Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By Dan Small
#212390 When I'm made bankrupt I declare income and outgoings on the forms for the OR and they decide what I pay back out of my salary etc. so do I also include my entire mortgage payment on there? Do I declare the whole amount of the mortgage or just 50% as it's a joint mortgage?

The reason I ask is that I'm hoping my wife can buy the interest in the property so we can keep the house and obviously we'll keep paying the mortgage, but this makes potentially a big difference to the amount of disposable income I appear to have. At the moment, we have a joint account where all the bills come out of and our income goes into. After bankruptcy, the wife will be sole name on the bank account and the bills will continue to be paid from it, but the total amounts won't change and we'll still need all our combined incomes to pay for the bills.

I'm a bit confused on that bit!!
By Crunchynut
#212397 You're confusing yourself I think. You will still be contributing half the costs of the bills, whether they are paid from your wife's account, a stack of cash in the bread bin, or coins in your pocket.

Therefore, the figure you should give is the figure you are currently paying, which I understand to be half, from what you have said.

Bear in mind that the beneficial interest will be transferred to your wife although the mortgage will probably remain in joint names ( depending how you fund the purchase ).

I' investigate the possibility of remortgaging though as lenders aren't as keen to do this any more, especially if you are effectively stripping the equity by doing so.
By Dan Small
#212398 Yes I haven't written that very well, I apologise. What I meant was that in reality I pay for all the bills, including the full amount of the mortgage. My wife's earnings pay for stuff for her (her car, her hair etc.) but all my money goes on all the bills. I appreciate that looks unfair but that's the way it works due to a difference in our earnings.

So, my question was meant to read, will the OR expect my wife to pay half toward everything, thereby making it look as though I have more disposable income than I actually do? Does that make sense?
By Crunchynut
#212409 OK. I understand now.

The OR will expect your wife to be making some contribution to the household finances ( after all she could be earning 100k a year for all he knows ) but it's important you are realistic in your figures.

If you pay ALL the mortgage and your wife pays all the food, for example, then that's what you put. You're the one going bankrupt, not your wife, although you ( obviously ) need to be realistic and reasonable.

So put the figure you spend - it really is that simple.