Author Topic: Bankruptcy - Conflicting Advice  (Read 1751 times)

bsnowy

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Bankruptcy - Conflicting Advice
« on: May 10, 2011, 01:40:50 PM »
Hi
 
My partner is contemplating going bankrupt but we seem to be getting conflicting advice over whether or not I would be required to pay anything in to the bankruptcy.
 
The only money that my partner receives is £215 a month in carer's allowance for our son.  He currently owes around £22,000 in total on two credit cards (nothing in my name).  He has no assets only an "M" Reg car worth around £500.00.
 
We have 2 children and live in a rented housing association house and I pay for everything by direct debit from my account (rent, gas, electricity, telephone, water rates, council tax, TV licence etc. etc.).  I work fulltime.   I have around £12,000 on credit cards.  After the rent and all bills (direct debits) are paid (not including my credit cards) I will have £1,500 left (which is inclusive of my son's £488.75 DLA and child benefit of £134.80).  This £1,500 is before food, clothing, school meals, petrol, car expenses, credit card bills etc. etc. are paid.
 
The man at the CAB said that we could be asked for £650 per month as the household income is taken into consideration and not just my partner's own.  However, on phoning The National Debtline and Insolvency Service they don't think I would be liable for the debts as they are not in my name.  Who is right? 
 
Thanks in advance.

James Falla

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Re: Bankruptcy - Conflicting Advice
« Reply #1 on: May 16, 2011, 03:45:07 PM »
Hi there
 
The National Debt Helpline are right. You do not have to contribute payments towards your partner's debts if he goes bankrupt.  Basically you are supporting him but are not liable for his debts. Given his income is only very small, I am certain that the OR will say that this should be used to support you and therefore he will not be asked to pay an IPA (income payment agreement) at all.
 
Bear in mind that from June 1st, the cost of bankruptcy will rise from £450 to £525 + court fee of £175. Your partner may be able to get the court fee waived but he will still have to pay the £525.
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bsnowy

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Re: Bankruptcy - Conflicting Advice
« Reply #2 on: May 22, 2011, 11:05:58 PM »
Thanks for your reply James - it is really helpful.

James Falla

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Re: Bankruptcy - Conflicting Advice
« Reply #3 on: May 25, 2011, 04:47:50 PM »
My pleasure. Don't hesitate to post again if you have any further questions :)
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johonson121

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Re: Bankruptcy - Conflicting Advice
« Reply #4 on: Nov 30, 2011, 08:38:02 PM »
Hi i am smith and i am new for this forum and i have some few question can i ?

James Falla

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Re: Bankruptcy - Conflicting Advice
« Reply #5 on: Dec 01, 2011, 03:25:27 PM »
You most certainly can. Ask away. If your question is related to personal debt in the uk we will be happy to try to help.
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