carer.


My questions revolve around benefits and partners. My partner works full time and we have a joint tax credits claim as well as me being a full time carer for our disabled son. What I am trying to get a handle on is how bankruptcy would affect the joint tax credits, would it be frozen, would it be halted or touched? And the same on my partners income, obviously it covers most if not all our bills etc so would my carers allowance be classed as disposable income when it comes to the bankruptcy? Unfortunately tax credits is a huge part of our income and any effect on it would be pretty bad for us.


Most bills, TV, electric, phones etc are in my partners name so I'm also wondering if the cost of them would be taken as expenditure for me or if my carers allowance and tax credits would be counted towards the paying of them.


Thanks for any advice!
 

Lisa Thomas

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Re: Bankruptcy, Partners and Benefits......
« Reply #1 on: Jun 21, 2017, 09:42:08 AM »
Hi


I cannot post external links on this forum.


Go to Google and search The Insolvency Service Technical Manual


Go to Chapter 31.7 (Income Payments Agreements)


Click on at Part 3


then section b) State Benefits


You will see that benefits should not be taken but also additional benefits should not be ignored as a possibility of setting up an IPA.


The fact that the bills might be in your partners name does not mean he is solely responsible for their payment - your income should be allocated to pay your share of the expenditure, regardless of whose name the bills are in.


I hope this is helpful.



www.Nevilleco.co.uk 01752 786800

Mrmr78

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Re: Bankruptcy, Partners and Benefits......
« Reply #2 on: Jun 21, 2017, 10:26:23 AM »
Thanks so much, that is very very helpful  :)

Lisa Thomas

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Re: Bankruptcy, Partners and Benefits......
« Reply #3 on: Jun 21, 2017, 10:27:29 AM »
You're welcome.  Best of luck.  If you can get your debts down to under £20k you may also want to explore the option of a Debt Relief Order.
www.Nevilleco.co.uk 01752 786800